A Technical Introduction to The Lightning Network
We Are Developers is a conference catering to a developer audience. I’ve spoken live at this event many times before but due to COVID, the event this year was held online. This is a technical talk, specifically intended for developers. If you want an understanding how bitcoin and the lighting network actually work behind the scenes then this talk is for you.
0:00 A technical introduction to the Lightning Network
0:19 Download the slides and use them under a Creative Commons license
0:36 Book: Mastering Bitcoin 2nd Edition, where to find it
1:21 Book: Mastering the Lighting Network, where to find it and how to collaborate
1:52 40+ ad-free videos on the Lightning Network
2:19 What is the Lightning Network?
2:40 BOLT Standard
2:57 Overview of the presentation: Bitcoin transactions, Bitcoin scripts, Multi-signature scripts, Timelocks, and Payment Channels
3:45 How Bitcoin transactions are structured
7:55 Simple script execution in Bitcoin (pushing and popping things from the stack)
11:20 Multisignature and Bitcoin
13:42 2-of-2 Multisig EXAMPLE in Bitcoin
16:04 Simple payment channel EXAMPLE – Emma and Fabian
17:35 Security primitives of payment channels
19:12 Emma and Fabian and their one way bitcoin payment channel
19:41 Streaming money – streaming services and streaming payments
20:37 Commitment and funding transactions for a lightning network payment channel
25:20 Settlement transactions
26:18 Bi-directional payment channel EXAMPLE – Alice and Bob
27:47 What about cheating? How can Alice and Bob trust one another to be honest?
30:32 Nuances in bi-directional payment channels
31:38 Hash time-lock contracts
32:17 If-Else statements
33:49 Lightning network routing and payment channels
34:31 Lighting network EXAMPLE Alice pays Eric
36:38 Lightning network invoices for bitcoin amounts
36:58 HTLC Hash lock-time contract example
41:13 HTLC nuances, amounts are different
42:20 Onion-routed privacy on the lightning network
43:03 Closing and support my free ad-free work on Patreon
This talk was delivered at the virtual We Are Developers Congress on May 25th, 2020.