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@ -153,7 +153,7 @@ From the example in the last section you learnt that more ingredients are necess
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These ingredients are the commitment transactions.
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They are used to make sure that everyone on the channel is able to get their own funds back in case the channel partner becomes unresponsive or, even worse, if the channel partner deliberately or by accident tries to cheat with the execution of the protocol.
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The commitment transactions also encode the balance of the payment channel.
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The balance of the payment channel is an agreement of the channel partners of how the capacity is split among the partners.
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The balance of the payment channel is an agreement of the channel partners about how the capacity is split among the partners.
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Let us assume Alice opens a channel with a capacity of 10 mBTC with Bob.
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Naturally one would assume that Alice should still be in the possession of the 10 mBTC.
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This can actually be easily achieved with the following construction:
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