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More FAQ/Concepts added
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@@ -162,3 +162,16 @@ Bitcoin Full Node
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The Embassy runs a Bitcoin Full Node. When most people say "full node" what they mean (or should mean) is "fully validating node", meaning that the node is capable of enforcing the consensus rules of Bitcoin by accepting, validating, and relaying every transaction and block produced by the network. Fully validating nodes are necessary for Bitcoin to exist and function properly and are what protect the network from attackers attempting to bypass the consensus rules. A fully validating node (aka full node) does not need to store the entire blockchain to accomplish this. A node that stores the entire blockchain is called a "full archival node". It is the same as a full node, except that it stores every single valid transaction and block ever produced by the network. There are not many reasons why an individual would want to run a full archival node. Most of the benefits of node operatorship are encompassed by a basic full node described above. Full archival nodes have the added benefit of enabling a block explorer. For instace, if you were interested in looking up the history of a particular address or viewing the details of a transaction, neither of which were your own. If an address or transaction is your own, you can view those details using a pruned node.
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All that said, it will soon be possible to run a full archival node with he embassy, should you determine you want block explorer functionality. This will require plugging in an external hard drive to the embassy and changing a setting in the app, and also a resycnhing of the blockchain from genesis.
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Bitcoin wallets
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===============
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The word "wallet" has come to mean a lot of things, depending on who you ask and what software you are using. There are (1) software "wallets", (2) hardware "wallets", (3) seed "wallets", and (4) branch "wallets". The one thing all these wallets have in common is that they have almost nothing in common. As the terms are used today, here is usually what they mean.
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(1) SOFTWARE WALLETS - (such as FullyNoded and Specter) Software applications capable of interfacing with hardware wallets (see below), interfacing with one or more nodes, as well as address creation, transaction creation, transaction broadcasting, and transaction display. Most software wallets are also capable of creating and storing public/private keypairs, granting them properties of both hardware wallets (see below) and seed wallets (see below). When we say "wallet", we are referring to software applications that posses a user interface for interacting with the Bitcoin network. If a wallet is capable of creating, storing and using private keys, it should be referred to as just a wallet with signer ability.
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(2) HARDWARE WALLETS – (such as ColdCard and Trezor) Physical devices that create and store public/private keypairs, exporting the public keys, NEVER exporting the private keys, and using the private keys to sign transactions on demand. Hardware wallets must interface with a software wallet in order to be useful to a user. For this reason, some have proposed renaming hardware wallets to "hardware signers" for clarity.
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(3) SEED WALLETS - Basically just the root of a hierarchical deterministic tree of keypairs. It usually takes the form of a mnemonic phrase of 12 or 24 words. Why people refer to their mnemonic seed as a "wallet" is confusing. Just call it a seed.
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(4) BRANCH WALLETS - This is how Specter uses the word wallet, and it is causing a lot of confusion. Whenever you create a new "wallet" in specter, you are actually creating a new hierarchical deterministic branch of your mnemonic seed - or in the case of multisig, multiple seeds. The branch you create can be based on "purpose" (segwit, non-segwit, single-sig, multi-sig, etc), "coin type" (Bitcoin, Doegecoin, etc), or "account" (for personal accounting). Change any of these parameters, and you have yourself a new wallet, which again is just a different branch of the same mnemonic seed that potentially abides by a different set of rules. Perhaps a better name for this concept is "bank". Instead of "wallets", you should be able to create different "banks" from your seed.
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@@ -218,6 +218,31 @@ Is it insecure to run a pruned node?
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------------------------------------
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As a user, pruned nodes and archival nodes provide you the same security. In a larger sense, if 100% of people ran pruned nodes, the security of the network could be in dire circumstances and be put at risk if no nodes kept history, as then no one could bootstrap new nodes. The reality however, is that most Embassy owners are new node operators, so there is no net systemic risk introduced.
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Why would I want to run a lightning node?
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-----------------------------------------
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The Lightning Network (LN) is a second 'layer,' built on top of the Bitcoin Protocol. As a result all transactions on LN are backed up by the full security of the Bitcoin network. Lightning is designed for instant payments between nodes, but similar to running a Bitcoin node, running your own is the only way to be sovereign. When you have your own node, you will have the convenience of linking a Lightning wallet, for use on the go. It is also possible to earn an income (granted a very small one at this time), if you are willing to learn how to become a 'routing node.'
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Are there any resources for learning about how to use Bitcoin and the Lightning Network?
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----------------------------------------------------------------------------------------
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It may be helpful to start `here <lopp.net/bitcoin>`_ for Bitcoin and `here <lopp.net/lightning>`_ for Lightning.
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I opened a Lightning channel, but my local balance is lower than I expected. Where is the remainder?
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-----------------------------------------------------------------------------------------------------
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A fee to close the channel (onchain) is set aside at opening.
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How is that fee estimation calculated?
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--------------------------------------
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The commitment fees are automatically negotiated every few blocks with your peer. They are on chain txs like all channel closes but they are not broadcast until you attempt to close the channel.
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What would happen if I shut down an Embassy that is running a Lightning node with open channels?
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------------------------------------------------------------------------------------------------
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It is REALLY IMPORTANT that people understand that if they shut off their Lightning services for long periods of time (days on end) it is possible for your peers to cheat you out of money. If you are not prepared to LOSE ALL THE MONEY IN YOUR CHANNELS, KEEP YOUR NODE RUNNING.
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That said, malicious actors on the network right now are probably sparse, however you are still open to that risk if you do not keep your node online.
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Is there a solution to this?
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----------------------------
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Yes, the concept of a Watchtower was originally conceptualized in the LN whitepaper. A Watchtower is simply a lightning node to which you can give the authority to monitor transactions associated with your open payment channels.
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Is a wallet vulnerable to hacking if it’s always online??
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-------------------------------------------------------
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Funds are not stored on the node typically. The node simply serves as a source of truth for the state of the blockchain. Attacks depend on where the keys are and where the signing happens. You can use something like a hardware wallet for better security. Though, to be fair, a lot of attacks depend on you or your machine being targeted specifically, and a whole bunch of attack vectors are highly theoretical and obscure.
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@@ -11,6 +11,8 @@ Download the Setup App
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`Google Play <https://play.google.com/store/apps/details?id=com.start9labs.setup>`_
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`APK direct download <https://github.com/Start9Labs/setup-app/releases>`_
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Power On
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========
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