From 9522121745a023f90fc25456aa07ae3c4d7a71b5 Mon Sep 17 00:00:00 2001 From: "Andreas M. Antonopoulos" Date: Wed, 14 Oct 2020 09:18:36 -0500 Subject: [PATCH] Fixes #435 --- 03_how_ln_works.asciidoc | 5 +++++ 1 file changed, 5 insertions(+) diff --git a/03_how_ln_works.asciidoc b/03_how_ln_works.asciidoc index 0ec5045..66121fa 100644 --- a/03_how_ln_works.asciidoc +++ b/03_how_ln_works.asciidoc @@ -212,6 +212,11 @@ Because Bitcoin is censorship resistant, no one can prevent someone from publish The way the penalty works is by giving the cheated party an opportunity to claim the balance of the cheater. So if someone attempts to cheat by broadcasting an old commitment transaction, in which they are paid a higher balance than they are due, the other party can punish them by taking *both* their own balance and the balance of the cheater. The cheater loses everything. +[TIP] +==== +You might notice that if Alice drains her channel balance almost completely, she could then risk cheating with little risk. Bob's penalty wouldn't be so painful if her channel balance is low. To prevent this, the Lightning protocol requires each channel partner to keep a minimum balance in the channel as "skin in the game". +==== + Let us go through the channel construction scenario again, adding a penalty mechanism to protect against cheating: * Alice creates a channel with Bob and puts 100k satoshi into it.