Glossary - balance

Fixes #462 Simpler definition
4 years ago · 77f5b6ca62
parent ec599a888f
commit 77f5b6ca62
1 changed files with 8 additions and 8 deletions
--- a/glossary.asciidoc
+++ b/glossary.asciidoc
@ -53,14 +53,14 @@ Autopilot::
    Autopilots are not part of the Lightning Network Protocol.

 balance::
-    The balance of a payment channel is encoded by the most recent commitment transaction.
-    The balance states the amount of bitcoin that belongs to each channel partner and the amount that are in flying HTLCs (HTLCs which are currently in the routing process and have not been settled yet).
-    The sum of the balance sheet equals the capacity.
-    The channel balance is only known by the channel partners.
-    If the channel balance is completely on one side of the channel, i.e. one channel partner has all of the bitcoin in the channel, this particular partner cannot receive any payments through this channel. This partner can, however, send payments and forward HTLCs.
-    The balance that a node has on its own side of the channel (and is thus able to spend) is called the outbound capacity.
-    The node's channel partner would refer to that balance as its inbound capacity, i.e. the amount that it is able to receive.
-    Nodes should aim to have balanced channels with similar inbound and outbound capacities.
+    The balance of a payment channel is the amount of bitcoin that belongs to each channel partner.
+    For example, Alice could open a channel with Bob for the value of 1 BTC.
+    The channel balance is then 1 BTC to Alice and 0 BTC to Bob.
+    As the users transact, the channel balance will update.
+    For e.g. if Alice sends 0.2 BTC to Bob, then the balance is now 0.8 BTC to Alice and 0.2 to Bob.
+    If the channel is closed, the Bitcoin in the channel will be divided up between the two channel partners according to the latest balance encoded in the commitment transaction.
+    In the Lightning Network the ability to send and receive payments is limited by channel balances.
+    See _capacity_.

 bech32::
    A checksummed base32 address format, at most 90 characters long, and capable of error correction. It is native to segregated witness (BIP173). Also referred to as "bc1" because of the current starting values of each address. Transactions made using bech32 are smaller in most cases, and therefore, may only require a lower fee.