diff --git a/ch12.asciidoc b/ch12.asciidoc index 3f75fb27..ae19b5fd 100644 --- a/ch12.asciidoc +++ b/ch12.asciidoc @@ -237,7 +237,7 @@ Finally, the channel can be closed either cooperatively, by submitting a final _ In the entire lifetime of the channel, only two transactions need to be submitted for mining on the blockchain: the funding and settlement transactions. In between these two states, the two parties can exchange any number of commitment transactions that are never seen by anyone else, nor submitted to the blockchain. -<> illustrates a payment channel between Bob and Alice, showing the funding, commitment, and settlement transactions. +<> illustrates a payment channel between Bob and Alice, showing the funding, commitment, and settlement transactions.((("use cases", "buying coffee", startref="alicetwelve"))) [[payment_channel]] .A payment channel between Bob and Alice, showing the funding, commitment, and settlement transactions @@ -511,7 +511,7 @@ The Lightning Network implements an onion-routed protocol based on a scheme call * Unlike Tor (an onion-routed anonymization protocol on the internet), there are no "exit nodes" that can be placed under surveillance. The payments do not need to be transmitted to the bitcoin blockchain; the nodes just update channel balances. -Using this onion-routed protocol, Alice wraps each element of the path in a layer of encryption, starting with the end and working backward. She encrypts a message to Eric with Eric's public key. This message is wrapped in a message encrypted to Diana, identifying Eric as the next recipient. The message to Diana is wrapped in a message encrypted to Carol's public key and identifying Diana as the next recipient. The message to Carol is encrypted to Bob's key. Thus, Alice has constructed this encrypted multilayer "onion" of messages. She sends this to Bob, who can only decrypt and unwrap the outer layer. Inside, Bob finds a message addressed to Carol that he can forward to Carol but cannot decipher himself. Following the path, the messages get forwarded, decrypted, forwarded, etc., all the way to Eric. Each participant knows only the previous and next node in each hop. +Using this onion-routed protocol, Alice wraps each element of the path in a layer of encryption, starting with the end and working backward. She encrypts a message to Eric with Eric's public key. This message is wrapped in a message encrypted to Diana, identifying Eric as the next recipient. The message to Diana is wrapped in a message encrypted to Carol's public key and identifying Diana as the next recipient. The message to Carol is encrypted to Bob's key. Thus, Alice has constructed this encrypted multilayer "onion" of messages. She sends this to Bob, who can only decrypt and unwrap the outer layer. Inside, Bob finds a message addressed to Carol that he can forward to Carol but cannot decipher himself. Following the path, the messages get forwarded, decrypted, forwarded, etc., all the way to Eric. Each participant knows only the previous and next node in each hop.((("", startref="alicetwelve"))) Each element of the path contains information on the HTLC that must be extended to the next hop, the amount that is being sent, the fee to include, and the CLTV locktime (in blocks) expiration of the HTLC. As the route information propagates, the nodes make HTLC commitments forward to the next hop.