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Removed unnecessary words and made English edits
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Jestopher-BTC authored Jan 14, 2020
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[role="pagenumrestart"]
[[ch03_How_Lightning_Works]]
== How the Lightning Network Works
After you have had your first hand experiences with the Lightning Network and learnt about its most important properties we now want to give you a high level overview of the components that are used to build the Lightning Network.
After you have had your first experiences with the Lightning Network and learned about its most important properties, we now want to give you a high-level overview of the components used to build the Lightning Network.
This overview will not contain all the technical details.
Our goal is rather to help you to become aware of the most important concepts and building blocks.
If you have a lot of experience in computer science, cryptography, Bitcoin and protocol development this chapter should probably be enough for you to be able to fill out the connecting details by yourself.
If you are less experienced this chapter shall give you a good overview so that after reading it you will most likely have a much easier time reading through the rather formal protocol specification which is known as BOLTs (Basics of Lightning Technology).
In case you are a beginner this chapter shall help you to get a better access to the more technical chapters of the book.
That being said we are aware of the fact that some readers might have a hard time following high level descriptions without explaining all the details.
If you are one of those you might very well want to skip this chapter.
Our goal is to show you the most important concepts and building blocks.
If you have experience in computer science, cryptography, Bitcoin and protocol development, this chapter should probably be enough for you to be able to fill in the connecting details by yourself.
If you are less experienced, this chapter should give you a good overview so that you will have an easier time reading through the formal protocol specification, which is known as BOLTs (Basics of Lightning Technology).
In case you're a beginner, this chapter should help you to get better access to the more technical chapters of the book.
That being said, some readers might have a hard time following high-level descriptions without explaining all the details.
If you are one of those you might want to skip this chapter.

Let us start with a one sentence definition of what the Lightning Network (LN) is and break this down in the remainder of this chapter.
Please do not get frustrated if this one sentence does not make sense to you right away or if it seems either too sophisiticated or too trivial.
Expand All @@ -17,7 +17,7 @@ Please do not get frustrated if this one sentence does not make sense to you rig

We will see that payment channels are nothing else than a 2 out of 2 multisignature address on the Bitcoin Network for which you hold a key and your channel partner holds the other key.
This multisignature address comes together with a cryptographic protocol that is established by creating a sequence of transactions that spend from this address.
Those transactions will be negotiated between you and your partner in secret and are attempts to double spend from that multisignature address.
Those transactions will be negotiated between you and your partner in secret and any attempts to double spend from that multisignature address.
The latest transaction of that sequence encodes the balance of your channel and defines how the funds of the multisignature address are to be divided between you and your partner.
The transactions in this sequence make use of the scripting language in Bitcoin.
The design will discourage you and your channel partner from publishing an old (outdated) state about your channel.
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