Topic: Lightning Network Glosary (Read 126 times)

Hi guys. I've been reading some topics of people with doubts about Submarine and atomic swaps, how Lightning works, etc.
I decided to make a small glosary of terms, I hope you like it..

Lightning Network is a decentralized network using smart contract functionality in the blockchain to enable instant payments across a network of participants.

Payment Channel is a communication channel that allows two parties to make many secure payments between each other in exchange for making only a few transactions on the blockchain.

Lightning Node the node is a wallet with one or more open Lightning channels. Should not be confused with a Bitcoin Blockchain Full Node.

Atomic Swaps, or atomic cross-chain trading, is the exchange of one cryptocurrency to another cryptocurrency, without the need to trust a third-party into the Lightning Network. In other words, a user can send bitcoin, and the other user can receive the payment as litecoin.

Submarine swaps exchange off-chain Lightning tokens for on-chain tokens. Essentially, they let users send Lightning payments to a middleman on the Lightning Network; that middleman will send a corresponding amount of bitcoin to a regular (on-chain) Bitcoin address.

Malleability An encryption algorithm is malleable if it is possible to transform a ciphertext into another ciphertext which decrypts to a related plaintext.

Micropayments are a Bitcoin transaction involving a very small sum of money. Lightning enables one to send
funds down to 0.00000001 bitcoin without custodial risk.

Commitment transactions are a pair of asymmetrical transactions that allow multiple users to participate in a single transaction (and thus act as a single entity), using a multi-key system.

Well guys I hope you like this, I gathered info from many websites. Let me know if you want me to add any other concept to this list.