1/ 🔍 Payment channels might sound complex, but let's break it down in simple terms. They're like a financial relationship between two Lightning nodes, formed by funding a 2-of-2 multisignature address. Hmm? 🤔
2/ 🧩 So, what's a multisignature address? It's where Bitcoin is locked and needs multiple signatures to unlock and spend. In a 2-of-2 multisignature address, as used in the Lightning Network, both signers or channel partners must agree to spend the funds. ✒️✒️
3/ 🤝 To open a payment channel, you first need to connect with another Lightning node. But how do you find them? You need their "Node Identifier". This typically looks like "NodeID@Address:Port." 📡
4/ 🆔 The "NodeID" is a unique identifier for a specific node, often presented in hexadecimal encoding.
5/ 🌐 The "Address:Port" tells you where that node can be reached. This could be in various formats, like a regular IP address and port number or a special Tor "onion" address with a port number.
6/ 🌟 For example, the "Node Identifier" for the PLEBNET_DEV testnet lightning node looks like this: "03ba00a57cec1cef4873065ad54d0912696274cc53155b29a3b1256720e33a0943@24.199.122.244:19735". You'll often find this in a QR code for easy connecting.
7/ 📚 So, to open a payment channel, you need the Node Identifier, which includes NodeID, address/host, and port.
8/ 💥 Ready to learn more? Check out my full article on "How to develop a Non-Custodial Bitcoin Lightning Wallet using Flutter and LDK" for in-depth insights and a step-by-step guide! 🔗 ⚡️🚀