13. Payment Channels and Lightning Network

MIT MAS.S62 Cryptocurrency Engineering and Design, Spring 2018
Instructor: Tadge Dryja
View the complete course: ocw.mit.edu/MAS-S62S18
KZbin Playlist: • MIT MAS.S62 Cryptocurr...
Types of payment channels, including unidirectional, decreasing time and lightning channels are covered.
License: Creative Commons BY-NC-SA
More information at ocw.mit.edu/terms
More courses at ocw.mit.edu

[@yotubecreators47]

Tadge Dryja is co-author of the Lightning Network whitepaper, that's why you enjoying those lectures, it was not normal to see such person explain complicated things in very easy way,

[@jasongrig]

how can this have less than 10k views?! this is going to change the world of payments

[@manekedark]

Because this is bad for the banks and what is more banker own politicians

[@alessandropecoraro9376]

Good question....how the hell did I found 3 years later after I meet Bitcoin to Lightning Network.... Because this is happening out of freedom and not driven by Marketing Agencys ;) As Manuel response below we know why no one is looking at that. But no matter. If this shall happen than only with people who truly believe in it and understand the slavery system of Fiat-Money. Peace!

[@1bird_d]

because people don't want change even when it's best

[@yotubecreators47]

they will come here on 2025, after finishing all instagram reels

[@MsClassless]

Best Explanation of LN I found so far!

[@TricksterRad]

Now I'm actually hopeful.

[@shubhamsingh6929]

'Coz this guy literally made LN.

[@TricksterRad]

@@shubhamsingh6929 so? Just because you make something doesn't mean you're gonna explain how it works well.

[@shubhamsingh6929]

@@TricksterRad Agreed, but the correlation is very high, because to explain something well you need to know it inside out, and who can know better than the creator itself.

[@hunterlotus3891]

watch this one too same examples with animation I find it helps to visualize :) kzbin.info/www/bejne/r3zHfGBtdtl0g7M

[@HazrulNizamSidek]

Amazing! This video helped me understand HTLCs. Prior to this, by reading documentation I could only understand the parts about commitment transactions but could never wrap my head around what HTLCs are. This video cleared all of the confusion! Thanks for making this public!

[@adamabb8552]

Love your channel! Keep up the good work.

[@BTC_DNA]

Great job, Tadge!

[@therecyclingguy256]

What an excellent lecture. 📖💯

[@sanchis18]

Tadge Dryja is amazing!

[@KimetsuNoYaiba100]

This is amazing!

[@user-ml4nm3vr3g]

很棒的视频！！！

[@sectorx20]

Great job

[@wyattorangeblock7644]

Am I wrong or does he @30:00 min mishandle the channel funder? If Alice funds the channel it’s her TxID and Bob‘s signature, right? Or am I misunderstanding. In my opinion he is misinterpreting „held by“ in this moment for the receiver and not the funder

[@entropyfu]

works great.

[@g_mkvl]

the miners in the future will do the job of securing the network by collecting the fee's but if the LN gain track how they will collect fees if the majority of the transaction will be done off chain?

[@zxl1712]

awsome!

[@vixbangz99]

interesting, good talk

[@lucashaze6773]

Thank you.

[@anakaoka]

How do you know if your wallet / server has a path to the person you want to pay?

[@HazrulNizamSidek]

Every 'full-node' wallet keeps a copy of the entire network of publicly announced channels, so it can perform its own pathfinding.

[@jordankuzmanovik5297]

This is brilliant!!!!!!

[@RedShiftedDollar]

Do the future dated time lock transactions have any mechanisms to cancel them? Suppose Bob enters a channel with Alice and a time lock refund is set to happen in 10 days. In the meantime, Bob is convicted of a crime and a court order is issued to freeze his financial accounts. How does the network avoid violating this court order? It seems there needs to be some kind of administrative override or something. This technology seems amazing from an academic perspective, but it seems to need additional functionality before being ready for commercial deployment.

[@HazrulNizamSidek]

The network does not care about things outside of itself such as court orders.

[@RedShiftedDollar]

@@HazrulNizamSidek Right. So it’s more of an academic exercise rather than something that can be deployed for use in the real world. Smart contracts are already being changed after deployment so the idea they are fixed unbreakable rule sets is more of a thought experiment. They could just be updated to abide by court orders as the orders come out, etc. Makes sense.

[@HazrulNizamSidek]

@@RedShiftedDollar as far as I'm aware, the lightning network is already deployed and is already running in the real world.

[@RedShiftedDollar]

@@HazrulNizamSidek Yeah, they ended up solving the legal compliance issues at the on-ramps which makes sense so they don’t have to do a million checks internally.

[@edwardferdinand147]

nice

[@opticbit]

I met a guy in a line, who told me he was working on a one way payment system August 23, 2002 software release.

[@cicero1930]

Huffman tree 41mins

[@MrRaybrown007]

Iam watching after Twitter started Tipping. But its a bit over my head.

[@user-or7ji5hv8y]

Kind of like fiat backed by gold? We have to trust “fiat” (Lightning) and we have to trust “gold” (bitcoin), with different degrees and definitions of trust.

[@red149]

Well by definition fiat is not backed by anything but you are right . Bitcoin is the slow but robust and secure layer so it can protect huge wealth and LN is less secure but fast and feeless . We don’t need the Bitcoin security to pay for a coffee but to store our wealth we definitely need something super secure

[@yotubecreators47]

coin hostage timelock hostage bob make sure not signing his own txid, should check

[@basarayam]

why can't this be played > 1x speed?

[@68walter]

Because you’re not the sharpest tool in the shed?😒

[@sillyputty]

it's crazy. There is only 436 likes?

[@jamesjordanjr6175]

I didn't watch the previous videos in the series so I just stepped into the middle of this. Why is this so complicated to follow? Use a credit card or paypal or venmo. But I have done a LN tx before...just don't know why it's such a messy explanation on how it works.

[@andso7068]

It's not messy or complicated at all. Tadge is pretty thorough in his explanation of HTLCs. If you understand how basic signatures and hash functions work, you can follow along fairly easily. Also, I can almost guarantee beneath the surface, the Visa network is worlds more convoluted than the lightning network. But that's a closed loop that you and i will never have the luxury of discovering for ourselves. Unlike BTC and the lightning network.... Yeah... Ultimately, I guess if you lack an interest in CS in conjunction with literally skipping essential lectures and readings, it should go without saying that none of this will make any sense, at all.

[@GeorgePapageorgakis]

he looks and speaks like Elon Musk. lol

[@christianc8265]

I need to admit, I don't like the lightning network too much. instead of *promises* on permanent online nodes and watchtowers, why don't we out this promises on a faster Blockchain (like dot or whatever) and record them there as *facts* . smart contracts will act on expiry as designed.