To create a channel on the Lightning Network, do you have to execute an actual transaction?
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I'm trying to better understand the Lightning Network. I was reading this article -- https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e . My question is, when two parties create a channel and one or both commit funds to that channel, is the committing of those funds an actual transaction on the Bitcoin network? That is, can the two parties involved only start using the channel when that transaction has been settled on the Bitcoin network?
transactions lightning-network ln-opening-channels
edited 4 hours ago
Murch♦
34.4k27112323
asked 4 hours ago
Dave
21529
add a comment |
up vote
1
down vote
favorite
I'm trying to better understand the Lightning Network. I was reading this article -- https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e . My question is, when two parties create a channel and one or both commit funds to that channel, is the committing of those funds an actual transaction on the Bitcoin network? That is, can the two parties involved only start using the channel when that transaction has been settled on the Bitcoin network?
transactions lightning-network ln-opening-channels
edited 4 hours ago
Murch♦
34.4k27112323
asked 4 hours ago
Dave
21529
add a comment |
up vote
1
down vote
favorite
up vote
1
down vote
favorite
I'm trying to better understand the Lightning Network. I was reading this article -- https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e . My question is, when two parties create a channel and one or both commit funds to that channel, is the committing of those funds an actual transaction on the Bitcoin network? That is, can the two parties involved only start using the channel when that transaction has been settled on the Bitcoin network?
transactions lightning-network ln-opening-channels
edited 4 hours ago
Murch♦
34.4k27112323
asked 4 hours ago
Dave
21529
I'm trying to better understand the Lightning Network. I was reading this article -- https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e . My question is, when two parties create a channel and one or both commit funds to that channel, is the committing of those funds an actual transaction on the Bitcoin network? That is, can the two parties involved only start using the channel when that transaction has been settled on the Bitcoin network?
transactions lightning-network ln-opening-channels
transactions lightning-network ln-opening-channels
edited 4 hours ago
Murch♦
34.4k27112323
asked 4 hours ago
Dave
21529
edited 4 hours ago
Murch♦
34.4k27112323
asked 4 hours ago
Dave
21529
edited 4 hours ago
Murch♦
34.4k27112323
edited 4 hours ago
Murch♦
34.4k27112323
edited 4 hours ago
Murch♦
34.4k27112323
34.4k27112323
asked 4 hours ago
Dave
21529
asked 4 hours ago
Dave
21529
asked 4 hours ago
Dave
21529
21529
add a comment |
add a comment |
1 Answer
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Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.
The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.
This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.
answered 4 hours ago
James C.
76110
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
add a comment |
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1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
accepted
Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.
The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.
This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.
answered 4 hours ago
James C.
76110
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
add a comment |
up vote
3
down vote
accepted
Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.
The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.
This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.
answered 4 hours ago
James C.
76110
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
add a comment |
up vote
3
down vote
accepted
up vote
3
down vote
accepted
Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.
The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.
This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.
answered 4 hours ago
James C.
76110
Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.
The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.
This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.
answered 4 hours ago
James C.
76110
answered 4 hours ago
James C.
76110
answered 4 hours ago
James C.
76110
answered 4 hours ago
James C.
76110
76110
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
add a comment |
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Thanks for this clarification. So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
– Dave
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Pretty much yeah, 6 confirmations or so ...
– James C.
3 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: bitcoin.stackexchange.com/q/79580/63872
– chytrik
2 hours ago
add a comment |
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