Reading Assignment: Lightning Basics

Are you ready for a reading assignment?? I hope so :wink: Read through this blog post and answer the following questions. Don’t forget to post your answers in this forum thread.

  1. How many times can you refill your LN channel?
  2. What’s the difference between Advertised and non-advertised channels?
  3. How does Buffer capital work?
  4. What is onion routing?
  1. How many times can you refill your LN channel?
    unlimited as long you have balance or capacity. LN payments are instant (limited only by the speed of the internet) and with sub-satoshi fees being possible.

  2. What’s the difference between Advertised and non-advertised channels?
    none advertising; end users do not advertise” channels by default such as smart phones and may require routing hints for path.
    advertising are nodes whom have route and advertise pathways on more permanent basis.

  3. How does Buffer capital work?
    need an amount of btc in a channel to allow forwarding of a transaction to fulfill an order at the end of the routed path so a balance can be transfered. The Aggregate inflows and outflows across many users so that overall flows to and from a routing node will be and must be balanced. Essentially, within a given period of time, some of a routing node’s users will be spending, while others will be refilling that amount needed is the buffer or BTC required to allow the routing pathway to work.

  4. What is onion routing?
    route using Tor an extra layer of privacy; the actual onion route is the path only knowing the previouse node it come from and the next node in the payment routed path.

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How many times can you refill your LN channel?
As many times as you want.

What’s the difference between Advertised and non-advertised channels?
Advertised channels are available for routing and are visible on the network graph. Non-advertised channels are not available for routing except for when extra routing information (routing hints) are embedded in payment requests.

How does Buffer capital work?
Buffer capital are the amount of funds that a node must maintain so that during periods of inflow / outflow imbalance the node does not become exhausted (run out of funds).

What is onion routing?
A privacy concept that is archived by each intermediate node only knowing the identity of the previous node and the next node in the payment path.

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  1. The Lightning channel can be refilled over and over, but each refill costs an onchain transaction fee.
  2. Advertised channels are routing channels which are visible in the network. Non-advertised channels are typically end users.
  3. “Buffer capital” is the capital for a Lightning node which is need ed to maintain the inflow and outflow of a payment channel.
  4. Onion routing is used in multi-hop payments with intermediate nodes. The intermediate nodes only know the the predecessor and successor in the route.
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