What is ExitPay ? ExitPay is a third-party host which self-hosts a BTCPay Server instance and enables other users to register and use the server for free. While, third-party hosts provide an easy and cost-effective way for users to try…
Tag: Balance
The balance of a payment channel is the amount of bitcoin that belongs to each channel partner. For example, Alice could open a channel with Bob for the value of 1 BTC. The channel balance is then 1 BTC to Alice and 0 BTC to Bob. As the users transact the channel balance will update. For e.g. if Alice sends 0.2 BTC to Bob, then the balance is now 0.8 BTC to Alice and 0.2 to Bob. When the channel is closed the bitcoin in the channel will be divided between the two channel partners according to the latest balance encoded in the commitment transaction. In the Lightning Network the ability to send and receive payments is limited by channel balances.