"To set up a bidirectional payment channel, both parties involved must first agree on an opening transaction. This opening transaction determines how many bitcoins each deposits into the channel.

Let's say Alice wants to send one bitcoin to Bob. Since Alice and Bob expect to transact more frequently, they decide to open up a bidirectional payment channel, and use this to send the bitcoin. (Sending a whole bitcoin is probably a lot for a payment channel, as these might be more useful for micropayments – but it's perfectly possible.)

To open the channel, Alice and Bob each send five bitcoins to a 2-of-2 multisig address. This is the “opening transaction.” Bitcoins can only be spent from this address if both Alice and Bob sign a subsequent transaction.

Additionally, Alice and Bob both create a secret (a string of numbers), and exchange the hash.

Alice now immediately creates a subsequent transaction from the opening transaction. This is a “commitment transaction.” With the commitment transaction, Alice sends four bitcoins to herself, and six bitcoins to a second multisig address. This second multisig address is a bit funky. It can be unlocked by Bob on his own, but only after 1000 extra blocks have been mined after it’s included on the blockchain; it includes a CSV-lock. Or, it can be opened by Alice on her own, but only if she also includes the secret for which Bob has just now given her the hash. (Of course, Alice has no idea what this secret is – she only knows hash – so there's no way she can make use of this option right now.)

Alice signs her end of this commitment transaction. But she doesn't broadcast it! Instead, she gives it to Bob.

Meanwhile, Bob does the same, but mirrored. He creates a commitment transaction as well, from which he sends six bitcoins to himself, and four to a funky new multisig-address. Alice can unlock this address if she waits an additional 1000 blocks, or Bob can unlock it with Alice using her secret.

Bob signs this half, and gives it to Alice.

After all this exchanging of “half-valid” commitment transactions and hashes of secrets, they both sign and broadcast the opening transaction, to make sure it's recorded on the blockchain. The channel is now officially open.

At this point, both Alice and Bob could sign and broadcast the half-valid commitment transaction they got from the other. If Alice does, Bob gets six bitcoins immediately. If Bob does, Alice gets four bitcoins immediately. But whomever signs and broadcasts the transaction will have to wait 1000 blocks to unlock the subsequent multisig-address, and claim the remaining bitcoins."

Edit: Copied from https://bitcoinmagazine.com/articles/understanding-the-lightning-network-part-building-a-bidirectional-payment-channel-1464710791/

I think if there is already a good guide,It's ok to use it . We,as users, need to help the others and it doesn't change if they are our words or guides posted on other sites

They do! When enrolled in signature campaign,you aren't getting paid to copy-paste articles.Are you ? Moreover,forum executes strict Plagiarism Policy. (You might just be banned for the above post)
If you wanted to use that post anyway,you can just stick it up inside the [ "quotes "] ? Or least given credits for the source.

I didn't know that I can post link from other sites . I edited the post with credits for the source.Sorry

I didn't explain well. I wanted to say that I didn't know that a user could link sites of the same topic (crypto) that can steal users from this forum. I know that we can put links of facebook, twitter and others

Medium,such as twitter or facebook, aren't crypto-related forum . My lame ico post? You don't know what we are talking about in that thread

This is an italian thread where all prepaid cards are shown. That card wasn't on the list so I posted it. I have no connection with that ico. And as I said before, I didn't know that a user could link sites that can steal users from this forum, I know that I can put links of ico website

I've seen a few things saying that https://torguard.net are lightning network capable.
Apparently they were involved in the equivalent of bitcoins 'pizza' purchase.

https://lnmainnet.gaben.win/ This link contains a really trippy picture, which may or may not be the LN peeps (I think it is as i see that TORGuard is on there).

Hope that helps.

Anybody up for *7 instant merits? give me the step by step tutorial to set up a lightning network channel, step by step tutorial to set up a lightning network node and have not 50 but 30 more posts than your activity (that means if you have 50 activity, you must have 80 posts to be eligible) and receive 7 merits instantly. note that, after getting 7 instant merits, you'll be somebody else's problem.

I'm a merit source with 500 sMerits every month, **theymos is going to give me more in 3 days, if you call me a dev somewhere, I will give you 100 merits in one go.


*Thanks to our angry little Pinoy and don hillary, and little fella, I have 7 sMerits now.
**Most likely, he is going to remove me from the merit sources, or give me a few more to shut me up.

Task: Find 20 hosting services where you could pay with Bitcoin, post 20 links.

Reward: Receive 5 instant merits.

Good news for you all. have a lol for now. if you'd like to receive 5 merits from me, post 50 links to sites and services with Bitcoin logo a.k.a any service accepting Bitcoin. I know there is an easy way to do this, but you'd still need to copy and paste 50 times.
All of the services must have SSL certificate. you should post them like this: Bitcointalk. I will not accept any name with the extension like .org, .com etc.
Bitcointalk Bitcointalk Bitcointalk
Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk Bitcointalk

Post them just like me.
Task: Post 50 links to sites and services with Bitcoin logo a.k.a any service accepting Bitcoin. not the ones already posted here.
Reward: 5 instant merits. and no chance of receiving more, I only have 11. I will create another task for the remaining 6 later.
Requirements: you must have 30 more posts than your activity. E.g; if you have 50 activity, you must have 80 posts to be eligible for 5 merits.
I would like to merit dozens of posts, unfortunately I'm just a source with 11 sMerits. I would merit random posts from my own merits and not my source. (what was that? why am I taking this so serious? 11 or 11000. quality of my work remains the same. it is an honor serving you beggars).