diff --git a/01_introduction.asciidoc b/01_introduction.asciidoc index 0793624..0e33c2a 100644 --- a/01_introduction.asciidoc +++ b/01_introduction.asciidoc @@ -67,10 +67,12 @@ Blockchain:: A distributed transaction ledger, produced by a network of computer Transaction:: A data structure that records the transfer of control over some funds (e.g. some bitcoin). The Lightning Network relies moreover on Bitcoin transactions (or those of another blockchain) to track control of funds. -Payment:: When value is exchanged on the Lightning Network we call this a payment as the term Transaction is the technical term for entries on the Bitcoin Blockchain. +Payment:: When value is exchanged on the Lightning Network we call this a "payment" as compared to a "transaction" on the Bitcoin Blockchain. Payment Channel:: A _financial relationship_ between two nodes on the Lightning Network, typically implemented by multi-signature Bitcoin transactions that share control over bitcoin between the two Lightning nodes. +Routing vs Sending:: Unlike Bitcoin where transactions are "sent" by broadcasting them to everyone, Lightning is a routed network where payments are "routed" across one or more payment channels following a _path_ from sender to recipient. + On-Chain vs. Off-Chain:: A payment is "on-chain" if it is recorded as a transaction on the Bitcoin (or other underlying) blockchain. Payments sent via payment channels between Lightning nodes, and which are not visible in the underlying blockchain, are called "off-chain" payments. More detailed definitions of these and many other terms can be found in the <>. Throughout this book, we will explain what these concepts mean and how these technologies actually work. diff --git a/02_getting_started.asciidoc b/02_getting_started.asciidoc index e4b3c2f..bdaa4d8 100644 --- a/02_getting_started.asciidoc +++ b/02_getting_started.asciidoc @@ -322,7 +322,7 @@ Alice selects "ACINQ Node" and is ready to open her first channel on the Lightni ==== Opening a Lightning Channel -When Alice selects a node to open a new channel, she is asked to select how much bitcoin she wants to allocate to this channel. In subsequent chapters, we will discuss the implications of these choices, but for now, Alice will allocate almost all her funds to the channel. Since she will have to pay transaction fees to open the channel, she will select an amount a few dollars (or a few thousandths of a bitcoin) less than her total balance. +When Alice selects a node to open a new channel, she is asked to select how much bitcoin she wants to allocate to this channel. In subsequent chapters, we will discuss the implications of these choices, but for now, Alice will allocate almost all her funds to the channel. Since she will have to pay transaction fees to open the channel, she will select an amount slightly less than her total balance footnote:[The Eclair wallet doesn't offer an option to automatically calculate the necessary fees and allocate the maximum amount of funds to a channel, so Alice has to calculate this herself.] Alice allocates 0.018BTC of her 0.020 total to her channel and accepts the default fee rate, as shown in <>. @@ -396,7 +396,7 @@ 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 a payment system that is fast, cheap and decentralized. 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. === Conclusion