Demo sending payments between Bitcoin and Litecoin Lightning Networks using Interledger
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README.md

BTC -> LTC Lightning Demo

Send payments between Lightning Networks using Interledger

This demo sends payments between instances of the Lightning Network on Bitcoin and Litecoin using an Interledger Connector and the Lightning Ledger Plugin.

Prerequisites

  • Node.js >= v7.10.0
  • Docker (only to run local Lightning nodes)

Running the Demo

0. Set Up Lightning Networks

You can skip this step if you already have 2 lightning nodes setup on the Bitcoin Lightning Network and 2 on the Litecoin Lightning Network.

The following uses BitFury's simple-simnet to run local testnets and Lightning daemons for both Bitcoin and Litecoin.

In one terminal run:

git clone https://github.com/BitfuryLightning/simple-simnet
cd simple-simnet
./bitcoin/build.sh
./bitcoin/start.sh

In another terminal run:

cd simple-simnet
./litecoin/build.sh
./litecoin/start.sh

1. Run an Interledger Connector

This will run a connector and automatically configure it to connect to the lnd nodes started in the previous step.

In a new terminal run:

git clone https://github.com/interledgerjs/ilp-lightning-demo
cd ilp-lightning-demo
npm install
node run-connector.js

To configure the connector to use different lnd nodes, set the environment variables BITCOIN_LND_1, BITCOIN_LND_2, LITECOIN_LND_1, LITECOIN_LND_2 to those lnd nodes' RPC endpoints.

2. Send a Payment

From another terminal run the following to send a payment from one of the Bitcoin lnd nodes to a Litecoin lnd node.

node send.js

(Run with the environment variable DEBUG=ilp* to see additional details of what is happening.)

How it Works

Interledger is a protocol for connecting payment networks or ledgers.

Connectors use ledger plugins to connect to different types of ledgers. This demo uses ilp-plugin-lightning to send payments through instances of the Lightning Network.

The Interledger packet is attached to transfers across individual ledgers and instructs connectors where to forward payments. Hashed-Timelock Agreements (HTLAs), a generalization of HTLCs, are used to secure Interledger payments.

For more information on Interledger, see interledger.org or the Interledger RFCs for the protocol specs.