Bitcoin Lightning Transactions & Protocol Deep Dive

A technical walk-through of the Lightning spec, protocol, and transaction scripts. Including a lightning conceptual overview, protocol and script walk-through, and review of the myriad ways channels can close on-chain when one party of a payment channel stops responding or cheats.

Shorter (21 min) and less technical version: https://youtu.be/yKdK-7AtAMQ

bitcoin/lightning donation address: http://bit.ly/2NldSYA
fiat support: https://www.patreon.com/CuriousInventor

0:00 Lightning Introduction
3:05 Revoking Prior Commitments
9:27 Signature/Revocation Exchange Order
11:48 Revocation Key Derivation
16:28 HTLCs (Hash Time Locked Contracts)
23:45 Messages Sent During Payment (Protocol)
28:32 Full Commitment Transaction Logical Paths
30:46 2nd Stage Txns on HTLC Outputs
34:44 Funding Txn Walk-through
38:58 Commitment Txn Walk-through
47:10 Commitment Txn Unilateral Close Script Walk-through
51:25 Commitment Txn Penalty Txn Script Walk-through
52:20 Commitment Txn w/ HTLCs
56:56 Commitment Txn HTLC Timeout Unilateral Close Script Walk-through
1:04:04 Commitment Txn HTLC Preimage Success Unilateral Close
1:09:55 On-Chain Unilateral / Penalty Close Timeline
1:12:42 Conclusion and References