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Merge branch 'develop' into ch1_edits
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aantonop authored Oct 13, 2019
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5 changes: 3 additions & 2 deletions ch01.asciidoc
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Expand Up @@ -11,7 +11,8 @@ Users who transact on the LN are not required to wait for block confirmations fo
Once a payment arrives, it is final and cannot be reversed.
Like a standard Bitcoin transaction, a payment on the LN can only be refunded by the recipient.
While all Bitcoin transactions are stored in the blockchain where they can be tracked, the payments on the LN are off-chain and offer more privacy than on-chain Bitcoin transactions.
Due to the use of onion routing, which is also implemented in The Onion Route (TOR) privacy network, not even the nodes forwarding the payment from sender to recipient can know who the sender or recipient are.

Due to the use of onion routing, an anonymous communication protocol used by The Onion Router (TOR) privacy network, even the nodes involved in a transaction are incapable of identifying the recipient.

=== History of the Lightning Network

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====

Surprisingly both properties took quite some while until the community figured them out.
Technically speaking the unidirectional payment channel has all the important ingreedients (funding transaction to a 2-2 multisignature wallet, a transaction spending from the wallet encoding the balance, a timelock to allow refunding if the other side becomes unresponsive, off chain communication and the fact that no additional trust other than the one in the bitcoin network) of modern payment channels which are used in the LN.
Technically speaking the unidirectional payment channel has all the important ingredients (funding transaction to a 2-2 multisignature wallet, a transaction spending from the wallet encoding the balance, a timelock to allow refunding if the other side becomes unresponsive, off chain communication and the fact that no additional trust other than the one in the bitcoin network) of modern payment channels which are used in the LN.
Despite being rather useless in today's world we will study the unidirectional payment channel in more depth in this book as it is an easy to understand educational example to approach the construction of today's payment channels.
This setup has one safety issue as transactions have been malleable without the segwit upgrade.
A problem that needed to be solved for any payment channel construction that we know up till today and which has been fixed in August 2017.
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2 changes: 1 addition & 1 deletion topics.asciidoc
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Expand Up @@ -181,7 +181,7 @@ Creating Lightning Network Applications:
** concurrent payments in custodial settings
* example lapps
** paywall Example https://github.com/renepickhardt/HackALapp
** streaming example
** streaming example: currently working on a dollar cost averaging (DCA) streaming service to your own custody, that allows one to be able stack sats on lightning network. Will provide links to example soonish.
** more ideas: https://bitcoingames2019.devpost.com/submissions
* btc pay server
* Turbo Channels https://medium.com/@akumaigorodski/instant-channels-enable-safe-lightning-payments-with-unconfirmed-funding-8d640defa183
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