lightningwiki.net - User contributions [en]

BOLTs

2019-01-30T19:36:33Z

5.196.1.129: admin: please also have the term "BOLT" redirect to this page

These Basis of Lightning Technology (BOLT) documents describe a layer-2 protocol for off-chain Bitcoin or Litecoin transfer by mutual cooperation, relying on on-chain transactions for enforcement if necessary. They are like RFC's for the Lightning Network.

=Introduction=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/00-introduction.md Source]
[https://github.com/lightningnetwork/lightning-rfc GitHib has the BOLTs]

{{TODO|Read more introduction on BOLTs}}

=BOLT 1: Base Protocol=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/01-messaging.md Find the BOLT on GitHub]

=BOLT 2: Peer Protocol for Channel Management=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/02-peer-protocol.md Find the BOLT on GitHub]

=BOLT 3: Bitcoin Transaction and Script Formats=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/03-transactions.md Find the BOLT on GitHub]

=BOLT 4: Onion Routing Protocol=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/04-onion-routing.md Find the BOLT on GitHub]

=BOLT 5: Recommendations for On-chain Transaction Handling=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/05-onchain.md Find the BOLT on GitHub]

=BOLT 7: P2P Node and Channel Discovery=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/07-routing-gossip.md Find the BOLT on GitHub]

=BOLT 8: Encrypted and Authenticated Transport=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/08-transport.md Find the BOLT on GitHub]

=BOLT 9: Assigned Feature Flags=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/09-features.md Find the BOLT on GitHub]

=BOLT 10: DNS Bootstrap and Assisted Node Location=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/10-dns-bootstrap.md Find the BOLT on GitHub]

=BOLT 11: Invoice Protocol for Lightning Payments=
[https://github.com/lightningnetwork/lightning-rfc/blob/master/11-payment-encoding.md Find the BOLT on GitHub]

Side-chain

2019-01-30T19:33:40Z

5.196.1.129: fixed 2 typos (removed 2 spaces)

The Lightning Network is usually implemented as a Layer-2, sitting on top of a Layer-1. Lightning is currently implemented for the layer-1 blockchains of [[ Bitcoin ]] and [[Litecoin]]. [[ BOLT ]] compliant implementations (e.g. [[ Lnd ]], [[Eclair]]) use [[ On-chain transactions ]] and do not have their only coin(s).

In contrast to the typical Lightning Network implementation exist other implementations such as [[ Liquid ]] by [[ Blockstream ]] that implement Lightning functionality as a Side-chain. Being a side chain, these implementations have their own coins and can even create a multitude of their own tokens.

See also [[Cross-chain]] implementations.

= References =
* [https://blockstream.com Blockstream]
* [https://blockstream.com/liquid Liquid] enterprise product using Lightning as a side-chain
* [https://bitcoinmagazine.com/articles/blockstream-breaks-japanese-market-jpy-stablecoin-partnership/ JPY stable coin as token on Liquid side-chain]

Side-chain

2019-01-30T19:30:07Z

5.196.1.129: new page explaining Side-chains

The Lightning Network is usually implemented as a Layer-2, sitting on top of a Layer-1. Lightning is currently implemented for the layer-1 blockchains of [[ Bitcoin ]] and [[ Litecoin ]]. [[ BOLT ]] compliant implementations (e.g. [[ Lnd ]], [[ Eclair ]]) use [[ On-chain transactions ]] and do not have their only coin(s).

In contrast to the typical Lightning Network implementation exist other implementations such as [[ Liquid ]] by [[ Blockstream ]] that implement Lightning functionality as a Side-chain. Being a side chain, these implementations have their own coins and can even create a multitude of their own tokens.

= References =
* [https://blockstream.com Blockstream]
* [https://blockstream.com/liquid Liquid] enterprise product using Lightning as a side-chain
* [https://bitcoinmagazine.com/articles/blockstream-breaks-japanese-market-jpy-stablecoin-partnership/ JPY stable coin as token on Liquid side-chain]

On-chain transactions

2019-01-30T19:17:43Z

5.196.1.129: added more details, explained that Bitcoin is not the only blockchain for which LN exists

This page lists and explains the transactions broadcast and processed by the Layer-1 [[ blockchain ]]. Currently Lightning implementations exist for the [[ Bitcoin ]] and [[ Litecoin ]] Layer-1 chains. But in the future Lightning implements might exist for many crypto currencies or blockchains. [[ On-chain ]] transactions refer to transactions permanently written to the Layer-1 blockchain (e.g. Bitcoin blockchain).

On-chain transactions are (much) slower than Lightning payments (payment transactions), since you have to wait for [[Bitcoin]] block confirmation. Payments on the Lightning Network are off-chain, i.e. they are not written to the Layer-1 blockchain.

To distinguish, operations on the Layer-1 blockchain are often referred to as [[ transaction ]] and operations on the Lightning Network as [[ payments ]].

Note, there are also concepts like [[ Cross-chain ]] transactions and [[ Side-chain ]] transactions which are not discussed on this page.

= Funding Transaction =
The Funding Transaction creates the channel. During this stage, funds are sent into a multisig address controlled by both Alice and Bob, the counterparties to the channel. This address can be funded as a single-payer channel or by both Alice and Bob.

= Commitment transaction =
A transaction that spends the funding transaction. Each peer holds the other peer's signature for this transaction, so that each always has a commitment transaction that it can spend. After a new commitment transaction is negotiated, the old one is revoked.

= Closing Transaction =
The Closing Transaction closes the channel. When broadcast, the multisig address spends the funds back to Alice and Bob according to their '''agreed-upon''' channel amount.

A "Closing Transaction" is always the result of a [[Closing channels|Mutual close]].

= "Punishing" transaction =
In the case where either party attempts to defraud the other, a third transaction, which punishes the attacker, will end up being broadcasted on-chain. Let’s investigate how this is possible by the way Lightning does channel updates.

Resources

2019-01-30T18:57:56Z

5.196.1.129: /* Q&A, FAQ */ added reference to FAQ page

= Generic info =
* [[How Lightning Works]]
* [https://en.wikipedia.org/wiki/Lightning_Network Wikipedia]
* [https://lightning.engineering/ Lightning Labs]
* [https://lightning.network lightning.network] summary

= Node info =
{{TODO|Add more node explorers}}
* [https://1ml.com/ 1ML] network overview, statistics, like a Lightning Network explorer
* [https://rompert.com/recksplorer/ Recksplorer], a visual network representation
* [https://gist.github.com/bretton/798ec38165ffabc719d91e0f4f67552d Find all explorers here]

= Mailing lists =
* [https://lists.linuxfoundation.org/mailman/listinfo/lightning-dev lightning-dev]
* [https://bitcoinops.org/en/newsletters OpTech newsletter]

= Chat =
*[https://join.slack.com/t/lightningcommunity/shared_invite/enQtMzQ0OTQyNjE5NjU1LWRiMGNmOTZiNzU0MTVmYzc1ZGFkZTUyNzUwOGJjMjYwNWRkNWQzZWE3MTkwZjdjZGE5ZGNiNGVkMzI2MDU4ZTE LND Developer Slack] (if the link expires, [[Wiki contact|contact me]])
* irc.freenode.net #lnd

= Development =
* [https://dev.lightning.community dev.lightning.community]

= Videos =
{{TODO|Add more videos}}
* [https://www.youtube.com/watch?v=Z7Q0AwbKZX8 Andreas Antonopoulos explains Lightning Network]
* [https://www.youtube.com/user/renepickhardt Rene Pickhardt YouTube Channel] Lightning Video tutorials, building Lightning App
* [https://commons.wikimedia.org/wiki/Category:Lightning_Network wikimedia] Lightning media, videos and PDFs

= Resource Lists, Meta-lists =
* [https://github.com/bcongdon/awesome-lightning-network Awesome list] curated sources

= Wikis =
* [https://lightningwiki.net lightningwiki.net] this site
* [https://en.wikiversity.org/wiki/Lightning_Network wikiversity]

= Q&A, FAQ =
* [[ FAQ ]]
* [https://bitcoin.stackexchange.com/questions/tagged/lightning-network stackexchange]

FAQ

2019-01-30T18:55:08Z

5.196.1.129: added stackexchange

{{TODO|Add your question}}
{{TODO|Add frequently asked questions and their answer(s)}}

= FAQ Lists, FAQ Sites =
* [https://bitcoin.stackexchange.com/questions/tagged/lightning-network stackexchange]

= What is Lightning? =
A way of making quick peer to peer [[Payment|payments]] over the internet, backed by [[Bitcoin]] or another cryptocurrency.

= Can I use it already? / How do I use it? =
Yes, just choose a [[Wallet]]

= Why would I run a node? =
Because it is cool, and you [[Making money using Lightning|get some fees]] for routing.

= Is running a node dangerous? =
Yes. Your funds are on a hot wallet, connected to the internet. Think about security.

= Why is my balance changing without me sending or receiving transactions? =
There are several possibilities, it could be you are accumulating fees for routing transactions. You can check this with 'lncli feereport'

Another likely possibility is [[Fees|commit fee renegotiation]]. PR's in lnd relevant to this issue:
* [https://github.com/lightningnetwork/lnd/pull/2075 "contractcourt: settle invoice when claiming HTLC on-chain"]
* [https://github.com/lightningnetwork/lnd/pull/2265 "htlcswitch: reliable HTLC tracking"]
* [https://github.com/lightningnetwork/lnd/pull/2440 "Extend ListPayments response by original invoice memo "]
* [https://github.com/lightningnetwork/lnd/pull/2473 "lnrpc+rpc: add initiator field to listchannels"]

= How can I make money using Lightning? =
[[Making money using Lightning]]

Resources

2019-01-30T18:45:38Z

5.196.1.129: added several resources

= Generic info =
* [[How Lightning Works]]
* [https://en.wikipedia.org/wiki/Lightning_Network Wikipedia]
* [https://lightning.engineering/ Lightning Labs]
* [https://lightning.network lightning.network] summary

= Node info =
{{TODO|Add more node explorers}}
* [https://1ml.com/ 1ML] network overview, statistics, like a Lightning Network explorer
* [https://rompert.com/recksplorer/ Recksplorer], a visual network representation
* [https://gist.github.com/bretton/798ec38165ffabc719d91e0f4f67552d Find all explorers here]

= Mailing lists =
* [https://lists.linuxfoundation.org/mailman/listinfo/lightning-dev lightning-dev]
* [https://bitcoinops.org/en/newsletters OpTech newsletter]

= Chat =
*[https://join.slack.com/t/lightningcommunity/shared_invite/enQtMzQ0OTQyNjE5NjU1LWRiMGNmOTZiNzU0MTVmYzc1ZGFkZTUyNzUwOGJjMjYwNWRkNWQzZWE3MTkwZjdjZGE5ZGNiNGVkMzI2MDU4ZTE LND Developer Slack] (if the link expires, [[Wiki contact|contact me]])
* irc.freenode.net #lnd

= Development =
* [https://dev.lightning.community dev.lightning.community]

= Videos =
{{TODO|Add more videos}}
* [https://www.youtube.com/watch?v=Z7Q0AwbKZX8 Andreas Antonopoulos explains Lightning Network]
* [https://www.youtube.com/user/renepickhardt Rene Pickhardt YouTube Channel] Lightning Video tutorials, building Lightning App
* [https://commons.wikimedia.org/wiki/Category:Lightning_Network wikimedia] Lightning media, videos and PDFs

= Resource Lists, Meta-lists =
* [https://github.com/bcongdon/awesome-lightning-network Awesome list] curated sources

= Wikis =
* [https://lightningwiki.net lightningwiki.net] this site
* [https://en.wikiversity.org/wiki/Lightning_Network wikiversity]

= Q&A, FAQ =
* [https://bitcoin.stackexchange.com/questions/tagged/lightning-network stackexchange]

Tor

2019-01-30T18:26:56Z

5.196.1.129: fixed broken link; LND should automatically point to Lnd, same for lnd. I don't know to do that. Can you as admin do this. LND, L:nd, lnd all should go to the same page.

Lightning should work over tor.

[[c-lightning]] and [[Lnd]] both current support Tor

* [https://github.com/lightningnetwork/lnd/blob/d98d4523e10426c4ce097ecc7ec1ba199a331c60/docs/configuring_tor.md LND instructions]
* [https://github.com/ElementsProject/lightning/blob/master/doc/TOR.md c-lightning instructions]
* [https://medium.com/@meeDamian/c-lightning-node-on-rbp3-b950660fb835 c-lightning tutorial with tor]

= Additional helpful configuration information =
* [https://bitcoin.stackexchange.com/questions/70069/how-can-i-setup-bitcoin-to-be-anonymous-with-tor how can I setup bitcoin to be anonymous with tor?]
* [https://www.reddit.com/r/Bitcoin/comments/5b9z9f/bitcoind_over_tor_a_miniguide_from_personal/ Bitcoin over tor ]

= LND =
Give parameters here. Do you know them? Please add!
<pre>./lnd -h

Tor:
--tor.active Allow outbound and inbound connections to be routed through Tor
--tor.socks= The port that Tor's exposed SOCKS5 proxy is listening on -- NOTE port must be between 1024 and 65535 (default: 9050)

--tor.dns= The DNS server as IP:PORT that Tor will use for SRV queries - NOTE must have TCP resolution enabled (default: soa.nodes.lightning.directory:53)
--tor.streamisolation Enable Tor stream isolation by randomizing user credentials for each connection.
--tor.controlport= The port that Tor is listening on for Tor control connections -- NOTE port must be between 1024 and 65535 (default: 9051)
--tor.v2 Automatically set up a v2 onion service to listen for inbound connections
--tor.v3 Use a v3 onion service to listen for inbound connections
--tor.privatekeypath= The path to the private key of the onion service being created (default: /Users/user/Library/Application Support/Lnd/onion_private_key)
</pre>

= c-lightning parameters =
{{TODO|Add info on c-lightning}}

Exchanges using lightning

2019-01-30T18:23:37Z

5.196.1.129: restructures page, added details to ZigZag

{{TODO|If/when exchanges start accepting/using Lightning, add them here}}

Not many exchange use Lightning yet, but this list will grow.
* [https://zigzag.io Zigzag.io] limit of ~USD120 (Jan 2019), 4 currency pairs (Jan 2019)
* [https://bitcoinmagazine.com/articles/fastbitcoinscom-enables-cash-bitcoin-exchange-lightning-network/ Fastbitcoins]

Shops and services accepting Lightning Payments

2019-01-30T18:18:48Z

5.196.1.129: added merchant list site

{{TODO|Does your shop accept Lightning payments? Add them here!}}

Places where you can buy stuff. [[Services]] have a separate page.
* [https://www.bitrefill.com/vouchers/lightning/ Bitrefill] allows you to buy gift cards
* [https://store.blockstream.com Blockstream] sells stickers, t-shirts and more
* [https://torguard.net/ Torguard] allows you to pay for VPN using Lightning
* [https://www.livingroomofsatoshi.com Livingroom of satoshi.com] allows Australian bills to be paid with Lightning
* [https://cryptoho.st CryptoHO.ST] Virtual Private Server (VPS) Store, where you can buy services with Bitcoin and Lightning Network payments.
* [https://shop.lightning-solutions.eu/en/ Lightning-solutions] store, with NODL node and more

Lists of merchants and places where you can buy stuff or spend Lightning coins:
* [https://lightningnetworkstores.com lightningnetworkstores.com] includes gaming sites, casinos, etc.