Lightning Integration in Electrum
Thomas Voegtlin
thomasv@electrum.org
Presenter Notes
Electrum (2011)
You own the keys.
Safe: Deterministic
Lightweight: Client-server architecture
Simple Payment Verification (SPV)
Presenter Notes
Merkle trees
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Simple Payment Verification
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On-chain payments
Features
The blockchain is shared among all participants
Trustless (if you are a full node)
Decentralised: Censorship resistant
Limitations
Does not scale (every node sees every payment)
Long confirmation times
Tx fees, no micropayments
Presenter Notes
The Lightning Network
Payments are instant and trustless
Scales well. No tx rate limitation
Presenter Notes
Payment channels (1)
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Payment channels (2)
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Reversible payments (1)
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Reversible payments (2)
Presenter Notes
Chaining payments
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Hash-timed Lock Contracts
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Lightning Network Summary
Need to be online to receive a payment
Trustless, but you need to watch your channels
Routing, liquidity
Presenter Notes
Lightning integration in Electrum
Presenter Notes
The SPV Trust Model
Server cannot show you fake payments (proof of correctness)
Server can lie by omission (no proof of completeness)
Presenter Notes
Proof of completeness
UTXO commitments [soft fork]
Merkle tree of the UTXO set
root hash commited to blocks
Client-side block filtering (BIP 157, BIP158)
Full nodes build a filter for each block
client requests filters, downloads blocks that match
if nodes disagree, binary search
Verifiable transifions
UTXO set hash, not commited to blocks
Client can request proof of transitions between blocks
If nodes disagree, binary search
Presenter Notes
Watchtower
Proof of completeness is not enough
We cannot expect users to watch their channels
Delegate breach remedy to 3rd party
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Watchtower models and incentives
Private
WT knows about your channels
Can charge a monthly subscription
Public
WT does not know you, unless there is a breach
WT is paid on breach
Presenter Notes
Thank you
Presenter Notes
Table of Contents
Table of Contents
Lightning Integration in Electrum
Thomas Voegtlin
thomasv@electrum.org
1
Electrum (2011)
2
Merkle trees
3
Simple Payment Verification
4
On-chain payments
5
The Lightning Network
6
Payment channels (1)
7
Payment channels (2)
8
Reversible payments (1)
9
Reversible payments (2)
10
Chaining payments
11
Hash-timed Lock Contracts
12
Lightning Network Summary
13
Lightning integration in Electrum
14
The SPV Trust Model
15
Proof of completeness
16
Watchtower
17
Watchtower models and incentives
18
Thank you
19
Help
Help
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