Bitcoin Q&A: Lightning’s security model

Are Lightning Network transactions still bitcoin transactions? Do you have to be online? What happens when a party does not commit to an action / send a reimbursement in LN? How will the Lightning Network handle DDoS attacks? How does node banning work?

These questions are from the MOOC 9.5 session which took place on March 16th, 2018. Andreas is a teaching fellow with the University of Nicosia. The first course in their Master of Science in Digital Currency degree, DFIN-511: Introduction to Digital Currencies, is offered for free as an open enrollment MOOC course to anyone interested in learning about the fundamental principles.

If you want early-access to talks and a chance to participate in the monthly live Q&As with Andreas, become a patron: https://www.patreon.com/aantonop

RELATED:
The Lightning Network – https://www.youtube.com/playlist?list=PLPQwGV1aLnTurL4wU_y3jOhBi9rrpsYyi
How do I choose a wallet? – https://youtu.be/tN6b62sEpsY
Hot vs. cold wallets – https://youtu.be/Aji_E9sw0AE
SegWit adoption – https://youtu.be/KCsTVTRk6I4
Secure, tiered storage system – https://youtu.be/uYIVuZgN95M
Decentralised exchanges and counterparty risk – https://youtu.be/hi_jaw0dT9M
Decentralised exchanges with fiat – https://youtu.be/3Url8tbQEkA
How do I secure my bitcoin? – https://youtu.be/vt-zXEsJ61U
How do mnemonic seeds work? – https://youtu.be/wWCIQFNf_8g
HODLing and the “get free” scheme – https://youtu.be/MhOwmsW1YNI
How to get people to care about security – https://youtu.be/Ji1lS9NMz1E
Airdrop coins and privacy implications – https://youtu.be/JHRnqJJ0rhc
Regulation and the bank boycott – https://youtu.be/8ypH69Cb1l0
The price of losing privacy – https://youtu.be/2G8IgiLbT_4
Bitcoin as everyday currency – https://youtu.be/xYvvSV4mjH0
Irreversibility and consumer protection – https://youtu.be/R107YWu5XzU
Hyperbitcoinization – https://youtu.be/AB5MU5fXKfo
Job opportunities with cryptocurrencies – https://youtu.be/89_p4pDlQtI
How long until mainstream adoption? – https://youtu.be/y3cKBDBabtA
What is the biggest adoption hurdle? – https://youtu.be/jHgyHF3F2TI

Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin.

Follow on Twitter: @aantonop https://twitter.com/aantonop
Website: https://antonopoulos.com/

He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.

THE INTERNET OF MONEY, v1: https://www.amazon.co.uk/Internet-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8

[NEW] THE INTERNET OF MONEY, v2: https://www.amazon.com/Internet-Money-Andreas-M-Antonopoulos/dp/194791006X/ref=asap_bc?ie=UTF8

MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042

[NEW] MASTERING BITCOIN, 2nd Edition: https://www.amazon.com/Mastering-Bitcoin-Programming-Open-Blockchain/dp/1491954388

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17 thoughts on “Bitcoin Q&A: Lightning’s security model”

  1. Hi Andreas, I'm running a BTC node. In LN can I do the same without to much hassle or resources? Thnxs for your great work!

  2. Love your videos and explanations over the years that helped me early on, but can you explain the implications of operating a custodial account and how the holder of funds (even for a split second during a transaction) will have to comply with the same KYC, AML/CTF regulations as a money service business or deposit taker (licences, deposit guarantees liquidity, part III of Patriot Act etc and the law not the smart contract, this can't be conflated that code is law or ignored) which will affect anyone running a LN node, unlike transactions that occur 100% on-chain.Your earliest videos taught me the benefit of on-chain security and not just using something that has the _qualities of on-chain_.Love your enthusiasm, dedication and effort to education in helping bank the unbanked.

  3. Thanks for doing these videos, and everything you have done!Have you read IOHK's recent "Composable Proof-of-Stake Blockchains with Dynamic Availability," and if so, what do you think about their results?

  4. Will lightning network have something similar to what particl is working on with their mad escrow transaction system? Basically a way to prevent fraud, with particl both parties put up money in a smart contract until terms of the agreement are met and if one party tries to screw over the other they both lose money, mad= mutually assured destruction. What is LN's fraud prevention plan??

  5. People if you want to know about the risks of using lightning, please don't ask Andreas. Ask someone who is trying to find weaknesses. How can this video be called "lightnings security model" when Andreas refuses to mention any of the problems? It is a hot wallet for goodness sakes!!!

  6. I am a big fan of Andreas, but this interpretation of the LN security model is very disappointing. A LN transaction is NOT the same as a bitcoin transaction precisely because it has not been broadcast to the bitcoin network and therefore it is not replicated through an immutable network protected by massive redundancy. In addition, the channel must be actively monitored and ready to respond to a potential attempt to cheat. The need for safekeeping of unpublished transactions, and the necessity to actively monitor and publish a transaction under a certain time constrain make the theoretical security of the LN inferior to Bitcoin.

  7. Good video, very informative. The question I want to know the answer to is why can’t BTC scale on chain? I’ve heard loads of different arguments on both sides of the debate, but no ‘definitive’ answers.

  8. Wrong, ! If LN is secure why would BTC require the blockchain at all, transaction amount is irrelevant. Put it this way – if bitcoin was launched on 3rd Jan 2009 purely as the Lightning Network would it even exist today ? (Don't block me bro !)

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