<p>Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.</p>

<p>The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.</p>

<p>This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.</p>

CC BY-SA 4.0
2018-12-14T19:42:12.213Z
Thanks for this clarification.  So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?
Dave
CC BY-SA 4.0
2018-12-14T19:45:16.000Z
Pretty much yeah, 6 confirmations or so ...
James C.
CC BY-SA 4.0
2018-12-14T20:43:55.580Z
Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: https://bitcoin.stackexchange.com/q/79580/63872
chytrik
CC BY-SA 4.0
2018-12-14T18:08:21.760Z
2018-12-14T18:08:21.760Z
James C.
<p>I'm trying to better understand the Lightning Network.  I was reading this article -- <a href="https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e" rel="nofollow noreferrer">https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e</a> .  My question is, when two parties create a channel and one or both commit funds to that channel, is the committing of those funds an actual transaction on the Bitcoin network?  That is, can the two parties involved only start using the channel when that transaction has been settled on the Bitcoin network?</p>

<transactions><lightning-network><ln-opening-channels>
To create a channel on the Lightning Network, do you have to execute an actual transaction?
Dave
# To create a channel on the Lightning Network, do you have to execute an actual transaction?

(Asked by: username_0 on 2018-12-14)

I'm trying to better understand the Lightning Network. I was reading this article -- <https://medium.com/coinmonks/lightning-network-how-does-it-work-ceeeda8ad21e> . My question is, when two parties create a channel and one or both commit funds to that channel, is the committing of those funds an actual transaction on the Bitcoin network? That is, can the two parties involved only start using the channel when that transaction has been settled on the Bitcoin network?

**Tags:** transactions, lightning-network, ln-opening-channels


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## 1 answers

### Answer by username_1 on 2018-12-14. Score: 4 | Accepted answer

Yes, a channel opening involves creating and signing 3 transactions, and broadcasting just one.

The transaction to be broadcast funds the channel, and spends to a multisig output. It is signed by whomever chooses to fund the channel. When this funding tx receives sufficient confirmation, the channel is considered open.

This multisig output is spent by two commitment transactions signed by both payment channel peers, but not broadcast. Each peer stores its own commitment transaction and only broadcasts it if it decides to unilaterally close the channel.

> **Comments:**
> **username_0**: Thanks for this clarification.  So this might be really obvious, but in as far as the broadcasted transaction funds the channel and Bitcoin transactions usually take an hour to be confirmed, I assume that means folks can't start using the channel until that confirmation occurs an hour later?  
> **username_1**: Pretty much yeah, 6 confirmations or so ...  
> **username_2**: Here’s a link to a question has a lot of related info about pending channels, the number of confirmations required before using the channel is a configurable option: https://bitcoin.stackexchange.com/q/79580/63872  

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