A
The confirmation of a transaction or message reception within the Lightning Network.
A unique identifier for a payment channel or a node in the Lightning Network.
A conventionally used name to represent one of the participants in a Lightning Network transaction.
Atomic Multipath Payments (AMP) is an implementation of the concept of Multipath Payments (MPP) on the Lightning Network.
A proposal to improve the commitment transaction format by making on-chain fees more flexible.
Application Programming Interface, a set of rules and protocols that allow developers to interact with the Lightning Network.
The layer responsible for the end-to-end communication of data over the Lightning Network.
A feature in some Lightning Network nodes that automates the process of opening and managing channels, aiming to optimize routing and liquidity.
B
The underlying blockchain network, such as Bitcoin, on which the Lightning Network operates.
A method of encoding numbers and letters used in Bitcoin addresses and the Lightning Network.
Payment channels that allow funds to be sent and received in both directions between participants.
A collection of transactions recorded on the base layer blockchain.
A conventionally used name to represent one of the participants in a Lightning Network transaction.
Acronym for "Basis of Lightning Technology," BOLT is a series of documents that define the Lightning Network protocol standards, including channel management, message formats, and routing procedures.
C
A connection between two nodes in the Lightning Network that facilitates transactions.
The distribution of funds between participants in a payment channel.
The maximum amount of funds that can be sent through a payment channel in the Lightning Network. Channel capacity is determined by the amount of bitcoin locked in the channel's multi-signature wallet.
A concept that allows multiple payment channels to be created and managed in a single on-chain transaction.
The process of opening, closing, and updating payment channels in the Lightning Network.
An amount that is set aside by each channel participant which ensures neither have 'nothing at stake' if a cheating attempt occurs.
An off-chain transaction that updates the distribution of funds between participants in a payment channel.
Agreement between nodes in a network to validate and confirm transactions.
Lightspark developed a new summary metric: "conductivity." Analogous to a material's ability to conduct electric current, conductivity, in this context, measures a node's ability to move value efficiently on the Lightning Network. A node with high conductivity needs less capital (i.e. Bitcoin) to perform the same payment operations than a node with low conductivity.
The use of mathematical techniques to secure communication and transactions in digital networks like the Lightning Network.
D
A decentralized data structure used in peer-to-peer networks to store and retrieve data, which could potentially be used to improve the Lightning Network's routing efficiency.
The distribution of control and decision-making power among multiple participants in a network.
A wallet that generates a sequence of private keys and addresses from a single seed.
A fraudulent attempt to spend the same digital asset twice.
E
A proposal to simplify the update mechanism for payment channels in the Lightning Network.
The process of encoding data to prevent unauthorized access.
A third-party service that holds and releases funds in a transaction based on predefined conditions.
F
A standard on-chain Bitcoin address provided alongside a Lightning invoice to ensure the sender can still complete the payment in case of issues with the Lightning Network.
A small amount paid to route transactions through the Lightning Network.
A security deposit used to build trust and discourage malicious behavior in the Lightning Network.
The assurance that a transaction is irreversible and cannot be tampered with.
G
A communication protocol used by Lightning Network nodes to share information about other nodes and channels, enabling efficient routing and overall network health.
A mathematical representation of the connections between nodes in the Lightning Network.
Graphical User Interface, a visual tool that allows users to interact with the Lightning Network.
A data structure used to reduce the size of block propagation messages, potentially speeding up transaction processing in the Lightning Network.
H
A physical device that securely stores a user's private keys, offering an additional layer of security for storing and transacting with cryptocurrencies, including interacting with the Lightning Network.
A type of smart contract used in the Lightning Network to lock funds temporarily, ensuring payment is conditional upon the receiver presenting a preimage of a specified hash.
A term used to describe a single step in the routing process of a payment between two nodes in the Lightning Network.
I
A unique identifier for a user or node in the Lightning Network, usually represented by a public key or a Lightning Address.
The amount of funds a Lightning Network channel can receive from another channel.
The ability of different Lightning Network implementations to work seamlessly together, allowing users to transact and route payments between various clients and platforms.
A payment request generated by the receiver in the Lightning Network, containing the necessary details for the sender to route and complete a payment.
J
JavaScript Object Notation Remote Procedure Call, a protocol that allows communication between a client and server in the Lightning Network, enabling the exchange of data and the execution of commands.
K
A feature that allows spontaneous payments to be made on the Lightning Network without requiring an invoice.
The process of securely generating, storing, and using cryptographic keys in the Lightning Network.
L
Short for "Lightning Network command-line interface," LNcli is a command-line tool for interacting with a Lightning Network node.
Internet Identifier that allows anyone to send you Bitcoin over the Lightning Network. No scanning of QR codes or pasting invoices necessary.
A design document that proposes new features, improvements, or standards for the Lightning Network, following a similar process to Bitcoin Improvement Proposals (BIPs).
Short for "Lightning Network Daemon," LND is an implementation of the Lightning Network protocol developed by Lightning Labs.
A standardized set of schemes using HTTP to coordinate Lightning activities without the direct usage of invoices - simplifying user interactions with various Lightning Network services
The amount of funds owned by a node in a Lightning Network channel.
Services provided by Lightning Labs that enable users to rebalance their channels by moving funds on-chain to off-chain (Loop In) or off-chain to on-chain (Loop Out).
Liquidity Quality, a metric used to assess the availability of funds in a channel for sending or receiving payments.
M
The primary and operational blockchain network for a cryptocurrency, where real transactions and payments occur, as opposed to a testnet.
An authentication token used in the Lightning Network to grant permissions and access to specific services or resources within the network.
A smartphone application that enables users to store, manage, and transact with cryptocurrencies, including using the Lightning Network for fast and low-cost payments.
A feature that enables splitting a Lightning Network payment into smaller parts, allowing for more efficient routing and increased privacy.
N
The arrangement and connectivity of nodes and channels within the Lightning Network, which impacts routing efficiency, liquidity, and overall network performance.
A participant in the Lightning Network that operates and maintains channels with other nodes, enabling transactions to be routed and processed.
A human-readable name assigned to a Lightning Network node, used for identification purposes.
An individual or organization responsible for running and maintaining a Lightning Network node.
A random or incremental value used in cryptographic operations to ensure uniqueness and prevent replay attacks.
O
A technique used in the Lightning Network to ensure the privacy of payment routing by wrapping payment information in layers of encryption.
Refers to transactions or activities that occur outside the base layer blockchain, like transactions within the Lightning Network.
Refers to transactions or activities that occur directly on the base layer blockchain, such as opening or closing a payment channel in the Lightning Network.
The amount of funds a Lightning Network channel can send to another channel.
P
A mechanism for enabling off-chain transactions between two parties using an on-chain commitment transaction. Payment channels allow for fast and low-cost transactions.
The process of routing a payment through multiple nodes and channels in the Lightning Network.
A unique identifier generated by hashing the payment preimage. It is used by the sender to route a payment through the Lightning Network.
A secret piece of data used to unlock a Hashed Time-Locked Contract (HTLC) once the payment is completed. The recipient provides the preimage to claim the funds.
The process of finding a suitable route through the Lightning Network for a payment. Pathfinding takes into account factors such as channel capacity, fees, and channel reliability.
Another node in the Lightning Network with which a connection has been established.
A channel that is not publicly announced and therefore not visible on the Lightning Network graph. Private channels are used for more private transactions and may not be used for routing payments.
A payment channel that is publicly announced and visible on the Lightning Network graph, allowing it to be used for routing payments.
Q
A request for information about a node, channel, or other elements within the Lightning Network.
R
The process of adjusting the distribution of funds within a Lightning Network channel to ensure optimal routing capacity and channel usage.
A mechanism used in the Lightning Network to penalize a participant attempting to broadcast an outdated or fraudulent commitment transaction.
The process of finding a path through the Lightning Network to connect the sender with the recipient.
A small fee paid to nodes for providing connectivity on the Lightning Network.
S
Cryptographic proof of the authenticity and integrity of a message or transaction in the Lightning Network, generated by signing with a private key.
A protocol for sending encrypted messages over the Lightning Network, which can be used for communication or embedding additional information in payments, improving privacy and enabling new use cases.
An operation in which the capacity of a payment channel is increased or decreased without closing the channel. Splicing allows participants to add or remove funds from a channel while maintaining the channel's state.
A mechanism that allows users to exchange on-chain and off-chain funds without closing a Lightning Network channel. This allows users to maintain channel connections while managing their on-chain and off-chain balances.
T
A parallel blockchain network used for testing and development purposes, allowing users to experiment without risking real funds.
A type of smart contract that enforces a time delay before funds can be accessed. In the Lightning Network, time-locked contracts are used to secure off-chain transactions and prevent double-spending.
A proposal for simplifying payment routing in the Lightning Network, where users rely on a few trusted nodes to find the optimal route for their payment.
A privacy-focused network protocol.
U
Uniform Resource Identifier, a string of characters used to identify a name or a resource in the Lightning Network.
Unspent Transaction Output, the output of a Bitcoin transaction that has not yet been spent. UTXOs are used as inputs for new transactions and are essential when opening or closing Lightning Network channels.
V
The process of confirming the authenticity and integrity of a message or transaction in the Lightning Network using cryptographic signatures.
A technology that creates an encrypted connection between a user and a server, providing privacy and security when using the internet or connecting to the Lightning Network.
W
A third-party service that monitors the blockchain for malicious activity on behalf of Lightning Network users. Watchtowers can help protect users from fraud by detecting and responding to dishonest channel closures.
A software application or hardware device used to store, manage, and transact with cryptocurrencies like Bitcoin. Lightning wallets enable users to send and receive payments through the Lightning Network.
X
An extended public key used in hierarchical deterministic (HD) wallets, enabling the generation of multiple public addresses without revealing the associated private keys.
Y
Short for "YAML Ain't Markup Language," YAML is a human-readable data serialization format often used in configuration files and data exchange between languages with different data structures.
Z
A transaction that has been broadcast to the network but has not yet been included in a block. In the Lightning Network, zero-confirmation transactions can be used to open a channel, but users should be aware of the risks associated with such transactions, as they are more susceptible to double-spending attacks.
