@ -26,7 +26,7 @@ The below is an inexhaustive list (in alphanumerical order):
Note that when using Lightning explorers, just like with existing block explorers, privacy can be a concern.
If users are careless, the website may track their IP addresses and collect their behavior records (for example, the nodes users are interested in).
Also it should be noted that as there is no global consensus of the current Lightning graph or the current state of any existing channel policy, users should never rely on Lightning explorers to retrieve the most updated information.
Also, it should be noted that as there is no global consensus of the current Lightning graph or the current state of any existing channel policy, users should never rely on Lightning explorers to retrieve the most updated information.
Furthermore as users open, close, and update channels, the graph will change and individual Lightning explorers may not be up to date.
Users should instead be running their own node to build a channel graph and stay informed of the latest state of the network.
Where they use Lightning explorers, it should be sparingly or to gather statistics.
@ -53,7 +53,7 @@ Blockchains, especially open blockchains like Bitcoin, attempt to minimize or el
Every other component of a Lightning wallet brings similar considerations of trust. If all the components are under the control of the user, then the amount of trust in third parties is minimized, bringing maximum power to the user. Of course, this brings a direct trade-off, as with that power comes the corresponding responsibility to manage complex software.
Every user must consider their own technical skills before deciding what type of Lightning wallet to use. Those with strong technical skills should use a Lightning wallet that puts all of the components under the direct control of the user. Those with fewer technical skills but a desire to control their funds, should choose a _non-custodial_ Lightning wallet.
Every user must consider their own technical skills before deciding what type of Lightning wallet to use. Those with strong technical skills should use a Lightning wallet that puts all of the components under the direct control of the user. Those with fewer technical skills but a desire to control their funds should choose a _non-custodial_ Lightning wallet.
Often the trust in those cases relates to privacy.
If users decide to outsource some functionality to a third party they usually give up some privacy as the third party will learn some information about them.
@ -87,7 +87,7 @@ Lightning wallets can be installed on a variety of devices, including laptops, s
The category "Third-party Lightning Nodes" can again be subdivided into:
- Lightweight: means that the Lightning Node is operated by a third party and that the wallet obtains the required information through an API that connects wallet and third-party Lightning node.
- Lightweight: means that the Lightning Node is operated by a third party and that the wallet obtains the required information through an API that connects the wallet and third-party Lightning node.
- None: means that not only is the Lightning Node operated by a third party but most of the wallet is operated by a third party in the cloud such that the wallet does not even need to make calls on a Lightning node API.
These subcategories are used in Table <<lnwallet-examples>>.
@ -144,7 +144,7 @@ Alice uses an Android device and will use the Google Play Store to download and
.Eclair Mobile in the Google Play Store
image:images/eclair-playstore.png["Eclair wallet in the Google Play Store"]
Alice notices a few different elements on this page, that help her ascertain that this is, most likely, the correct "Eclair Mobile" wallet she is looking for. Firstly, the organization "ACINQ" footnote:[ACINQ: Developers of the Eclair Mobile Lightning wallet (https://acinq.co/).] is listed as the developer of this mobile wallet, which Alice knows from her research is the correct developer. Secondly, the wallet has been installed "10,000+" times and has more than 320 positive reviews. It is unlikely this is a rogue app that has snuck into the Play Store. As third step, she goes to the ACINQ website (https://acinq.co/). She verifies that the webpage is secure (https, not http) which is shown as a green lock by some browsers. On the website she goes to the Download section or looks for the link to the Google App store. She finds the link and clicks it. She compares that this link brings her to the very same app in the Google App Store. Satisfied by these findings, Alice installs the Eclair app on her mobile device.
Alice notices a few different elements on this page, that help her ascertain that this is, most likely, the correct "Eclair Mobile" wallet she is looking for. Firstly, the organization "ACINQ" footnote:[ACINQ: Developers of the Eclair Mobile Lightning wallet (https://acinq.co/).] is listed as the developer of this mobile wallet, which Alice knows from her research is the correct developer. Secondly, the wallet has been installed "10,000+" times and has more than 320 positive reviews. It is unlikely this is a rogue app that has snuck into the Play Store. As a third step, she goes to the ACINQ website (https://acinq.co/). She verifies that the webpage is secure (https, not http) which is shown as a green lock by some browsers. On the website she goes to the Download section or looks for the link to the Google App store. She finds the link and clicks it. She compares that this link brings her to the very same app in the Google App Store. Satisfied by these findings, Alice installs the Eclair app on her mobile device.
[WARNING]
====
@ -157,7 +157,7 @@ When Alice opens the Eclair Mobile app for the first time, she is presented with
==== Responsibility with Key Custody
As we mentioned in the beginning of this section, Eclair is a _non-custodial_ wallet, meaning that Alice has sole custody of the keys used to control her bitcoin. This also means that Alice is responsible for protecting and backing up those keys. If Alice loses the keys, no one can help her recover the bitcoin, and they will be lost forever.
As we mentioned at the beginning of this section, Eclair is a _non-custodial_ wallet, meaning that Alice has sole custody of the keys used to control her bitcoin. This also means that Alice is responsible for protecting and backing up those keys. If Alice loses the keys, no one can help her recover the bitcoin, and they will be lost forever.
[WARNING]
====
@ -256,9 +256,9 @@ Similarly, if she billed a client for a service offered over the Internet, Alice
Alice could even print the QR code and affix it to a sign and display it publicly to receive tips. For example, she could have a QR code affixed to her guitar and receive tips while performing on the street!
footnote:[It is generally not advisable to reuse the same Bitcoin address for multiple payments as all Bitcoin transactions are public.
A nosy person passing by could scan Alice's QR code and see how many tips Alice has already received to this address on the Bitcoin blockchain.
Fortunately the Lightning Network offers more private solutions to this, discussed later in the book!]
Fortunately, the Lightning Network offers more private solutions to this, discussed later in the book!]
Finally, if Alice bought bitcoin from a crypto-currency exchange, she could (and should) "withdraw" the bitcoin by pasting her Bitcoin Address into the exchange website. The exchange will then send the bitcoin to her address directly.
Finally, if Alice bought bitcoin from a cryptocurrency exchange, she could (and should) "withdraw" the bitcoin by pasting her Bitcoin Address into the exchange website. The exchange will then send the bitcoin to her address directly.
While Alice could select a specific Lightning node, or use the "Random node" option to have the Eclair wallet select a node at random, she will select the "ACINQ Node" option to connect to one of ACINQ's well-connected Lightning nodes.
Choosing the ACINQ node will slightly reduce Alice's privacy, as it will give ACINQ the ability to see all of Alice's transactions. It will also create a Single Point of Failure, since Alice will only have one channel, and if the ACINQ node is not available, Alice will not be able to make payments. To keep things simple at first, we will accept these trade-offs. In subsequent chapters we will gradually learn how to gain more independence and make fewer trade-offs!
Choosing the ACINQ node will slightly reduce Alice's privacy, as it will give ACINQ the ability to see all of Alice's transactions. It will also create a Single Point of Failure, since Alice will only have one channel, and if the ACINQ node is not available, Alice will not be able to make payments. To keep things simple at first, we will accept these trade-offs. In subsequent chapters, we will gradually learn how to gain more independence and make fewer trade-offs!
Alice selects "ACINQ Node" and is ready to open her first channel on the Lightning network.
@ -337,7 +337,7 @@ image:images/eclair-channel-open.png["Channel is Open"]
[TIP]
====
Did you notice that the channel amount seems to have changed? It hasn't: the channel contains 0.018 BTC, but in the time between screenshots the BTC exchange rate changed, so the USD value is different. You can choose to show balances in BTC or USD, but keep in mind that USD values are calculated in realtime and will change!
Did you notice that the channel amount seems to have changed? It hasn't: the channel contains 0.018 BTC, but in the time between screenshots the BTC exchange rate changed, so the USD value is different. You can choose to show balances in BTC or USD, but keep in mind that USD values are calculated in real-time and will change!
====
=== Buying a Cup of Coffee
@ -348,7 +348,7 @@ Alice grabs her mobile device and runs to Bob's Cafe in her neighborhood. She is
==== Bob's Cafe
Bob has a simple Point-of-Sale (PoS) application for the use of any customer who wants to pay with bitcoin over the Lightning Network. As we will see in the next chapter, Bob uses the popular opensource platform _BTCPay Server_ which contains all the necessary components for an e-commerce or retail solution, such as:
Bob has a simple Point-of-Sale (PoS) application for the use of any customer who wants to pay with bitcoin over the Lightning Network. As we will see in the next chapter, Bob uses the popular open-source platform _BTCPay Server_ which contains all the necessary components for an e-commerce or retail solution, such as:
* A Bitcoin Node using the Bitcoin Core software
* A Lightning Node using the c-lightning software
@ -382,7 +382,7 @@ Alice selects the option to "scan a payment request" and scans the QR code displ
.Alice's Send Confirmation
image:images/alice-send-detail.png[width=300]
Alice presses "PAY," and a second later, Bob's tablet shows a successful payment. Alice has completed her first Lightning Network payment! It was fast, inexpensive, and easy. Now she can enjoy her latte which was purchased using the most advanced payment technology in the world. And from now on, whenever Alice feels like drinking a coffee at Bob's Cafe she selects an item on Bob's tablet screen, scans the QR code with her cell phone, clicks pay and is served a coffee, all within seconds and all without "on-chain" transaction.
Alice presses "PAY," and a second later, Bob's tablet shows a successful payment. Alice has completed her first Lightning Network payment! It was fast, inexpensive, and easy. Now she can enjoy her latte which was purchased using the most advanced payment technology in the world. And from now on, whenever Alice feels like drinking a coffee at Bob's Cafe she selects an item on Bob's tablet screen, scans the QR code with her cell phone, clicks pay, and is served a coffee, all within seconds and all without "on-chain" transaction.
Alex Prut
4 years ago