Subnostr

How LN transaction determines finality?

I believe it settles on chain periodically with a single balance and a summary of all transactions instead of settling each transaction in turn.

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Discussion

Qno 2y ago

Hence there is a greater degree of trust and risk than doing everything on chain - at least I think that's the case.

Disturbia 2y ago

I mean within the LN network itself.

Like if i send 10 sats to you, what determines that it is already spendable

Qno 2y ago

There is some collateral in the system I think, due to node operators having to put bitcoin into a channel to open it. So I believe there is a reputational aspect also.

Qno 2y ago

Don't take my word for it though, I know less than anybody on NOSTR about anything technical, and I'm generally wrong.

Disturbia 2y ago

Confirmation is the process by which a transaction can be seen on your wallet. Finality is the point where a transaction cant be reversed and hence can be spent.

Bitcoin confirmation is by block time (1 block) . As for finality, bitcoin doesnt have true finality as transaction can always be reorg, but generally accepted at 3 block time

Qno 2y ago

Yeah and I don't think lightning does finalise. There's an element of trust and safety in numbers until finalisation on the blockchain.

Qno 2y ago

Please correct me if I'm wrong.