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FAQ

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You can help by adding more information. Suggestion: Add your question.

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You can help by adding more information. Suggestion: Add frequently asked questions and their answer(s).

Contents

FAQ Lists, FAQ Sites, Q&A SitesEdit

What is Lightning?Edit

A way of making quick peer to peer payments over the internet, backed by Bitcoin or another cryptocurrency.

Can I use it already? / How do I use it?Edit

Yes, just choose a Wallet

Why would I run a node?Edit

Because it is cool, and you get some fees for routing.

Does the Lightning node use the bitcoind/btcd walletEdit

No, Lightning uses it's own wallet. You can run bitcoind without wallet enabled.

Can I run a node without putting funds into the node?Edit

TODO

You can help by adding more information. Suggestion: Please answer.

Is running a node dangerous?Edit

Yes. Your funds are on a hot wallet, connected to the internet. Think about security.

What is the exact content of the Funding Transaction?Edit

TODO

You can help by adding more information. Suggestion: Please answer. What else is publicly visible in this tx?.

It contains or references the address(es) where the funding is coming from. The "who from" so to speak. It contains or references the amount of the funds. The "how much" so to speak. It is also timestamped on the Bitcoin blockchain. This is the "when" so to speak.

What is the exact content of the Closing Transaction?Edit

TODO

You can help by adding more information. Suggestion: Please answer. What else is publicly visible in this tx? If one sees the Closing Tx on the blockchain, can one find the corresponding Funding Tx on the blockchain?.

It contains or references the address(es) where the settled funds are sent to. The "to whom" so to speak. It contains or references the amount of the funds. The "how much" so to speak. It is also timestamped on the Bitcoin blockchain. This is the "when" so to speak.

What is stored inside a wallet?Edit

The wallet stores a private key to the multisig address of the Funding Transaction.

TODO

You can help by adding more information. Suggestion: Please answer. What else is in the wallet? Does the wallet store anything about the payments going back and forth? Where are the payment invoices signed by both parties stored? Is it important to know to which Lightning node my wallet was connected to in the past?.

What happens if I lose my (non-custodial) wallet?Edit

TODO

You can help by adding more information. Suggestion: Please answer. Is the 24-word wallet seed enough to restore the wallet?.

Can I switch the third-party Lightning node configured in my Lightning wallet any time and as frequently as I want? Or is my wallet permanently bound to the Lightning node I selected when I created my Lightning wallet?Edit

TODO

You can help by adding more information. Suggestion: Please answer..

What is stored in the Lightning node?Edit

TODO

You can help by adding more information. Suggestion: Please answer. Is this where the payment invoices signed by both parties are stored?.

Besides payment information the node also stored routing information.

What happens to me as a wallet owner if the third-party Lightning node I used disappears forever?Edit

TODO

You can help by adding more information. Suggestion: Please answer. Are funds lost? Is information about the past invoices lost? How do I know what the last wallet balance was? If I do not use a Watchtower can I be defrauded because the Lightning node went away?.

What information does a Lightning node operator need to restore his/her nodeEdit

If, say, the hard disk gets corrupted? Is stuff gone?

TODO

You can help by adding more information. Suggestion: Please answer. Are funds lost? Is information about the past invoices lost?.

Can I restore my lnd wallet from seed?Edit

Seed is a BIP39 wallet; you can import that in a separate app and get your on-chain funds back.

Does the sum of the funding from the Opening Transaction need to match the sum of the funds from the Closing Transaction?Edit

Say party A and B open a payment channel and each party puts in 1 BTC. A then sends a 1BTC payment to B and B sends a 2 BTC payment to C. Now the channel between A and B is closed. What does the Closing Transaction show? Both A and B settle with 0BTC? 2BTC in the Opening Transaction but 0BTC in the Closing Transaction?

TODO

You can help by adding more information. Suggestion: Please answer. Is this possible? Is this how it works?.

Why is my balance changing without me sending or receiving transactions?Edit

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 commit fee renegotiation. PR's in lnd relevant to this issue:

How can I make money using Lightning?Edit