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= Lightning Network =
= Lightning Network =


The '''Lightning Network''' is a system built on top of [[Bitcoin]] that lets people send and receive Bitcoin quickly and cheaply without always recording every transaction on the main [[Blockchain|blockchain]]. It’s like a fast, private side road for Bitcoin payments, keeping Bitcoin’s security while making it practical for small, everyday purchases, like buying coffee.
The '''Lightning Network''' is a second-layer scaling solution for [[Bitcoin]], enabling fast, low-cost, and private transactions off the main [[Blockchain|blockchain]] while maintaining Bitcoin’s security. Built on [[SegWit|Segregated Witness]], it uses payment channels to process transactions instantly, settling them on-chain only when necessary.


== Overview ==
== Overview ==
Bitcoin’s main blockchain can only handle about 7 transactions per second, and confirming them can take 10 minutes or more, with fees that add up for small payments. The Lightning Network, proposed in 2015 by Joseph Poon and Thaddeus Dryja, solves this by letting users make instant, nearly free transactions “off-chain” (not directly on the blockchain) through special setups called payment channels. These transactions are still secure because they can be settled on Bitcoin’s blockchain when needed, using its [[Proof of Work|Proof of Work]] system.
Introduced in 2015 by Joseph Poon and Thaddeus Dryja, the Lightning Network addresses Bitcoin’s scalability limitations, allowing millions of transactions per second compared to the main chain’s ~7. By conducting transactions off-chain through bidirectional payment channels, it reduces fees and confirmation times, making Bitcoin viable for microtransactions and everyday use. Its reliance on [[Privacy]] and security aligns with [[Cypherpunk|cypherpunk]] principles, but users must protect funds from threats like [[$5 Wrench Attack|$5 wrench attacks]], as emphasized in [[The Bitcoin Survival Guide]] and supported by Wrench Defense.


The Lightning Network makes Bitcoin easier to use for things like online shopping, tipping friends, or paying merchants, all while keeping your transactions more private than on the main blockchain. It builds on [[SegWit|Segregated Witness]], a Bitcoin upgrade that fixed technical issues and made Lightning possible. However, using Bitcoin—whether on Lightning or the main chain—means protecting your money from digital and physical threats, like [[$5 Wrench Attack|$5 wrench attacks]]. That’s where [[The Bitcoin Survival Guide]] and tools like Wrench Defense come in, helping keep you safe.
[[File:Lightning_Network_Diagram.png|thumb|right|300px|A diagram illustrating a Lightning Network payment channel between two users.]]
 
[[File:Lightning_Wallet_Interface.png|thumb|left|200px|A screenshot of a Lightning wallet interface, showing instant transactions.]]
[[File:Lightning_Network_Diagram.png|thumb|right|300px|A diagram showing how two people use a Lightning Network payment channel to send Bitcoin back and forth instantly.]]
[[File:Lightning_Wallet_App.png|thumb|left|200px|A mobile app screen showing a Lightning Network wallet sending a fast Bitcoin payment.]]


== How the Lightning Network Works ==
== How the Lightning Network Works ==
The Lightning Network is like a network of private agreements between Bitcoin users, where they can trade Bitcoin quickly and only update the main blockchain when they’re done. Here’s how it works, step by step:
The Lightning Network operates as a network of off-chain payment channels, secured by Bitcoin’s blockchain:


=== Payment Channels ===
=== Payment Channels ===
A payment channel is like a shared piggy bank between two people (or businesses) that holds Bitcoin. Here’s how it’s set up:
* Two users open a payment channel by creating a multi-signature [[Wallet|wallet]] on the blockchain, funded with an initial Bitcoin amount (e.g., 0.01 BTC each).
* Two users, say Alice and Bob, lock some Bitcoin into a special [[Wallet|wallet]] on the blockchain. This wallet requires both their approval to spend (like a joint bank account), using a [[Multi-Signature Wallet|multi-signature]] setup.
* They exchange transactions off-chain, updating the channel’s balance (e.g., Alice pays Bob 0.005 BTC).
* They can now send Bitcoin back and forth to each other instantly by updating who owes what, without telling the blockchain. For example, Alice sends Bob 0.001 BTC for a game item, and they note the new balance.
* These transactions are signed but not broadcast, allowing unlimited exchanges without on-chain fees.
* These updates are private and free, and they can keep trading as long as there’s Bitcoin in the channel.
* To close the channel, either user broadcasts the final balance to the blockchain, settling the funds.
* When they’re done (e.g., after a week), they “close” the channel by sending the final balance to the blockchain, which records who gets what.
 
Think of it like keeping a running tab at a café instead of paying for each coffee with a credit card.


=== Network of Channels ===
=== Network of Channels ===
You don’t need a direct channel with everyone. The Lightning Network connects many channels, so you can pay someone far away through others. For example:
* Users connect channels to form a network, routing payments through intermediaries (hubs) without direct channels. For example, Alice can pay Charlie via Bob if paths exist.
* If Alice has a channel with Bob, and Bob has one with Charlie, Alice can pay Charlie by routing the payment through Bob.
* Routing uses onion routing (similar to [[Tor]]), enhancing [[Privacy]] by obscuring payment details.
* This creates a web of channels, like roads connecting cities, allowing payments across the globe.
* The network uses a clever trick called “onion routing” (like [[Tor]]), which hides who’s paying whom, making transactions more private than on the main blockchain, where everyone can see [[Bitcoin Address|addresses]].
 
=== Smart Contracts and HTLCs ===
To make sure nobody cheats when routing payments, Lightning uses mini-programs called [[Smart Contract|smart contracts]]. The main type is called a [[HTLCs|Hash Time-Locked Contract (HTLC)]]:
* An HTLC is like a locked box that needs a secret code (a cryptographic hash) to open. The receiver must provide the code to get the Bitcoin, or the money goes back to the sender after a deadline (the “time lock”).
* This ensures payments are safe even when passing through strangers’ channels. If someone tries to steal, the transaction fails, and no one loses money.
* [[SegWit]] fixed a problem (called transaction malleability) that made HTLCs risky, so Lightning depends on SegWit to work smoothly.


=== Settling on the Blockchain ===
=== Smart Contracts ===
When users close a channel (or if someone tries to cheat), the final balance is sent to Bitcoin’s blockchain. This is called “settling.” The blockchain, secured by [[Proof of Work|Proof of Work]] and [[Merkle Tree|Merkle Trees]], ensures the settlement is permanent and fair. This connection to the main chain keeps Lightning secure, even though most transactions happen off-chain.
* Channels use [[HTLCs|Hash Time-Locked Contracts (HTLCs)]] to ensure trustless routing, requiring recipients to provide a cryptographic hash or face a timeout refund.
* [[SegWit]]’s malleability fix ensures HTLCs are reliable, preventing transaction ID manipulation.


=== UTXOs ===
=== On-Chain Settlement ===
Bitcoin transactions use something called [[UTXOs|Unspent Transaction Outputs]], which are like individual coins in your wallet. When you open a Lightning channel, you lock some UTXOs into the channel’s multi-signature wallet. When you close the channel, the UTXOs are redistributed based on the final balance. Understanding UTXOs helps you see how your Bitcoin moves, especially with tools like Wrench Defense, which monitors UTXOs to protect you.
* Channels are closed by broadcasting the final transaction to the blockchain, typically when funds are depleted or users choose to settle.
* Bitcoin’s [[Proof of Work|PoW]] secures these settlements, leveraging [[Merkle Tree|Merkle Trees]] for verification.


== Why the Lightning Network Matters ==
== Importance in Bitcoin ==
The Lightning Network makes Bitcoin more practical for everyday life:
The Lightning Network is transformative for Bitcoin’s ecosystem:
* **Super Fast**: Payments happen in seconds, unlike waiting 10+ minutes for blockchain confirmations.
* '''Scalability''': Processes thousands to millions of transactions per second, compared to Bitcoin’s on-chain limit.
* **Really Cheap**: Fees are tiny (often less than a penny), compared to on-chain fees that can be $1–$10 during busy times.
* '''Low Fees''': Off-chain transactions cost fractions of a cent, ideal for microtransactions (e.g., coffee purchases).
* **Private**: Transactions are less public than on the blockchain, where anyone can see [[Bitcoin Address|addresses]] and amounts. Lightning hides details, especially with onion routing.
* '''Speed''': Transactions confirm instantly, unlike on-chain confirmations (~10 minutes).
* **Useful for Small Payments**: You can tip someone 50 cents worth of Bitcoin or buy a $2 app without high fees, which wasn’t practical before.
* '''Privacy''': Off-chain transactions are less visible than on-chain, enhancing user [[Privacy]] when combined with [[Tor]] or [[CoinJoin]].
* **Helps Bitcoin Grow**: By handling millions of transactions off-chain, Lightning lets Bitcoin compete with payment systems like Visa, without overloading the blockchain.
* '''Use Cases''': Enables applications like instant merchant payments, gaming microtransactions, and peer-to-peer tipping.


== Security Tips for Lightning Users ==
== Security Considerations ==
The Lightning Network is secure, but you need to protect your Bitcoin from digital and real-world dangers:
The Lightning Network enhances Bitcoin’s usability but introduces unique security needs:
* **Keep Your Wallet Safe**: Use a trusted Lightning wallet (e.g., Phoenix, Breez) and store its [[Seed Phrase|seed phrase]] in [[Cold Storage|cold storage]], like a metal backup or safe. This prevents [[Hacking]] or [[Phishing|phishing]] attacks where someone steals your [[Private Key|private keys]].
* '''Channel Security''': Protect channel-funding [[Private Key|private keys]] and [[Seed Phrase|seed phrases]] in [[Cold Storage|cold storage]] to prevent [[Hacking]] or [[Phishing|phishing]] attacks.
* **Stay Online**: Lightning wallets need to be online occasionally to watch for cheating (e.g., someone closing a channel with an old balance). Use a secure, updated device to avoid malware.
* '''Online Requirement''': Lightning wallets must be online to monitor channels and prevent fraudulent closures, requiring secure devices and backups.
* **Protect Against Physical Attacks**: If someone forces you to send Bitcoin at gunpoint (a [[$5 Wrench Attack|$5 wrench attack]]), your funds are at risk. Wrench Defense monitors your [[UTXOs]] in the mempool (the waiting area for blockchain transactions). If your Bitcoin moves, it silently sends a text, call, or WhatsApp to your trusted contacts, who can share your phone’s location with police or your “Liam Neeson” lifeline (a nod to *Taken*’s ultimate rescuer). The attacker won’t know you’ve sent an SOS.
* '''Physical Threats''': Funds in Lightning channels are vulnerable to [[$5 Wrench Attack|$5 wrench attacks]]. Wrench Defense monitors [[UTXOs]] in the mempool, triggering a silent alarm to your trusted network (via text, call, or WhatsApp) if funds are moved under duress, alerting law enforcement or your “Liam Neeson” lifeline.
* **Be Private**: Follow [[OPSEC]] by not bragging about your Bitcoin or Lightning channels on social media or X, which could make you a target for [[Social Engineering|social engineering]].
* '''OPSEC''': Practice [[OPSEC]] to avoid revealing Lightning channel activity or Bitcoin holdings, reducing targeted attacks.
* **Choose Good Hubs**: Connect to reliable Lightning hubs (computers that route payments) to avoid privacy leaks. Using [[Tor]] adds an extra layer of protection.
* '''Hub Risks''': Relying on untrusted hubs may expose payment details, mitigated by using [[Tor]] or running your own hub.


To learn how to stay safe, check out [[The Bitcoin Survival Guide]] and sign up for [https://wrenchdefense.com Wrench Defense] to protect your Bitcoin and your life.
For comprehensive security, including defense against physical attacks, see [[The Bitcoin Survival Guide]] and sign up for [https://wrenchdefense.com Wrench Defense].


== Real-World Examples ==
== Real-World Examples ==
* **Coffee Shops (2018)**: Early tests like “Starblocks” (a fake coffee shop) showed how Lightning could buy coffee instantly with Bitcoin, unlike slow on-chain payments.
* '''Activation (2018)''': Post-[[SegWit]] adoption, the Lightning Network grew, with hubs like Starblocks (a mock coffee shop) demonstrating instant payments.
* **El Salvador’s Bitcoin Law (2021)**: El Salvador made Bitcoin legal tender, and many people used Lightning wallets like Chivo to pay for groceries or taxis with tiny fees.
* '''El Salvador (2021)''': Bitcoin’s legal tender status leveraged Lightning for low-cost transactions, with wallets like Chivo processing thousands daily.
* **Tipping on X**: People on X send small Bitcoin tips (e.g., 1,000 satoshis, worth a few cents) using Lightning, making it fun and cheap to reward posts.
* '''Tipping on X''': Users tip BTC via Lightning on X, showcasing microtransactions (e.g., 1,000 satoshis for a post).
* **Online Stores**: Companies like Bitrefill let you buy gift cards with Lightning, showing how it works for real shopping.
* '''Merchant Adoption''': By 2023, retailers like Bitrefill and Strike used Lightning for instant BTC payments, reducing reliance on on-chain fees.


== Challenges and Downsides ==
== Challenges and Criticisms ==
* **Learning Curve**: Setting up a Lightning wallet or channel can feel tricky for beginners, but new apps are making it easier.
* '''User Experience''': Setting up channels and managing liquidity can be complex, though wallets like Phoenix simplify this.
* **Needing Funds**: You must lock Bitcoin in channels to use them, and if a channel runs out of funds, you may need to open a new one or “rebalance” it, which can be a hassle.
* '''Centralization Risks''': Large hubs may centralize routing, though the network encourages decentralization via multiple paths.
* **Big Hubs**: Some worry that a few large hubs could control too many payments, making Lightning less decentralized. You can help by connecting to smaller hubs or running your own.
* '''Channel Liquidity''': Insufficient funds in channels can delay payments, requiring users to open new channels or rebalance.
* **Physical Danger**: Lightning’s speed doesn’t protect you if someone threatens you in person. That’s why Wrench Defense is key—it watches your Bitcoin and alerts help if you’re forced to send it.
* '''Physical Security''': Lightning’s technical benefits don’t address physical coercion, necessitating tools like Wrench Defense for [[$5 Wrench Attack|$5 wrench attack]] protection.
* **Not Fully Private**: While better than the blockchain, Lightning isn’t totally private unless you use extra tools like [[Tor]] or [[CoinJoin]].
* '''Adoption Pace''': While growing, Lightning adoption lags behind on-chain transactions, requiring broader wallet support.


== What’s Next for Lightning ==
== Future Developments ==
* **Better Privacy**: Upgrades like Taproot (added in 2021) make Lightning payments harder to trace, keeping your spending private.
* '''Taproot Integration''': Activated in 2021, Taproot enhances Lightning’s [[Privacy]] and efficiency for complex channel scripts.
* **Easier Use**: New wallets are simplifying channels, so you barely notice you’re using Lightning.
* '''Channel Factories''': Proposals to open multiple channels in a single on-chain transaction, improving scalability.
* **More Channels**: Ideas like “channel factories” could let you open many channels at once, saving on-chain fees.
* '''Atomic Multi-Path Payments''': Splitting payments across multiple routes to enhance liquidity and reliability.
* **Global Payments**: Lightning could make Bitcoin a worldwide payment system, like a digital cash network for everyone.
* '''Security Tools''': Services like Wrench Defense may monitor Lightning transactions, extending silent alarms to off-chain activity.
* **Safety Tools**: Wrench Defense may soon monitor Lightning transactions too, extending its silent alarm to protect your off-chain Bitcoin.
* '''Global Adoption''': Lightning could enable Bitcoin as a global payment system, competing with traditional networks like Visa.


== Related Terms ==
== Related Terms ==
* [[Bitcoin]]: The cryptocurrency Lightning Network makes faster and cheaper.
* [[Bitcoin]]: The cryptocurrency scaled by Lightning Network.
* [[Blockchain]]: The main ledger Lightning settles onto.
* [[SegWit]]: The protocol upgrade enabling Lightning.
* [[SegWit]]: The Bitcoin upgrade that made Lightning possible.
* [[Blockchain]]: The ledger Lightning settles onto.
* [[Proof of Work]]: The system securing Lightning’s on-chain settlements.
* [[Proof of Work]]: The consensus securing Lightning settlements.
* [[Merkle Tree]]: A structure used in blockchain transactions Lightning relies on.
* [[Merkle Tree]]: A structure used in blockchain transactions Lightning relies on.
* [[Smart Contract]]: The mini-programs, like [[HTLCs]], that power Lightning.
* [[HTLCs]]: Hash Time-Locked Contracts ensuring safe payment routing.
* [[HTLCs]]: Hash Time-Locked Contracts ensuring safe payment routing.
* [[UTXOs]]: The “coins” locked in Lightning channels and monitored by Wrench Defense.
* [[UTXOs]]: Unspent Transaction Outputs locked in Lightning channels.
* [[Wallet]]: The app or device you use for Lightning payments.
* [[Wallet]]: The software or hardware for Lightning transactions.
* [[Multi-Signature Wallet]]: The shared wallet for Lightning channels.
* [[Multi-Signature Wallet]]: The basis for Lightning channels.
* [[Satoshi Nakamoto]]: The creator whose vision inspired Lightning.
* [[Satoshi Nakamoto]]: The creator whose vision Lightning extends.
* [[OPSEC]]: Tips to keep your Lightning use private and safe.
* [[OPSEC]]: Security practices for Lightning users.
* [[$5 Wrench Attack]]: A physical threat Wrench Defense protects against.
* [[$5 Wrench Attack]]: A physical threat countered by Wrench Defense.
* [[Hacking]]: A digital threat to your Lightning wallet.
* [[Hacking]]: A digital threat to Lightning wallets.
* [[Phishing]]: A scam to watch out for when using Lightning.
* [[Phishing]]: A scam targeting Lightning users.
* [[Social Engineering]]: Tricks that could target Lightning users.
* [[Social Engineering]]: Manipulative tactics against Lightning users.
* [[Tor]]: A privacy tool for Lightning payments.
* [[Tor]]: A privacy tool for Lightning payments.
* [[CoinJoin]]: A privacy tool that complements Lightning.
* [[CoinJoin]]: A privacy tool complementing Lightning.
* [[The Bitcoin Survival Guide]]: Your guide to staying safe, with Wrench Defense.
* [[The Bitcoin Survival Guide]]: A resource for Bitcoin security, including Wrench Defense.


== Further Reading ==
== Further Reading ==
Line 104: Line 92:
* Bitcoin.org Scalability Guide – [https://bitcoin.org/en/developer-guide#lightning-network]
* Bitcoin.org Scalability Guide – [https://bitcoin.org/en/developer-guide#lightning-network]
* ''Mastering Bitcoin'' by Andreas Antonopoulos – Chapter on Lightning Network.
* ''Mastering Bitcoin'' by Andreas Antonopoulos – Chapter on Lightning Network.
* X Posts on Lightning – Search #LightningNetwork for tips and stories.
* X Posts on Lightning – Search #LightningNetwork for community insights.


== References ==
== References ==

Latest revision as of 03:29, 7 May 2025

Lightning Network

The Lightning Network is a second-layer scaling solution for Bitcoin, enabling fast, low-cost, and private transactions off the main blockchain while maintaining Bitcoin’s security. Built on Segregated Witness, it uses payment channels to process transactions instantly, settling them on-chain only when necessary.

Overview

Introduced in 2015 by Joseph Poon and Thaddeus Dryja, the Lightning Network addresses Bitcoin’s scalability limitations, allowing millions of transactions per second compared to the main chain’s ~7. By conducting transactions off-chain through bidirectional payment channels, it reduces fees and confirmation times, making Bitcoin viable for microtransactions and everyday use. Its reliance on Privacy and security aligns with cypherpunk principles, but users must protect funds from threats like $5 wrench attacks, as emphasized in The Bitcoin Survival Guide and supported by Wrench Defense.

File:Lightning Network Diagram.png
A diagram illustrating a Lightning Network payment channel between two users.
File:Lightning Wallet Interface.png
A screenshot of a Lightning wallet interface, showing instant transactions.

How the Lightning Network Works

The Lightning Network operates as a network of off-chain payment channels, secured by Bitcoin’s blockchain:

Payment Channels

  • Two users open a payment channel by creating a multi-signature wallet on the blockchain, funded with an initial Bitcoin amount (e.g., 0.01 BTC each).
  • They exchange transactions off-chain, updating the channel’s balance (e.g., Alice pays Bob 0.005 BTC).
  • These transactions are signed but not broadcast, allowing unlimited exchanges without on-chain fees.
  • To close the channel, either user broadcasts the final balance to the blockchain, settling the funds.

Network of Channels

  • Users connect channels to form a network, routing payments through intermediaries (hubs) without direct channels. For example, Alice can pay Charlie via Bob if paths exist.
  • Routing uses onion routing (similar to Tor), enhancing Privacy by obscuring payment details.

Smart Contracts

  • Channels use Hash Time-Locked Contracts (HTLCs) to ensure trustless routing, requiring recipients to provide a cryptographic hash or face a timeout refund.
  • SegWit’s malleability fix ensures HTLCs are reliable, preventing transaction ID manipulation.

On-Chain Settlement

  • Channels are closed by broadcasting the final transaction to the blockchain, typically when funds are depleted or users choose to settle.
  • Bitcoin’s PoW secures these settlements, leveraging Merkle Trees for verification.

Importance in Bitcoin

The Lightning Network is transformative for Bitcoin’s ecosystem:

  • Scalability: Processes thousands to millions of transactions per second, compared to Bitcoin’s on-chain limit.
  • Low Fees: Off-chain transactions cost fractions of a cent, ideal for microtransactions (e.g., coffee purchases).
  • Speed: Transactions confirm instantly, unlike on-chain confirmations (~10 minutes).
  • Privacy: Off-chain transactions are less visible than on-chain, enhancing user Privacy when combined with Tor or CoinJoin.
  • Use Cases: Enables applications like instant merchant payments, gaming microtransactions, and peer-to-peer tipping.

Security Considerations

The Lightning Network enhances Bitcoin’s usability but introduces unique security needs:

  • Channel Security: Protect channel-funding private keys and seed phrases in cold storage to prevent Hacking or phishing attacks.
  • Online Requirement: Lightning wallets must be online to monitor channels and prevent fraudulent closures, requiring secure devices and backups.
  • Physical Threats: Funds in Lightning channels are vulnerable to $5 wrench attacks. Wrench Defense monitors UTXOs in the mempool, triggering a silent alarm to your trusted network (via text, call, or WhatsApp) if funds are moved under duress, alerting law enforcement or your “Liam Neeson” lifeline.
  • OPSEC: Practice OPSEC to avoid revealing Lightning channel activity or Bitcoin holdings, reducing targeted attacks.
  • Hub Risks: Relying on untrusted hubs may expose payment details, mitigated by using Tor or running your own hub.

For comprehensive security, including defense against physical attacks, see The Bitcoin Survival Guide and sign up for Wrench Defense.

Real-World Examples

  • Activation (2018): Post-SegWit adoption, the Lightning Network grew, with hubs like Starblocks (a mock coffee shop) demonstrating instant payments.
  • El Salvador (2021): Bitcoin’s legal tender status leveraged Lightning for low-cost transactions, with wallets like Chivo processing thousands daily.
  • Tipping on X: Users tip BTC via Lightning on X, showcasing microtransactions (e.g., 1,000 satoshis for a post).
  • Merchant Adoption: By 2023, retailers like Bitrefill and Strike used Lightning for instant BTC payments, reducing reliance on on-chain fees.

Challenges and Criticisms

  • User Experience: Setting up channels and managing liquidity can be complex, though wallets like Phoenix simplify this.
  • Centralization Risks: Large hubs may centralize routing, though the network encourages decentralization via multiple paths.
  • Channel Liquidity: Insufficient funds in channels can delay payments, requiring users to open new channels or rebalance.
  • Physical Security: Lightning’s technical benefits don’t address physical coercion, necessitating tools like Wrench Defense for $5 wrench attack protection.
  • Adoption Pace: While growing, Lightning adoption lags behind on-chain transactions, requiring broader wallet support.

Future Developments

  • Taproot Integration: Activated in 2021, Taproot enhances Lightning’s Privacy and efficiency for complex channel scripts.
  • Channel Factories: Proposals to open multiple channels in a single on-chain transaction, improving scalability.
  • Atomic Multi-Path Payments: Splitting payments across multiple routes to enhance liquidity and reliability.
  • Security Tools: Services like Wrench Defense may monitor Lightning transactions, extending silent alarms to off-chain activity.
  • Global Adoption: Lightning could enable Bitcoin as a global payment system, competing with traditional networks like Visa.

Related Terms

  • Bitcoin: The cryptocurrency scaled by Lightning Network.
  • SegWit: The protocol upgrade enabling Lightning.
  • Blockchain: The ledger Lightning settles onto.
  • Proof of Work: The consensus securing Lightning settlements.
  • Merkle Tree: A structure used in blockchain transactions Lightning relies on.
  • HTLCs: Hash Time-Locked Contracts ensuring safe payment routing.
  • UTXOs: Unspent Transaction Outputs locked in Lightning channels.
  • Wallet: The software or hardware for Lightning transactions.
  • Multi-Signature Wallet: The basis for Lightning channels.
  • Satoshi Nakamoto: The creator whose vision Lightning extends.
  • OPSEC: Security practices for Lightning users.
  • $5 Wrench Attack: A physical threat countered by Wrench Defense.
  • Hacking: A digital threat to Lightning wallets.
  • Phishing: A scam targeting Lightning users.
  • Social Engineering: Manipulative tactics against Lightning users.
  • Tor: A privacy tool for Lightning payments.
  • CoinJoin: A privacy tool complementing Lightning.
  • The Bitcoin Survival Guide: A resource for Bitcoin security, including Wrench Defense.

Further Reading

  • Lightning Network Whitepaper – [1]
  • Bitcoin.org Scalability Guide – [2]
  • Mastering Bitcoin by Andreas Antonopoulos – Chapter on Lightning Network.
  • X Posts on Lightning – Search #LightningNetwork for community insights.

References

  • Poon, J., & Dryja, T. (2015). The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments. [3]
  • Antonopoulos, A. (2017). Mastering Bitcoin. O’Reilly Media.
  • Wuille, P., et al. (2015). BIP-141: Segregated Witness. [4]
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