Implementation of the Lightning Network Protocol by the Victoriabased Blockstream. It is written in C.
Implementation of the Lightning Network Protocol by the Victoria-based Blockstream. It is written in C.
Closing Transaction::
If both channel partners agree to close a channel they will create a spent of the funding transaction that reflects the most recent commitment 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 less 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.
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.
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.
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.
In addition to the newly generated coins, 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.
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.
Not to be confused with 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.
@ -123,7 +123,7 @@ Commitment Transaction::
One output also holds a Revocable Sequence Maturity Contract which is made to disincentivize a channel partner to broadcast an old commitment transaction to the Bitcoin network.
This effectively invalidates old commitment transactions.
Broadcasting a commitment transaction forces a unilateral channel close.
Up to 483 Hashed Time Lock Contracts can be stored as additional outputs in the commitment transactions allow the routing of payments.
Up to 483 Hashed Time Lock Contracts can be stored as additional outputs in the commitment transaction to allow the routing of payments.
In order to be able to ascribe blame in the case of unilateral channel closes, each channel partner has a slightly different commitment transaction.
// TODO probably don't explain the difference with the RSMC here
@ -150,7 +150,7 @@ Diffie Hellman Key Exchange::
Digital Signature::
A digital signature is a mathematical scheme for verifying the authenticity of digital messages or documents.
A valid digital signature gives a recipient reason to believe that the message was created by a known sender, that the sender cannot deny having sent the message and that the message was not altered in transit.
A valid digital signature gives a recipient reason to believe that the message was created by a known sender, that the sender cannot deny having sent the message, and that the message was not altered in transit.
They can be seen as cryptographic commitments in which the message is not hidden.
The funding transaction is used to open a payment channel.
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.
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-out-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.
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.
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.
Globalfeatures::
Globalfeatures of a Lightning Network node are the features of interest for all other nodes.
@ -240,12 +240,12 @@ Invoice::
Invoices can also include a fallback Bitcoin address to which the payment can be made in case no route can be found, as well as hints for routing a payment through a private channel.
Lightning Message::
A Lightning message is an encrypted data string that can be send 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 send 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 figure out what messages are being sent by inspecting the length.
Lightning Network::
The Lightning Network is a protocol on top of Bitcoin (or other cryptocurrencies).
It creates a network of payment channels which enables the trustless forwarding of payments through the network with the help of HTLCs and Onion Routing.
Other components of the lightning network are the gossip protocol, the transport layer and payment requests.
Other components of the lightning network are the gossip protocol, the transport layer, and payment requests.
Lightning Network Node::
TBD.
@ -255,7 +255,7 @@ lnd::
It is written in Go.
Localfeatures::
Localfeatures of a Lightning Network node are the features of direct interest of the peer.
Localfeatures of a Lightning Network node are the configurable features of direct interest of the peer.
They are announced in the `_init_` message of the peer protocol as well as the `_channel_announcement_` and `_node_announcement_` messages of the gossip protocol.
Locktime::
@ -268,7 +268,7 @@ Millisatoshi::
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 2 party payment channel a 2-2 multisignature address is used.
In the standard case of a two-party payment channel a 2-2 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 tradeoff for these improvements is that Neutrino requires more data from the full node than SPV.
@ -335,12 +335,12 @@ Penalty Transaction::
Look at the breach remedy transaction.
Preimage::
In mathematics given a function $f$ and a value $h$ the preimage of $h$ with respect to $f$ is the set of values $R = \{r_1,r_2,...\}$ such that $f(r_i) = h$ for all $\r_i \in R$.
In mathematics, given a function $f$ and a value $h$ the preimage of $h$ with respect to $f$ is the set of values $R = \{r_1,r_2,...\}$ such that $f(r_i) = h$ for all $\r_i \in R$.
In layman's terms, it is the set of values which is mapped to $h$ by the function $f$.
This preimage set can be empty, finite or infinite.
In cryptography the function $f$ is usually taken to be a hash function.
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.
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.
Proof-of-Work::
@ -371,16 +371,16 @@ Topology::
The topology of the Lightning Network describes the shape of the Lightning Network as a mathematical graph.
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 broadcasted with the help of the gossip protocol unless nodes decide to act privately.
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.
Knowing the topology is of particular interest in the sourcebased routing process of payments in which the sender discovers a route.
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.
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")))
Satoshi Nakamoto::
Satoshi Nakamoto is the name used by the person or 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.
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.
@ -408,7 +408,7 @@ SHA::
The Secure Hash Algorithm or SHA is a family of cryptographic hash functions published by the National Institute of Standards and Technology (NIST).
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.
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.
The short channel id consists of 8 bytes referring to 3 numbers.
In its serialized form it depicts these 3 numbers as decimal values separated by the letter **x**.
SPV or simplified payment verification is a method for verifying particular transactions were included in a block without downloading the entire block. The method is used by some lightweight Bitcoin clients.
Source-Based Routing::
On the Lightning Network the sender of a payment decides the route of the payment.
On the Lightning Network, the sender of a payment decides the route of the payment.
While this decreases the success rate of the routing process, it increases the privacy of payments.
Due to the SPHINX Mix Format used by the Onion Routing, all routing nodes do not know the originator of a payment or the final recipient.
Source-based routing is fundamentally different to how routing works on the Internet Protocol.
soft fork::
Soft fork or Soft-Forking Change is a temporary fork in the blockchain which commonly occurs when miners using non-upgraded nodes don't follow a new consensus rule their nodes don’t know about.
Soft fork, or Soft-Forking Change, is a temporary fork in the blockchain which commonly occurs when miners using non-upgraded nodes don't follow a new consensus rule their nodes don’t know about.
Not to be confused with fork, hard fork, software fork or Git fork.
Andreas M. Antonopoulos
4 years ago
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