* Update glossary.asciidoc
Minor formatting changes.
I've also reworded some definitions to make them clearer and more consistent.
In three cases, I removed additional sentences from entries because they added confusion rather than clarity.
There is still a bit more checking of the Glossary to be done.
* Update glossary.asciidoc
* Update glossary.asciidoc
made the sentence of the final disagreement more precise (:
Co-authored-by: Rene Pickhardt <rene@rene-pickhardt.de>
Depending on the context, could refer to the name of the currency unit (the coin), the network or the underlying enabling protocol. Written as bitcoin with a lowercase "b" usually refers to the currency unit. Bitcoin with an uppercase "B" usually refers to the protocol. See https://www.bitcoin.org for general information. The source code can be found at https://github.com/bitcoin/bitcoin.
Bitcoin mining::
Bitcoin mining is the process of constructing a block from recent Bitcoin transactions and then solving a computational problem required as Proof of Work.
Bitcoin mining is the process of constructing a block from recent Bitcoin transactions and then solving a computational problem required as proof of work.
It is the process by which the shared bitcoin ledger (i.e. the bitcoin blockchain) is updated and by which new transactions are included in the ledger.
It is also the process by which new bitcoin is issued.
Every time a new block is created, the mining node will receive new bitcoin created within the coinbase transaction of that block.
@ -77,13 +77,13 @@ block::
blockchain::
The blockchain is an irreversible distributed database storing all Bitcoin transactions.
The irreversibility comes from the fact that each group of transactions, referred to as a block, is validated by solving a Proof of Work riddle and including the hash of the previous block.
The irreversibility comes from the fact that each group of transactions, referred to as a block, is validated by solving a proof of work riddle and including the hash of the previous block.
Thus, the data can only be changed by an entity providing more than 51% of the computational power of the Bitcoin network.
Blocks currently have a size limit of 1 MB.
New blocks have a statistical probability of being produced every ten minutes.
BOLT::
BOLT, or Basis Of Lightning Technology, is the formal specification of the Lightning Network protocol. Unlike Bitcoin, which has a reference implementation that also serves as the protocol's specification the various Lightning Network implementations follow BOLT so they can work with one another to form the same network. It is available at https://github.com/lightningnetwork/lightning-rfc.
BOLT, or Basis Of Lightning Technology, is the formal specification of the Lightning Network protocol. Unlike Bitcoin, which has a reference implementation that also serves as the protocol's specification, the various Lightning Network implementations follow BOLT so they can work with one another to form the same network. It is available at https://github.com/lightningnetwork/lightning-rfc.
Breach Remedy Transaction::
A transaction claiming the outputs of a Revocable Sequence Maturity Contract with the help of the revocation key.
@ -92,11 +92,11 @@ Breach Remedy Transaction::
capacity::
The capacity of a payment channel is equivalent to the amount of bitcoin provided by the funding transaction.
As the funding transaction is publicly visible on the blockchain, and the channel is announced via the gossip protocol, the capacity is public information.
It does not reveal any information about which of the channel partners owns how much bitcoin in the channel.
It does not reveal any information about how much bitcoin each of the channel partners owns in the channel.
A high capacity does not guarantee that the channel can be used for routing in both directions.
The capacity does not change if some of the capacity is locked up in HTLCs.
This means that even a high capacity channel could at any time be unable to route a payment of a certain amount in both directions.
It is not to be confused with the balance.
Not to be confused with the balance.
c-lightning::
Implementation of the Lightning Network Protocol by the Victoria based company https://blockstream.com[Blockstream]. It is written in C. Source code is at https://github.com/ElementsProject/lightning.
@ -104,44 +104,44 @@ c-lightning::
closing transaction::
If both channel partners agree to close a channel they will create an exercise settlement transaction that reflects the most recent commitment transaction.
It does not include any Hashed Time Lock Contracts or Revocable Sequence Maturity Contracts.
After exchanging signatures for a closing transaction no further channel updates should be made, as this one allows one side to enforce the closing transaction on the blockchain.
Mutually closing a channel with the help of a closing transaction has the advantage that fewer blockchain transactions are required to claim all funds, in comparison to unilaterally forcing a channel close by publishing a commitment transaction. Additionally, funds are for both parties immediately spendable from a closing transaction.
After exchanging signatures for a closing transaction, no further channel updates should be made as this one allows one side to enforce the closing transaction on the blockchain.
Mutually closing a channel with the help of a closing transaction has the advantage that fewer blockchain transactions are required to claim all funds, in comparison to unilaterally forcing a channel close by publishing a commitment transaction. Additionally, funds for both parties are immediately spendable from a closing transaction.
coinbase::
A special field used as the sole input for coinbase transactions. The coinbase allows claiming the block reward and provides up to 100 bytes for arbitrary data.
A special field used as the sole input for coinbase transactions. The coinbase allows the block reward to be claimed and provides up to 100 bytes for arbitrary data.
The block reward consists of two things.
First, newly generated coins. The amount of allowed coins to be generated is part of the consensus rules and decreases over time based on the current block height.
Second, the miner is also allowed to add all the fees of the transactions from the current block to the coinbase.
Not to be confused with coinbase transaction.
coinbase transaction::
The first transaction in a block. Always created by a miner, it includes a single coinbase.
The first transaction in a block which is always created by a miner and which includes a single coinbase.
Not to be confused with coinbase.
cold storage::
Refers to keeping a reserve of bitcoin offline. Cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment. Cold storage is important for anyone with bitcoin holdings. Online computers are vulnerable to hackers and should not be used to store a significant amount of bitcoin.
Refers to keeping an amount of bitcoin offline. Cold storage is achieved when Bitcoin private keys are created and stored in a secure offline environment. Cold storage is important to protect bitcoin holdings. Online computers are vulnerable to hackers and should not be used to store a significant amount of bitcoin.
Commitment Transaction::
A commitment transaction is a Bitcoin transaction, signed by both channel partners, that encodes the latest balance of a channel.
Every time a new transaction is made or forwarded using the channel, the channel balance will update, and a new commitment transaction will be signed by both parties.
Importantly, for a channel between Alice and Bob, both Alice and Bob keep their own version of the commitment transaction, which is also signed by the other party.
At any point, the channel can be closed by either Alice or Bob if they submit their commitment transaction to the Bitcoin blockchain.
Submitting an older (outdated) commitment transaction is considered "cheating" (i.e. protocol breach) in the Lightning network and can be penalized by the other party claiming all the funds in the channel for themselves.
Submitting an older (outdated) commitment transaction is considered "cheating" (i.e. a protocol breach) in the Lightning network and can be penalized by the other party, claiming all the funds in the channel for themselves.
computationally easy::
A problem is considered to be computationally easy if there exists an algorithm that is able to compute the solution to the problem rather quickly (in polynomial time complexity).
A problem is considered to be computationally easy if there exists an algorithm that is able to compute the solution to the problem relatively quickly (in polynomial time complexity).
computationally hard::
A problem is considered to be computationally hard if no algorithm exists or is known that is able to compute the solution to the problem rather quickly (in polynomial time complexity).
A problem is considered to be computationally hard if no algorithm exists or is known that is able to compute the solution to the problem relatively quickly (in polynomial time complexity).
confirmations::
Once a transaction is included in a block, it has one confirmation. As soon as _another_ block is mined on the same blockchain, the transaction has two confirmations, and so on. Six or more confirmations are considered sufficient proof that a transaction cannot be reversed.
contract::
A contract is a set of Bitcoin transactions which result together in a certain desired behavior.
A contract is a set of Bitcoin transactions which together result in a certain desired behavior.
Examples are RSMCs to create a trustless, bi-directional payment channel or HTLCs to create a mechanism which allows trustless forwarding of payments through third parties.
Diffie Hellman Key Exchange::
Diffie Hellman (DH) Key Exchange::
On the Lightning Network, the Elliptic Curve Diffie-Hellman method is used.
It is an anonymous key agreement protocol that allows two parties, each having an elliptic-curve public-private key pair, to establish a shared secret over an insecure communication channel.
This shared secret may be directly used as a key, or to derive another key.
@ -158,7 +158,6 @@ digital signature::
double-spending::
Double-spending is the result of successfully spending some money more than once.
Bitcoin protects against double-spending by verifying that each transaction added to the blockchain plays by the rules; this means checking that the inputs for the transaction have not previously already been spent.
The Revocable Sequence Maturity Contracts used to construct payment channels heavily attempt to double-spend bitcoin.
downstream payment::
TBD.
@ -174,7 +173,8 @@ encoding::
For example, converting a human-readable form to a digitally space-efficient form.
Electrum server::
An Electrum server is a bitcoin node with an additional interface (API) is often required by bitcoin wallets that do not run a full node. For example, these wallets check the status of specific transactions or broadcast transactions to the mempool using Electrum server APIs. Some Lightning wallets also use Electrum servers, so even if they are non-custodial, they may compromise user sovereignty in that users trust the Electrum server to provide accurate information and privacy in that calls made to the Electrum server may reveal private information.
An Electrum server is a Bitcoin node with an additional interface (API) is often required by bitcoin wallets that do not run a full node. For example, these wallets check the status of specific transactions or broadcast transactions to the mempool using Electrum server APIs. Some Lightning wallets also use Electrum servers, so even if they are non-custodial, they may compromise user sovereignty in that users trust the Electrum server to provide accurate information and privacy in that calls made to the Electrum server may reveal private information.
ephemeral key::
Ephemeral keys are mainly within the SPHINX Mix Format and Onion Routing on the Lightning Network.
@ -189,7 +189,7 @@ feature bits::
Also known as feature flags.
fees::
In the context of Bitcoin, the sender of a transaction includes a fee paid to miners for including the transaction in a block.
In the context of Bitcoin, the sender of a transaction pays a fee to miners for including the transaction in a block.
In the context of the Lightning Network, nodes will charge routing fees for forwarding other users' payments.
Individual nodes can set their own fee policies which will be calculated as the sum of a fixed _base_fee_ and a _fee_rate_ which depends on the payment amount.
@ -198,7 +198,7 @@ funding transaction::
From the perspective of the Bitcoin network, the process of opening a channel by creating a RSMC is started by creating the funding transaction and finished by broadcasting it to the Bitcoin network and have it included in the blockchain.
The value of the funding transaction is exactly the capacity of the payment channel.
The output of the funding transaction is a 2-of-2 multisignature script (multisig) where each channel partner controls one key.
It is supposed to be spent by the commitment transactions or by the closing transaction.
It will eventually be spent by one of the commitment transactions or by the closing transaction.
Due to its multisig nature, it can only be spent mutually.
It is part of the RSMC to ensure that either side of the channel can withdraw their funds without the necessity to trust the channel partner.
@ -224,7 +224,7 @@ hash::
hash function::
A cryptographic hash function is a mathematical algorithm that maps data of arbitrary size to a bit string of a fixed size (a hash) and is designed to be a one-way function, that is, a function which is infeasible to invert.
The only way to recreate the input data from an ideal cryptographic hash function's output is to attempt a brute-force search of possible inputs to see if they produce a match, or use a rainbow table of matched hashes.
The ideal cryptographic hash function has five main properties: It is deterministic so the same message always results in the same hash.
The ideal cryptographic hash function has five main properties: It is deterministic, so the same message always results in the same hash.
It is quick to compute the hash value for any given message.
It is infeasible to generate a message from its hash value except by trying all possible messages.
A small change to a message should change the hash value so extensively that the new hash value appears uncorrelated with the old hash value.
@ -253,7 +253,7 @@ JIT Routing::
This might allow them to successfully forward payments that might otherwise have failed due to a lack of outgoing capacity.
Lightning message::
A Lightning message is an encrypted data string that can be sent between two peers on the Lightning Network. Similar to other communication protocols Lightning messages consist of a header and a body. The header and the body have their own HMAC. This ensures that the headers of fixed length will also be encrypted and adversaries won't be able to figure out what messages are being sent by inspecting the length.
A Lightning message is an encrypted data string that can be sent between two peers on the Lightning Network. Similar to other communication protocols, Lightning messages consist of a header and a body. The header and the body have their own HMAC. This ensures that the headers of fixed length will also be encrypted and adversaries won't be able to deduce what messages are being sent by inspecting the length.
The Lightning Network is a protocol on top of Bitcoin (or other cryptocurrencies).
@ -284,11 +284,10 @@ millisatoshi::
mpp::
A multipart payment (which is often also referred to as multipath payment) is a method for payments where the sender can split the payment amount into multiple smaller parts and deliver them potentially along multiple potentially disjoint paths. As the MPP strategies do not require one to send the smaller splits along different paths we find the term multipart payment more accurate than multipath payment.
multisignature::
Multisignature (multisig) refers to requiring more than one key to authorize a Bitcoin transaction.
Payment channels are always encoded as multisignature addresses requiring one signature from each peer of the payment channel.
In the standard case of a two-party payment channel a 2-of-2 multisignature address is used.
In the standard case of a two-party payment channel, a 2-of-2 multisignature address is used.
Neutrino::
Neutrino is a later alternative to SPV that also verifies whether certain transactions are contained in a block without downloading the entire block. However, it offers a number of improvements over SPV: Neutrino does not transmit any information that would allow a third party to determine users’ identities, it facilitates the use of non-custodial apps, and it reduces the computational load on full nodes. The trade-off for these improvements is that Neutrino requires more data from the full node than SPV.
@ -317,13 +316,12 @@ onion routing::
The encrypted data is transmitted through a series of network nodes called onion routers, each of which peels away a single layer, uncovering the data's next destination.
When the final layer is decrypted, the message arrives at its destination.
The sender remains anonymous because each intermediary knows only the location of the immediately preceding and following nodes.
With the SPHINX Mix Format, the final destination also remains anonymous as only the previous router could see it but does not know if they are routing it to the final node or just the next hop.
The output of a Bitcoin transaction, also called an "Unspent Transaction Output" or "UTXO"
The output of a bitcoin transaction, also called an Unspent Transaction Output or UTXO.
An output is essentially an amount of bitcoin that can be spent, as well as a script that defines what conditions need to be fulfilled for that bitcoin to be spent.
Every Bitcoin transaction consumes the outputs of the sender and creates new outputs that can be spent later by the receiver.
Every bitcoin transaction consumes the outputs of the sender and creates new outputs that can be spent later by the receiver.
A typical bitcoin output will require the signature of the owner to be spent, but outputs can require the fulfillment of more complex scripts.
For example, a multisignature script requires that two or more users to sign before an output can be spent, which is a fundamental building block of the Lightning Network.
@ -341,18 +339,18 @@ P2WPKH::
The signature of a P2WPKH (Pay-to-Witness-Public-Key-Hash) contains the same information as a P2PKH spending, but is located in the witness field instead of the scriptSig field. The scriptPubKey is also modified.
P2WSH::
The difference between P2SH and P2WSH (Pay-to-Witness-Script-Hash) is about the cryptographic proof location change from the scriptSig field to the witness field and the scriptPubKey that is also modified.
The difference between P2SH and P2WSH (Pay-to-Witness-Script-Hash) is the location change of the cryptographic proof from the scriptSig field to the witness field and the modification of the scriptPubKey.
payment::
A payment occurs if we transfer bitcoin within the Lightning Network.
A payment occurs if bitcoin is transferred within the Lightning Network.
Payments are generally not seen on the blockchain.
The recipient initiates a payment by creating an invoice.
The invoice includes a payment hash which is the hash of a secret preimage.
This payment hash is used by the Hashed Time Lock Contracts during the routing process.
payment channel::
A payment channel is a financial relationship between two nodes on the Lightning Network, created using a multisignature Bitcoin transaction.
The channel partners can use the channel to send Bitcoin back and forth between each other without committing all of the transactions to the Bitcoin blockchain.
A payment channel is a financial relationship between two nodes on the Lightning Network, created using a multisignature bitcoin transaction.
The channel partners can use the channel to send bitcoin back and forth between each other without committing all of the transactions to the Bitcoin blockchain.
In a typical payment channel only two transactions, the funding transaction and the commitment transaction, are added to the blockchain.
The other transactions are not included in the blockchain and are said to occur "off-chain".
There are various methods of constructing a payment channel discussed further in the chapter on channel construction.
@ -362,12 +360,12 @@ peer::
In particular, they are connected via an encrypted, authenticated communication over a TCP Socket.
penalty transaction::
Look at the Breach Remedy Transaction.
See Breach Remedy Transaction.
private channel::
A channel not announced to the rest of the network.
Technically "private" is a misnomer as these channels can still be identified through routing hints and commitment transactions.
We suggest they are better described as "unannounced" channels.
They are better described as "unannounced" channels.
With an unannounced channel, the channel partners can send and receive payments between each other as normal.
However, the rest of the network will not be aware of it and so cannot typically use it to route payments.
As the number of and capacity of unannounced channels is unknown, the total public channel count and capacity only accounts for a portion of the total Lightning Network.
@ -378,8 +376,8 @@ preimage::
This preimage set can be empty, finite or infinite.
In cryptography, the function $f$ is usually taken to be a hash function.
Cryptographers use the term preimage for an arbitrary element of $R$.
In particular, when using SHA-256 we should state that each element has an infinite amount of preimages.
Yet it is still believed to be computationally hard to find such a preimage.
In particular, when using SHA-256, it should be stated that each element has an infinite number of preimages.
However, it is still believed to be computationally hard to find such a preimage.
proof of work::
A piece of data that requires significant computation to find.
@ -387,7 +385,7 @@ proof of work::
See _bitcoin mining_
Relative Timelock::
Relative Timelock is a kind of timelock that allows an input to specify the earliest time it can be added to a block based on how long ago (which is relative) the output referred by that input was included in a block. Such a feature is jointly achieved by nSequence field and CheckSequenceVerify opcode, which are introduced by BIP68/112/113.
Relative Timelock is a type of timelock which allows an input to specify the earliest time the input can be added to a block. The time is relative and is based on when the output referenced by that input was included in a block. Such a feature is jointly achieved by nSequence field and CheckSequenceVerify opcode, which were introduced by BIP68/112/113.
Revocable Sequence Maturity Contract::
This contract is used to construct a payment channel between two Bitcoin or Lightning Network users who do not need to trust each other.
@ -400,7 +398,7 @@ revocation key::
Each channel partner knows one revocation key.
Knowing both revocation keys, the output of the Revocable Sequence Maturity Contract can be spent within the predefined timelock.
Revocation keys are used to disincentivize channel partners from broadcasting an old channel state.
While negotiating a new channel state the old revocation keys are being shared.
While negotiating a new channel state, the old revocation keys are being shared.
Revocation keys are used instead of signatures since they can be derived with an HD key derivation scheme.
This makes it less cumbersome to store all revocation keys of old states.
@ -412,9 +410,9 @@ topology::
Nodes of the graph are the Lightning Network nodes or participants.
The edges of the graph are the payment channels.
The topology of the Lightning Network is publicly broadcast with the help of the gossip protocol unless nodes decide to act privately.
This means that the Lightning Network is probably larger than the announced number of nodes.
This means that the Lightning Network may be significantly larger than the announced number of nodes.
Knowing the topology is of particular interest in the source-based routing process of payments in which the sender discovers a route.
Also, the topology is important for features like the autopilot.
Also, the topology is important for features such as the autopilot.
satoshi::
A satoshi is the smallest denomination of bitcoin that can be recorded on the blockchain. It is the equivalent of 0.00000001 bitcoin and is named after the creator of Bitcoin, Satoshi Nakamoto. ((("satoshi")))
@ -423,13 +421,13 @@ Satoshi Nakamoto::
Satoshi Nakamoto is the name used by the person or group of people who designed Bitcoin and created its original reference implementation, Bitcoin Core. As a part of the implementation, they also devised the first blockchain database. In the process, they were the first to solve the double-spending problem for digital currency. Their real identity remains unknown.
Script::
Bitcoin uses a scripting system for transactions. Forth-like, Script is simple, stack-based, and processed from left to right. It is purposefully not Turing-complete, with no loops.
Bitcoin uses a scripting system for transactions called Script. Forth-like, it is simple, stack-based, and processed from left to right. It is purposefully not Turing-complete, with no loops.
ScriptPubKey (aka pubkey script)::
ScriptPubKey or pubkey script, is a script included in outputs which sets the conditions that must be fulfilled for those satoshis to be spent. Data for fulfilling the conditions can be provided in a signature script.
ScriptSig (aka signature script)::
ScriptSig or signature script, is the data generated by a spender which is almost always used as variables to satisfy a pubkey script.
ScriptSig or signature script is the data generated by a spender, which are almost always used as variables to satisfy a pubkey script.
Segregated Witness is an upgrade to the Bitcoin protocol, which technological innovation separates signature data from Bitcoin transactions. Segregated Witness was deployed as a soft fork; a change that technically makes Bitcoin’s protocol rules more restrictive.
Segregated Witness is an upgrade to the Bitcoin protocol in which signature data is separated from Bitcoin transactions. Segregated Witness was deployed as a soft fork and is a change that technically makes Bitcoin’s protocol rules more restrictive.
SHA::
The Secure Hash Algorithm or SHA is a family of cryptographic hash functions published by the National Institute of Standards and Technology (NIST).
The Secure Hash Algorithm or SHA is a family of cryptographic hash functions published by the National Institute of Standards and Technology (NIST). The Bitcoin protocol currently uses SHA256.
short channel id (scid)::
Once a channel is established, the index of the funding transaction on the blockchain is used as the short channel id to uniquely identify the channel.
@ -470,15 +468,15 @@ soft fork::
SPHINX Mix Format::
A particular technique for Onion Routing used in the Lightning Network and invented by George Danezis and Ian Goldberg in 2009.
With the SPHINX Mix Format, each message of the onion package is padded with some random data so that no single hop can estimate how far on the route they are.
With the SPHINX Mix Format, each message of the onion package is padded with some random data so that no single hop can estimate how far along the route ithas traveled.
While the privacy of the sender and receiver of the payment is protected, each node is still able to return an error message along the path to the originator of the message.
The paper can be found at https://cypherpunks.ca/~iang/pubs/Sphinx_Oakland09.pdf
Submarine Swaps::
Submarine Swaps enable transfers between on-chain addresses and off-chain locations, like the Lightning Network. Just as standard LN transfers chain payments by means of HTLCs that make the final claim on funds conditional on the recipient revealing a secret to all links in the chain, Submarine Swaps use the same logic and procedure to transfer funds across the on-chain/off-chain barrier with minimal trust. They can also be used to enable transfers from another chain, say Litecoin, to an off-chain LN address. Reverse Submarine Swaps allow bitcoin transfers in the opposite direction that is, from an off-chain LN location to an on-chain address.
Submarine Swap::
A Submarine Swaps enables transfers between on-chain Bitcoin addresses and off-chain locations, like the Lightning Network. Just as standard LN transfers chain payments by means of HTLCs that make the final claim on funds conditional on the recipient revealing a secret to all links in the chain, Submarine Swaps use the same logic and procedure to transfer funds across the on-chain/off-chain barrier with minimal trust. They can also be used to enable transfers from another chain, say Litecoin, to an off-chain LN address. Reverse Submarine Swaps allow bitcoin transfers in the opposite direction, from an off-chain LN location to an on-chain address.
timelocks::
A timelock is a type of encumbrance that restricts the spending of some bitcoin until a specified future time or block height. Timelocks feature prominently in many Bitcoin contracts, including payment channels and hashed timelock contracts.
timelock::
A timelock is a type of encumbrance that restricts the spending of some bitcoin until a specified future time or block height. Timelocks feature prominently in many Bitcoin contracts, including payment channels and Hashed Timelock Contracts.
transaction::
Transactions are a binary format used by the Bitcoin protocol to transfer bitcoin from one address to another.
@ -488,13 +486,13 @@ transaction::
Transactions can also contain contracts and should not be confused with payments.
transaction malleability::
Transaction malleability is a property that hash of a transaction can change without changing the semantic of the transaction (the UTXOs it is spending, the destinations and the corresponding amounts).
Transaction malleability is a property that the hash of a transaction can change without changing the semantic of the transaction (the UTXOs it is spending, the destinations and the corresponding amounts).
For example, altering the signature can change the hash of a transaction, because of the non-deterministism of ECDSA signing.
A commitment transaction needs the hash of a funding transaction, if the hash of the funding transaction changes, transactions depending on it will become invalid. This will make users unable to claim the refunds if there is.
Segregated Witness soft fork addresses this issue and therefore is an important upgrade to support Lightning Network.
A commitment transaction needs the hash of a funding transaction and if the hash of the funding transaction changes, transactions depending on it will become invalid. This will make users unable to claim the refunds if there are any.
The Segregated Witness soft fork addresses this issue and is therefore an important upgrade to support Lightning Network.
transport layer::
In computer networking, the transport layer is a conceptual division of methods of a model of how computers talk to each other.
In computer networking, the transport layer is a conceptual division of the methods used by computers (and ultimately applications) to talk to each other.
The transport layer provides communication services between computers such as flow control, verification, and multiplexing (to allow multiple applications to work on a computer at the same time).
unspent transaction output (UTXO)::
@ -504,19 +502,19 @@ upstream payment::
TBD.
wallet::
Software that holds all your Bitcoin addresses and secret keys. Use it to send, receive, and store your bitcoin.
A wallet is a piece of software that holds Bitcoin addresses and secret keys. It is used to send, receive, and store bitcoin.
watchtower::
Watchtowers are a security service on the Lightning network that monitor channels.
In the case that one of the channel partners goes offline or loses their backup, a watchtower keeps their own backups and can restore their channel information.
They also monitor the Bitcoin blockchain and can submit a penalty transaction in the case that one of the partners tries to "cheat" by broadcasting an outdated state.
Watchtowers can be run by the channel partners themselves, or as a paid service offered by a third party.
Watchtowers have no control over the funds in the channels themselves.
zombie channel::
An open channel where one of the channel partners has gone permanently offline.
Zombie channels cannot be used to route payments and have only downsides to the online partner.
Zombie channels are better off closed but they are tricky to classify as the online partner can't always be sure if the offline party will stay offline.
It is good practice to close zombie channels although they can be tricky to identify as the online partner can't always be sure if the offline party will stay offline.
Some contributed definitions have been sourced under a CC-BY license from the https://en.bitcoin.it/wiki/Main_Page[Bitcoin Wiki], https://en.wikipedia.org[Wikipedia], https://github.com/bitcoinbook/bitconbook[Mastering Bitcoin] or from other open source documentation sources.
Zendo102
3 years ago
committed by
GitHub