Bitcoin Forum
November 08, 2024, 05:49:55 AM *
News: Latest Bitcoin Core release: 28.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Lightning Network Glosary  (Read 127 times)
IBXNetwork (OP)
Newbie
*
Offline Offline

Activity: 42
Merit: 0


View Profile
July 17, 2018, 10:46:25 PM
Last edit: July 18, 2018, 12:46:46 AM by IBXNetwork
 #1

Hi guys. I've been reading some topics of people with doubts about Submarine and atomic swaps, how Lightning works, etc.
I decided to make a small glosary of terms, I hope you like it..

Lightning Network is a decentralized network using smart contract functionality in the blockchain to enable instant payments across a network of participants.

Payment Channel is a communication channel that allows two parties to make many secure payments between each other in exchange for making only a few transactions on the blockchain.

Lightning Node the node is a wallet with one or more open Lightning channels. Should not be confused with a Bitcoin Blockchain Full Node.

Atomic Swaps, or atomic cross-chain trading, is the exchange of one cryptocurrency to another cryptocurrency, without the need to trust a third-party into the Lightning Network. In other words, a user can send bitcoin, and the other user can receive the payment as litecoin.

Submarine swaps exchange off-chain Lightning tokens for on-chain tokens. Essentially, they let users send Lightning payments to a middleman on the Lightning Network; that middleman will send a corresponding amount of bitcoin to a regular (on-chain) Bitcoin address.

Malleability An encryption algorithm is malleable if it is possible to transform a ciphertext into another ciphertext which decrypts to a related plaintext.

Micropayments are a Bitcoin transaction involving a very small sum of money. Lightning enables one to send
funds down to 0.00000001 bitcoin without custodial risk.

Commitment transactions are a pair of asymmetrical transactions that allow multiple users to participate in a single transaction (and thus act as a single entity), using a multi-key system.

Well guys I hope you like this, I gathered info from many websites. Let me know if you want me to add any other concept to this list.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!