FAQ

From lightningwiki.net
Jump to: navigation, search
Hands-helping-solid-with-text.svg
Please help by adding more information. Suggestion:
Add your question. Add frequently asked questions and their answer(s)

FAQ Lists, FAQ Sites, Q&A Sites

What is Lightning?

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?

Yes, just choose a Wallet

Why would I run a node?

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

Does the Lightning node use the bitcoind/btcd wallet

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?

Yes, but it has not a lot of use of course.

Also your node might not be propagated to the graph (and 1ml) if it has no channels.

Is running a node dangerous?

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

What is the exact content of the Funding Transaction?

Hands-helping-solid-with-text.svg
Please 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?

Hands-helping-solid-with-text.svg
Please 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?

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

Hands-helping-solid-with-text.svg
Please 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?

Hands-helping-solid-with-text.svg
Please 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?

Hands-helping-solid-with-text.svg
Please help by adding more information. Suggestion:
Please answer.

What is stored in the Lightning node?

Hands-helping-solid-with-text.svg
Please 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?

Hands-helping-solid-with-text.svg
Please 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 node

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

Hands-helping-solid-with-text.svg
Please 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?

Seed is a BIP39 wallet; you can import that in a separate app and get your on-chain funds back. Please see Static channel backups and Backup for tips on backups.

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

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?

Hands-helping-solid-with-text.svg
Please 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?

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?

Making money using Lightning

Is there any effect to the existing channels if the Node-IP changes?

There is no problem in changing the node IP. Lightning is good at gossiping. Your node will try to connect to your previous peers when it restarts. Channels are not bound to an IP.

How do I properly set up DDNS with http://freedns.afraid.org w/ Raspiblitz ?

The Raspiblitz guide is not very clear. My Router does not have freedns.afraid as an option and if I activate DDNS in the raspiblitz it does not even ask for an user or log in, only for the URL... Channel_ID@IP is unchanged after activation. Within the freedns.afraid side I have created a Subdomain Type A which appears in the Dynamic DNS section as an "update candidate"...

Hands-helping-solid-with-text.svg
Please help by adding more information. Suggestion:
Please answer. What else is publicly visible in this tx?