How to open channel in Lightning Network

Cantsay

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Quote from: SME211 on January 16, 2023, 12:19:10 PM

The company that is claiming they will send me the BTC says I am required to pay 0.59 BTC in order to receive 12.4 BTC and that the 0.59 BTC will be refunded with the transfer of the 12.4 BTC.

I think you should trend carefully with such company especially now that they have displayed some red flags I think it's better to just ignore them permanently if you know you didn't sell/trade anything with them that will result to that amount.

Quote

I received an "Incoming Transaction" which requests this amount with the following wording:

"Required Minimum Hash Power on Reflection ID: 0.598647 BTC"

What doesn't make sense to me is that they are using Lightning Network to transfer this large amount of BTC. Also I have no idea what Hash Power on Reflection ID means.

You know most times these scammers tend to use some gibberish words so as to be able to deceive those that are not familiar with the system. If someone who had never used the program before should see the "Required Minimum Hash Power on Reflection ID:" they'll think it's something that's necessary for the transaction to be done.

NeuroticFish

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Quote from: SME211 on January 16, 2023, 12:19:10 PM

What doesn't make sense to me is that they are using Lightning Network to transfer this large amount of BTC.

Indeed, for such large amount, even sending with a "huge fee" of a dollar or two (or even ten!) it still makes more sense to send on-channel.

Quote from: SME211 on January 16, 2023, 12:19:10 PM

Also I have no idea what Hash Power on Reflection ID means.

Me neither, and it's known that scammers do make up complicated wording to confuse users (I don't know if it's the case, but it seems to be).

Quote from: SME211 on January 16, 2023, 12:19:10 PM

The company that is claiming they will send me the BTC says I am required to pay 0.59 BTC in order to receive 12.4 BTC and that the 0.59 BTC will be refunded with the transfer of the 12.4 BTC.

If one requires money from you in order to send you your money... that's 99.9999999999% sure a scam.
Just think: what on earth they need that money for?!

----
Is that company some HYIP or cloud mining you've invested in and now you want to get your winnings? Roll Eyes

DannyHamilton

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Quote from: SME211 on January 16, 2023, 12:19:10 PM

The company that is claiming they will send me the BTC says I am required to pay 0.59 BTC in order to receive 12.4 BTC and that the 0.59 BTC will be refunded with the transfer of the 12.4 BTC. I received an "Incoming Transaction" which requests this amount with the following wording:

"Required Minimum Hash Power on Reflection ID: 0.598647 BTC"

What doesn't make sense to me is that they are using Lightning Network to transfer this large amount of BTC. Also I have no idea what Hash Power on Reflection ID means.

Sounds like a scam.

How did you find this company? Why are they sending you 12.4 BTC ($250,000)? Did you sell a business or a house to them?

SME211

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The company that is claiming they will send me the BTC says I am required to pay 0.59 BTC in order to receive 12.4 BTC and that the 0.59 BTC will be refunded with the transfer of the 12.4 BTC. I received an "Incoming Transaction" which requests this amount with the following wording:

"Required Minimum Hash Power on Reflection ID: 0.598647 BTC"

What doesn't make sense to me is that they are using Lightning Network to transfer this large amount of BTC. Also I have no idea what Hash Power on Reflection ID means.

n0nce

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Quote from: SME211 on January 10, 2023, 02:11:03 PM

My understanding is that on the Bitcoin Lighting Network, both parties, the sender, and receiver must make a payment on top of the outgoing and incoming transactions. Why is that?

Quote from: bitcoindusts on January 12, 2023, 08:56:40 PM

Bitcoin lightning network need both parties to make (receiver and sender) a payment on top of the transaction because of [... does not answer the actual question ...]

No, both parties do not have to make a payment. In fact, nobody does a payment in the sense of spending BTC using a regular Bitcoin P2PKH payment transaction.
In the vast majority of cases, channels are opened unilaterally, which means that just one party deposits funds ('make a payment' (?)) during the channel creation. The result is that the channel partner just has a balance of 0, so the channel is maximally unbalanced. That can be fixed as soon as you have more than 1 channel or by spending e.g. towards your own on-chain address through a submarine swap or buying something online.

@OP, maybe start here. Take your time, it's worth it.

bitcoindusts

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Bitcoin lightning network need both parties to make (receiver and sender) a payment on top of the transaction because of the structure of the lightning network being built on top of the Bitcoin blockchain to enable fast, off chain transaction which is called the commitment transactions. So the reason for the payment on top of the ongoing transaction is to enable a fast off-chain transaction.

A commitment transaction is a type of transaction that locks up a certain amount of Bitcoin in a 2-of-2 multi-signature address, where both parties have the ability to spend the funds. This creates a "channel" between the two parties, allowing them to make an unlimited number of transactions without having to broadcast each one to the Bitcoin blockchain.

You can find more explanation here: https://medium.com/softblocks/lightning-network-in-depth-part-1-payment-channels-b943607950dd

AverageGlabella

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It is called a commitment transaction because you put up a certain amount of Bitcoin which should be considered as collateral. This collateral is used to ensure that both parties can fulfill their obligations in the event of a disagreement. The parties that have opened up the channel can perform an unlimited number of transactions between themselves without having to broadcast each one to the blockchain. Then once the trade has finished they can close the transaction and only then is the amount broadcast to the blockchain.

To open a channel you need to make a payment and the person you are transacting with needs to make a payment. Both parties need to be in agreement to open and close a channel.

tromp

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Quote from: SME211 on January 10, 2023, 02:11:03 PM

My understanding is that on the Bitcoin Lighting Network, both parties, the sender, and receiver must make a payment on top of the outgoing and incoming transactions. Why is that?

Because payment channels work by repeatedly changing the possible payouts of a jointly owned utxo, always ensuring that only the last one is valid.

darkv0rt3x

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Quote from: SME211 on January 10, 2023, 02:11:03 PM

My understanding is that on the Bitcoin Lighting Network, both parties, the sender, and receiver must make a payment on top of the outgoing and incoming transactions. Why is that?

I think you should read some more about LN. No one will spoon-feed you with straight answers because there are no straight answers for some quesitons!

SME211

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My understanding is that on the Bitcoin Lighting Network, both parties, the sender, and receiver must make a payment on top of the outgoing and incoming transactions. Why is that?

Topic: How to open channel in Lightning Network (Read 172 times)