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install: Add note about macaroons and noencryptwallet
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MaxFangX committed Dec 22, 2017
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33 changes: 28 additions & 5 deletions guides/installation.md
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Expand Up @@ -151,11 +151,11 @@ To send this "special" HTLC type, include the `--debugsend` command at the end
of your `sendpayment` commands.


There are currently two primary ways to run `lnd`, one requires a local `btcd`
instance with the RPC service exposed, and the other uses a fully integrate
There are currently two primary ways to run `lnd`: one requires a local `btcd`
instance with the RPC service exposed, and the other uses a fully integrated
light client powered by [neutrino](https://github.com/lightninglabs/neutrino).

#### Running lnd in light client mode
#### Running lnd in Light Client Mode

In order to run `lnd` in its light client mode, you'll need to locate a
full-node which is capable of serving this new light client mode. A [BIP
Expand All @@ -165,8 +165,7 @@ running `roasbeef`'s fork of btcd. A public instance of such a node can be
found at `faucet.lightning.community`.

To run lnd in neutrino mode, run `lnd` with the following arguments, (swapping
in `--bitcoin.simnet` for `simnet` mode if needed), and also your own `btcd`
node if available:
in `--bitcoin.simnet` if needed), and also your own `btcd` node if available:
```
lnd --bitcoin.active --bitcoin.testnet --debuglevel=debug --neutrino.active --neutrino.connect=faucet.lightning.community
```
Expand All @@ -181,6 +180,29 @@ installing `lnd` in preparation for the
lnd --bitcoin.active --bitcoin.testnet --debuglevel=debug --bitcoin.rpcuser=kek --bitcoin.rpcpass=kek --externalip=X.X.X.X
```

#### Disabling Wallet Encryption

To disable encryption of the wallet files, pass the `--noencryptwallet` argument
to `lnd`. Obviously beware the security implications of running an unencrypted
wallet - this argument must only be used for testing purposes.

#### Macaroons

`lnd`'s authentication system is called **macaroons**, which are decentralized
bearer credentials allowing for delegation, attenuation, and other cool
features. You can learn more about them in Alex Akselrod's [writeup on
Github](https://github.com/lightningnetwork/lnd/issues/20).

Running `lnd` for the first time will by default generate the `admin.macaroon`,
`read_only.macaroon`, and `macaroons.db` files that are used to authenticate
into `lnd`. They will be stored in the default `lnd` data directory. Note that
if you specified an alternative data directory (via the `--datadir` argument),
you will have to additionally pass the updated location of the `admin.macaroon`
file into `lncli` using the `--macaroonpath` argument.

To disable macaroons for testing, pass the `--no-macaroons` flag into *both*
`lnd` and `lncli`.

#### Network Reachability

If you'd like to signal to other nodes on the network that you'll accept
Expand All @@ -206,6 +228,7 @@ Here's a sample `lnd.conf` to get you started:
debuglevel=trace
debughtlc=true
maxpendingchannels=10
noencryptwallet=true
[Bitcoin]
bitcoin.active=1
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