To create a channel on the Lightning Network, do you have to execute an actual transaction?
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 Dec 14 at 18:30
Murch♦
34.5k27112324
asked Dec 14 at 18:01
Dave
21529
add a comment |
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 Dec 14 at 18:30
Murch♦
34.5k27112324
asked Dec 14 at 18:01
Dave
21529
add a comment |
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 Dec 14 at 18:30
Murch♦
34.5k27112324
asked Dec 14 at 18:01
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 Dec 14 at 18:30
Murch♦
34.5k27112324
asked Dec 14 at 18:01
Dave
21529
edited Dec 14 at 18:30
Murch♦
34.5k27112324
asked Dec 14 at 18:01
Dave
21529
edited Dec 14 at 18:30
Murch♦
34.5k27112324
edited Dec 14 at 18:30
Murch♦
34.5k27112324
edited Dec 14 at 18:30
Murch♦
34.5k27112324
34.5k27112324
asked Dec 14 at 18:01
Dave
21529
asked Dec 14 at 18:01
Dave
21529
asked Dec 14 at 18:01
Dave
21529
21529
add a comment |
add a comment |
1 Answer
1
active
oldest
votes
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 Dec 14 at 18:08
James C.
82110
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
Dec 14 at 19:42
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
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
Dec 14 at 20:43
add a comment |
Your Answer
StackExchange.ready(function() {
var channelOptions = {
tags: "".split(" "),
id: "308"
};
initTagRenderer("".split(" "), "".split(" "), channelOptions);
StackExchange.using("externalEditor", function() {
// Have to fire editor after snippets, if snippets enabled
if (StackExchange.settings.snippets.snippetsEnabled) {
StackExchange.using("snippets", function() {
createEditor();
});
}
else {
createEditor();
}
});
function createEditor() {
StackExchange.prepareEditor({
heartbeatType: 'answer',
autoActivateHeartbeat: false,
convertImagesToLinks: false,
noModals: true,
showLowRepImageUploadWarning: true,
reputationToPostImages: null,
bindNavPrevention: true,
postfix: "",
imageUploader: {
brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
allowUrls: true
},
noCode: true, onDemand: true,
discardSelector: ".discard-answer"
,immediatelyShowMarkdownHelp:true
});
}
});
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fbitcoin.stackexchange.com%2fquestions%2f81906%2fto-create-a-channel-on-the-lightning-network-do-you-have-to-execute-an-actual-t%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
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 Dec 14 at 18:08
James C.
82110
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
Dec 14 at 19:42
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
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
Dec 14 at 20:43
add a comment |
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 Dec 14 at 18:08
James C.
82110
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
Dec 14 at 19:42
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
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
Dec 14 at 20:43
add a comment |
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 Dec 14 at 18:08
James C.
82110
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 Dec 14 at 18:08
James C.
82110
answered Dec 14 at 18:08
James C.
82110
answered Dec 14 at 18:08
James C.
82110
answered Dec 14 at 18:08
James C.
82110
82110
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
Dec 14 at 19:42
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
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
Dec 14 at 20:43
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
Dec 14 at 19:42
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
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
Dec 14 at 20:43
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
Dec 14 at 19:42
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
Dec 14 at 19:42
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
Pretty much yeah, 6 confirmations or so ...
– James C.
Dec 14 at 19:45
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
Dec 14 at 20:43
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
Dec 14 at 20:43
add a comment |
Thanks for contributing an answer to Bitcoin Stack Exchange!
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Some of your past answers have not been well-received, and you're in danger of being blocked from answering.
Please pay close attention to the following guidance:
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fbitcoin.stackexchange.com%2fquestions%2f81906%2fto-create-a-channel-on-the-lightning-network-do-you-have-to-execute-an-actual-t%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
