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North America and Europe Control 88% of All Lightning Network Nodes, Research Finds

As Bitcoin adoption grows more and more, concerns about the need for scalability solutions increase. Lightning Network is the most important layer-two development currently available on the Bitcoin blockchain, and it seems that North Americans are the favorite demographic for this efficiency-focused micropayment solution. The Lightning Network is a layer-two solution currently under development. It focuses on the creation of channels between peers that allow for almost instant and extremely cheap transactions without the need to record it on the blokchain. The money is locked on a wallet in order for it to be available on the Lightning Network, and…

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Settling the invoice/payment in lightning while the other party is unresponsive

Given that Alice wants to pay Bob in the lightning network, Bob first creates an invoice (using the python api) for A as follows: request = invoicesrpc.AddHoldInvoiceRequest(hash=r_hash, value=30000) response_hold_B_to_A = stub.AddHoldInvoice(request, metadata=[('macaroon', macaroon)]) and sent the payment request in response_hold_B_to_A to Alice. Next, Alice sends the payment to Bob as follows: request = routerrpc.SendPaymentRequest(payment_request="<bob_invoice>", timeout_seconds=10000) for resp in stub.SendPaymentV2(request, metadata=[('macaroon', macaroon)]): print(resp) Let say after Alice sends the payment it will go offline, and Bob before the payment time expires releases its preimage of the invoice as follow: request = invoicesrpc.SettleInvoiceMsg(preimage=r_preimage) response = stub.SettleInvoice(request, metadata=[('macaroon', macaroon)]) At this point, if…

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Can we use lnurl-auth to create a better password manager?

LNURL-auth can be used to implement registration/login in a web app in which users don't need username/password or other credentials instead they can just use their LN wallet to login. However cannot be used if the website doesn't support it so can we do this locally for websites using a browser add-on? Right now only few websites support it including LNMarkets I have also created an issue in btcpayserver repository to support it: https://github.com/btcpayserver/btcpayserver/issues/2004 How would LNURL-auth work with a password manager? When you create a new password, the password manager uses the main lnurl-auth key to derive a key…

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Why does the funder send the signed settlement to the counter-party in eltoo?

Quoting from the Eltoo paper: Before signing and broadcasting the funding transaction the funder requires the other endpoint to create an initial settlement transaction that returns the funds back to the funder. The initial settlement transaction spends the funding output, and creates a single output that returns all of the funds to the funder. This settlement transaction is then signed using the settlement key and returned to the funder. The funder verifies that the settlement transaction matches its expectations, i.e., it returns its funds and is signed by the other endpoint. Now the funder can broadcast the funding transaction, and…

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Sats-Earning Platform Carrot Wants To Reward The World In Bitcoin

Of its many potential applications, bitcoin as a medium for rewarding microtasks is one of its most exciting. This implementation takes advantage of the technology’s natively digital qualities, its relative freedom from borders and its high divisibility. Now, with its public beta phase announced today, the sats-earning platform Carrot wants to realize this potential on a new scale.  Carrot is a platform designed for people to earn bitcoin rewards for supporting the projects and brands they love. Creators can list tasks that their supporters are likely undertaking anyway and offer BTC bounties for their completion, all seamlessly paid via the…

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Risks of running lightning (LND) over a pruned node [closed]

Since i don't believe this has been adequately discussed yet; (see What are the issues of running lightning daemon with pruning node? & others) What exactly are the risks of running LND over a pruned node of let's say, 50 gb, which is roughly a year worth of data. Can we: A. Access channels that are older than a year (for routing purposes), and do so in a way that is trustless? B. Accept HTLC's that are routed through channels which are older than a year? It's a bit of a rehash of #1, but what exactly would happen in…

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Chainalysis Wins $625,000 IRS Contract to Track Monero

Is the era of the transparent Monero approaching? The United States government hopes so. After several days of waiting, the IRS finally granted a contract to Chainalysis to develop a tool that will allow authorities to track privacy coins like Monero and second-layer solutions like Lightning Network. Cracking Monero is an Expensive Task According to an official post, Chainalysis won the contract along with Integra FEC LLC, a Texas-based forensic data analysis company, founded in 2012 and focused primarily on the field of traditional finance. As CryptoPotato previously reported, the $625,000 contract seeks, in general terms, to deanonymize the crypto…

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How does circular rebalance work?

How does circular rebalance on LN work? (note: circular rebalance is term used in RTL, I use lnd). Let me describe the situation that happened to me: I have two channels, one with Alice, one with Bob. The situation before circular rebalance from my point of view: Me 200 sats outbound -----[400]----- 200 sats inbound Alice Me 200 sats outbound -----[200]----- 0 sats inbound Bob Then I initiated a circular rebalance of 100 sats on the the second channel with Bob and I was asked to choose "receive from peer" where I chose Alice The situation after the circular rebalance…

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How does circular rebalance on LN work?

How does circular rebalance on LN work? (note: circular rebalance is term used in RTL, I use lnd). Let me describe the situation that happened to me: I have two channels, one with Alice, one with Bob. The situation before circular rebalance from my point of view: Me (200) sats outbound -----[400]----- (200) sats inbound Alice Me (200) sats outbound -----[200]----- (0) sats inbound Bob Then I initiated a circular rebalance of 100 sats on the the second channel with Bob and I was asked to choose "receive from peer" where I chose Alice The situation after the circular rebalance…

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Why the Lightning Network is so underrated

Bitcoin was introduced as digital electronic cash, however, to make it a viable payment system, the network needs faster transaction processing. Currently, the transaction processing time for Bitcoin compared to Visa and Paypal renders it practically useless as a means of payment.  These numbers were obtained from Visa, Paypal, and Bitcoin based on the number […] The post Why the Lightning Network is so underrated appeared first on AMBCrypto.

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Autonomous Loop channel

Can I have an autonomous loop channel with myself where I would suck all excess inbound/outbound capacity to from channels I have with other parties? In such a case, I would not have to even burden Bitcoin blockchain with the looping activity.

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Is the Lightning Network sufficiently secure and well tested for wumbo channels?

Has the Lightning Network reached a level of security and maturity where I can open wumbo channels (channels over the previous 0.1677 BTC limit) and I can be reasonably confident that I won't lose funds or have my funds locked up for absurdly long periods? This question was posed by Joost Jager on Twitter and has been paraphrased.

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Bitfinex supports the Lightning Network’s Wumbo channels

As one of crypto’s early adopters and key players in the industry, Bitfinex is excited about innovations that will help achieve the awaited crypto mass adoption. We are one of the few crypto exchanges that has integrated the Lightning Network on its platform, providing our users with instant Bitcoin deposit and withdrawal capabilities. And we are continuously improving our Lightning Network integration to give more advanced features and capabilities to our users, at the same time, show our support towards the development of the technology.  If you are not familiar with the Lightning Network, you can have a look at…

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LND doesnt create macaroons or directories

I installed lnd and got to the point of creating a wallet with "lncli create" but I get an error "unable to read macaroon path" and gives the path of where the macaroon should be. I believe when you start lnd for the first time it creates these macaroons along with some other files and folders but mine only created tls.cert tls.key logs/bitcoin/mainnet/lnd.log data/graph/mainnet/channel.db And no macaroons. Does anyone know why it would create only some of the files and folders?? Stumped! Running on Ubuntu 20

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IRS to Pay $625K to Crack Monero, Crypto Proponents Scoff at Contract

The U.S. Internal Revenue Service (IRS) wants to pay a contractor $625,000 if they can crack layer-two privacy schemes and the privacy-centric crypto asset monero (XMR). The tax agency says that the entity has “limited investigative resources” for tracing these types of cryptocurrency transactions. The United States tax agency wants to obtain a solution to trace the digital currency monero (XMR), alongside “Layer 2 network protocol transactions” like the Lightning Network. The IRS will distribute $625,000 to “one or more contractors” in two phases; $500k will be distributed after the first proof-of-concept, then another $125k following a full examination and…

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