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README.md
README.md
 
 
REST-GET-v1-balance-channels.py
REST-GET-v1-balance-channels.py
 
 
REST-GET-v1-getinfo.py
REST-GET-v1-getinfo.py
 
 
REST-GET-v1-payments.py
REST-GET-v1-payments.py
 
 
REST-POST-v2-router-send.py
REST-POST-v2-router-send.py
 
 
_check-system-as-seen-from-lnd1.sh
_check-system-as-seen-from-lnd1.sh
 
 
_check-system-as-seen-from-lnd2.sh
_check-system-as-seen-from-lnd2.sh
 
 
_list-payments-as-seen-from-lnd1.sh
_list-payments-as-seen-from-lnd1.sh
 
 
_list-payments-as-seen-from-lnd2.sh
_list-payments-as-seen-from-lnd2.sh
 
 
_send-from-lnd1-to-lnd2.sh
_send-from-lnd1-to-lnd2.sh
 
 
_send-from-lnd2-to-lnd1.sh
_send-from-lnd2-to-lnd1.sh
 
 
development-and-understanding-dashboard.sh
development-and-understanding-dashboard.sh
 
 
lightning-network-info.sh
lightning-network-info.sh
 
 
poetry.lock
poetry.lock
 
 
pyproject.toml
pyproject.toml
 
 

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lightning-network

EXPLANATION: What is a Lightning network and how does it relate to Bitcoin?

The lightning network acts as the tab running at a bar. The tab is a payment channel between you and the bar.

When ordering the first drink, you provide a credit card, similar to initiating a payment channel. Then as the night proceeds, and you're having too much fun, you will order multiple drinks; these multiple drink orders are recorded transactions. While going through these drinks, you haven't technically spent any money on these drinks. It's only until the end of the night when you pay for the drinks by closing out your tab.

With the lightning network, 2 transactions happen on the Bitcoin network:

  1. opening a payment channel (starting the tab)
  2. closing a payment channel (closing out the tab)

SETUP

Based on https://www.bitstein.org/blog/setting-up-a-bitcoin-lightning-network-test-environment.

DOWNLOAD/EXTRACT: Software

These archives are expected to be unpacked at $HOME/Downloads/ (hack).

EDIT: $HOME/.bash_aliases

export BITCOIND_DIR="$HOME/lightning-network-implementation/.bitcoin"

alias bitcoind="$HOME/Downloads/bitcoin-27.0-x86_64-linux-gnu/bitcoin-27.0/bin/bitcoind -datadir=$BITCOIND_DIR -fallbackfee=0.0002"
alias bitcoin-cli="$HOME/Downloads/bitcoin-27.0-x86_64-linux-gnu/bitcoin-27.0/bin/bitcoin-cli -datadir=$BITCOIND_DIR"

export LND1_DIR="$HOME/lightning-network-implementation/.lnd1"
export LND2_DIR="$HOME/lightning-network-implementation/.lnd2"

alias lnd1="$HOME/Downloads/lnd-linux-amd64-v0.18.0-beta/lnd --lnddir=$LND1_DIR";
alias lncli1="$HOME/Downloads/lnd-linux-amd64-v0.18.0-beta/lncli -n regtest --lnddir=$LND1_DIR"

alias lnd2="$HOME/Downloads/lnd-linux-amd64-v0.18.0-beta/lnd --lnddir=$LND2_DIR";
alias lncli2="$HOME/Downloads/lnd-linux-amd64-v0.18.0-beta/lncli -n regtest --lnddir=$LND2_DIR --rpcserver=localhost:11009"
FYI: Some important commands Comments
bitcoind Start (Might require bitcoin-cli createwallet testwallet first.)
bitcoin-cli stop
bitcoin-cli createwallet testwallet
bitcoin-cli listwallets
bitcoin-cli loadwallet testwallet
bitcoin-cli -generate 101 Generate 101 blocks
bitcoin-cli -rpcwallet=testwallet getbalance

EDIT: $HOME/lightning-network-implementation/.bitcoin/bitcoin.conf

Create rpcuser and rpcpassword using https://github.com/bitcoin/bitcoin/tree/master/share/rpcauth.

regtest=1
daemon=1
txindex=1
rpcuser=
rpcpassword=
zmqpubrawblock=tcp://127.0.0.1:28332
zmqpubrawtx=tcp://127.0.0.1:28333

EDIT: $HOME/lightning-network-implementation/.lnd1/lnd.conf

# https://docs.lightning.engineering/lightning-network-tools/lnd/lnd.conf

[Application Options]

restlisten=8080
accept-amp=true
accept-keysend=true

[Bitcoin]

bitcoin.active=1
bitcoin.regtest=1
bitcoin.node=bitcoind

[Bitcoind]

bitcoind.rpchost=localhost
bitcoind.rpcuser=
bitcoind.rpcpass=
bitcoind.zmqpubrawblock=tcp://127.0.0.1:28332
bitcoind.zmqpubrawtx=tcp://127.0.0.1:28333
FYI: Some important commands Comments
lnd1 Start
lncli1 state
lncli1 create
lncli1 getinfo Requires unlocked wallet
lncli1 unlock
lncli1 getinfo | jq -r .identity_pubkey
lncli1 walletbalance

EDIT: $HOME/lightning-network-implementation/.lnd2/lnd.conf

[Application Options]

listen=0.0.0.0:9734
rpclisten=localhost:11009
restlisten=0.0.0.0:8180
accept-amp=true
accept-keysend=true

[Bitcoin]

bitcoin.active=1
bitcoin.regtest=1
bitcoin.node=bitcoind

[Bitcoind]

bitcoind.rpchost=localhost
bitcoind.rpcuser=
bitcoind.rpcpass=
bitcoind.zmqpubrawblock=tcp://127.0.0.1:28332
bitcoind.zmqpubrawtx=tcp://127.0.0.1:28333
FYI: Some important commands Comments
lnd2 Start
lncli2 state
lncli2 create
lncli2 getinfo Requires unlocked wallet
lncli2 unlock
lncli2 getinfo | jq -r .identity_pubkey
lncli2 walletbalance

EXECUTE: setup nodes and connect lightning nodes

Create wallets on the bitcoin and the lightning nodes:

bitcoin-cli createwallet testwallet
...follow instructions

lncli1 create
...follow instructions

lncli2 create
...follow instructions

Connect lightning nodes

lncli1 connect $(lncli2 getinfo | jq -r .identity_pubkey)@localhost:9734

lncli1 listpeers

EXAMPLE: send bitcoins from bitcoin node to lightning node 2 and create channel between lightning node 1 and lightning node 2

MINE bitcoins

bitcoin-cli -generate 5 (mine 5)

bitcoin-cli -generate 101 (confirm)

OBTAIN lightning node 2 address

lncli2 newaddress np2wkh

Copy address.

SEND bitcoin to lightning node 2 address

bitcoin-cli sendtoaddress <address> 1 (sending 1 bitcoin)

bitcoin-cli -generate 6 (confirm)

CREATE channel

Start channel from Lightning Network Daemon 1 to Lightning Network Daemon 2:

lncli1 openchannel $(lncli2 getinfo | jq -r .identity_pubkey) 100000 (100'000 satoshis), this returns funding_txid

#UNDERSTAND: 1) lnd1 must have >= 100000 sats and 2) the channel opening must be confirmed by blocks mined on/by the bitcoin node

bitcoin-cli -generate 10

CHECK

lncli1 listchannels

DEVELOPING: Keysend (under construction!)

https://docs.lightning.engineering/lightning-network-tools/lnd/send-messages-with-keysend

lncli2 sendpayment --dest <destination public key> --amt 2 --keysend

START

Bitcoin Core Lightning Network Daemon 1 (lnd1) Lightning Network Daemon 2 (lnd2)
Start
bitcoind		 Start
lnd1		 Start
lnd2
bitcoin-cli loadwallet testwallet lncli1 unlock (wallet) lncli2 unlock (wallet)
bitcoin-cli -rpcwallet=testwallet getbalance lncli1 walletbalance lncli2 walletbalance
lncli1 listpeers lncli2 listpeers
lncli1 getinfo | jq -r .identity_pubkey (ipk1) lncli2 getinfo | jq -r .identity_pubkey (ipk2)
lncli1 connect <ipk2>@localhost:9734
If lncli1 connect fails:
bitcoin-cli -generate 100 (or more)
lncli1 listpeers lncli2 listpeers
lncli1 listchannels lncli2 listchannels
  • lncli1 connect $(lncli2 getinfo | jq -r .identity_pubkey)@localhost:9734

TROUBLESHOOTING

Issue Remedies
LNWL: Unable to synchronize wallet to chain, trying again in 5s: -8: Block height out of range lnd* --reset-wallet-transactions

INSPECT: channels

lncli* listchannels | jq -c .channels[] | while read channel; do echo LIGHTNODE1_CHANNEL.remote_pubkey = $(echo $channel | jq -r .remote_pubkey) capacity=$(echo $channel | jq -r .capacity); done

OPERATE: send payment between Lightning Network Daemons

1. _check-system-as-seen-from-lnd1.sh

  • #LOOK-UP-DATA: .local_balance and .remote_balance

2. ./_send-from-lnd1-to-lnd2.sh

3. _check-system-as-seen-from-lnd1.sh

  • #EFFECT: local_balance should decrease and remote_balance should increase

SETUP: Run Bitcoin full node Raspberry Pi

https://howchoo.com/pi/run-bitcoin-full-node-raspberry-pi/

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