Mastering the Lightning Network by Andreas M. Antonopoulos & Olaoluwa Osuntokun & Rene Pickhardt

Author:Andreas M. Antonopoulos & Olaoluwa Osuntokun & Rene Pickhardt
Language: eng
Format: epub, mobi
Published: 2021-12-22T16:31:38+00:00

Figure 35. Alice cheating

As you can see, Alice’s old commitment has two outputs, one paying herself 70,000 satoshis (to_local output) and one paying Bob 70,000 satoshis. Alice can’t yet spend her 70,000 to_local output because it has a 432 block (3 day) timelock. She is now hoping that Bob doesn’t notice for three days.

Unfortunately for Alice, Bob’s node is diligently monitoring the Bitcoin blockchain and sees an old commitment transaction broadcast and (eventually) confirmed on-chain.

Bob’s node will immediately broadcast a penalty transaction. Since this old commitment was revoked by Alice, Bob has the per_commitment_secret that Alice sent him. He uses that secret to construct a signature for the revocation_pubkey. While Alice has to wait for 432 blocks, Bob can spend both outputs immediately. He can spend the to_remote output with his private keys because it was meant to pay him anyway. He can also spend the output meant for Alice with a signature from the revocation key. His node broadcasts the penalty transaction shown in Cheating and penalty.

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