Reading Assignment: Lightning Basics

  1. Unlimited number of times.
  2. Non-advertised channels will be accessible through the use of so called ‘routing hint’ embedded in Lightning payment requests when advertised channels are visible in the network right away.
  3. Sometimes the funds flow more one way than the other and Buffer capital prevents the node from exhausting until the funds start going the opposite way.
  4. Onion routing is a privacy concept where the intermediate node knows only the node before and the node after.
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  1. Unlimited
  2. 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.
  3. Capital in reserve inside the channel
  4. Similar to Tor knowing only who sent you the request and who you forwarded it to.
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  1. Unlimited
  2. Non advertised is not always available, while advertised is put into the network and always online.
  3. For the ingoing and outgoing transactions there must be enough BTC in the channel to handle the transactions.
  4. The nodes only know the sender and receiver on their point. So When the channel consisits of 10 nodes the final node doesn’t know who the original sender is.
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Both nodes are online most of the time. If they are advertised or not only means if they are visible in the network or not :slight_smile:

The endpoints are aware of the sender and receiver, only the intermediate nodes are not aware of that and only know where to forward the request :slight_smile:

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1. How many times can you refill your LN channel?
There is no limit on refilling a channel. It is good to refill rather than to open a new one . This avoid the costs to put it on the blockchain.

2. What’s the difference between Advertised and non-advertised channels?
Basically non advertised are end-users, just receiving the benefits from the LN; Advertised are basically nodes that are moving the funds and must be available online.

3. How does Buffer capital work?
That is basically a reserve of funds from a routing node that is used to speed up the operation when funds on the channels are not available.

4. What is onion routing?
A channel using TOR to add an extra layer of privacy.

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You can refill it as much as many times as you want to

An advertised channel will be like the gateway routing node. The end users how ever with only intermittent internet access will be non advertised on the network so they will not be broadcasted every time they make a small payment.

Nodes need to maintain enough buffer capital sith them for the periods of big imbalance in too much sending or receiving of funds, if nodes to not have enough buffer capital it will need to node exhaustion and routing failures which will lead to that node being disconnected by other nodes, there for people have an incentive to maintain a good amount of buffer capital in their nodes.

The lightning network uses source routing and onion routing to protect users identities and stay censorship resistant.

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