diff --git a/00-introduction.md b/00-introduction.md index 917730f..bac38f6 100644 --- a/00-introduction.md +++ b/00-introduction.md @@ -25,27 +25,28 @@ This is version 0. ## The Spark: A Short Introduction to Lightning -Lightning is a protocol for fast payments using Bitcoin, using a +Lightning is a protocol for making fast payments with Bitcoin using a network of channels. ### Channels -Lightning works by establishing *channels*: two participants share -custody of some bitcoin (e.g. 0.1 bitcoin), spendable only with both -their signatures. +Lightning works by establishing *channels*: two participants create a +Lightning payment channel that contains some amount of bitcoin (e.g., +0.1 bitcoin) that they've locked up on the Bitcoin network. It is +spendable only with both their signatures. -Initially they each hold a bitcoin transaction which sends all the -bitcoin (e.g. 0.1) back to one party. They can sign a new bitcoin -transaction which splits these funds differently, e.g. 0.09 to one -party, 0.01 to the other, and invalidate the previous bitcoin +Initially they each hold a bitcoin transaction that sends all the +bitcoin (e.g. 0.1 bitcoin) back to one party. They can later sign a new bitcoin +transaction that splits these funds differently, e.g. 0.09 bitcoin to one +party, 0.01 bitcoin to the other, and invalidate the previous bitcoin transaction so it won't be spent. See [BOLT #2: Channel Establishment](02-peer-protocol.md#channel-establishment) for more on -channel establishment and [BOLT #3: Funding Transaction Output](03-transactions.md#funding-transaction-output) for the format of the bitcoin transaction which creates the channel. See [BOLT #5: Recommendations for On-chain Transaction Handling](05-onchain.md) for the requirements when peers disagree or fail, and the cross-signed bitcoin transaction must be spent. +channel establishment and [BOLT #3: Funding Transaction Output](03-transactions.md#funding-transaction-output) for the format of the bitcoin transaction that creates the channel. See [BOLT #5: Recommendations for On-chain Transaction Handling](05-onchain.md) for the requirements when participants disagree or fail, and the cross-signed bitcoin transaction must be spent. ### Conditional Payments -The participants can add a conditional payment to the channel, +A Lightning channel only allows payment between two participants, but channels can be connected together to form a network that allows payments between all members of the network. This requires the technology of a conditional payment, which can be added to a channel, e.g. "you get 0.01 bitcoin if you reveal the secret within 6 hours". Once the recipient presents the secret, that bitcoin transaction is replaced with one lacking the conditional payment and adding the funds @@ -57,8 +58,8 @@ complete format of the bitcoin transaction. ### Forwarding Such a conditional payment can be safely forwarded to another -participant, e.g. "you get 0.01 bitcoin if you reveal the secret -within 5 hours". This allows channels to be chained for payments +participant with a lower time limit, e.g. "you get 0.01 bitcoin if you reveal the secret +within 5 hours". This allows channels to be chained into a network without trusting the intermediaries. See [BOLT #2: Forwarding HTLCs](02-peer-protocol.md#forwarding-htlcs) for details on forwarding payments, [BOLT #4: Packet Structure](04-onion-routing.md#packet-structure) for how payment instructions are transported. @@ -76,7 +77,9 @@ network bootstrap. ### Payment Invoicing -To know what payments to make, [BOLT #11: Invoice Protocol for Lightning Payments](11-payment-encoding.md) presents the protocol for describing the destination and purpose of a payment such that the payer can later prove successful payment. +A participant receives invoices that tell her what payments to make. + +See [BOLT #11: Invoice Protocol for Lightning Payments](11-payment-encoding.md) for the protocol describing the destination and purpose of a payment such that the payer can later prove successful payment. ## Glossary and Terminology Guide