<p>The documentation you are following is using the <code>bitcoind</code> wallet, so the address generated in Step1 will be derived from your <code>bitcoind</code> master private key. </p>

<p>Checking the current <a href="https://github.com/ElementsProject/lightning" rel="nofollow noreferrer">c-lightning documentation</a>, this seems outdated, step 3 and 4 are no longer needed.</p>

<ul>
<li>Q1: this returns an address from the <code>bitcoind</code> wallet</li>
<li>Q2: you send a bitcoin transaction from any wallet you like, here the local <code>bitcoind</code> (Bitcoin Core) node is used.</li>
<li>Q4: here, you notify <code>lightningd</code> to use the funds when opening channels. But no channel is opened and thus no funds are committed to the Lightning Network yet. (as mentioned, seems obsolete now with current release)</li>
</ul>

CC BY-SA 4.0
2018-05-03T19:03:26.757Z
2018-05-03T19:03:26.757Z
Stadicus
<p>In trying to understand the Lightning Network further. To do so, I was looking at the link below (it shows how it is being used with Docker):
<a href="https://hub.docker.com/r/cdecker/lightning-ci/" rel="nofollow noreferrer">https://hub.docker.com/r/cdecker/lightning-ci/</a></p>

<p>Based on the information in the link, I had questions.</p>

<ul>
<li><strong>STEP 1</strong>: # Returns an address  cli/lightning-cli newaddr<br>
<strong>^^^^ Ques</strong>: Is this a new address created on LIGHTNING NETWORK? Is it on the BITCOIN NETWORK? Is it in "No-Mans-Land/Purgatory"? Where
is the Private-Key? Can many addresses be created?</li>
<li><strong>STEP</strong> 2: # Returns a transaction id  bitcoin-cli -testnet sendtoaddress  <br>
<strong>^^^^ Ques</strong>: So, if you forget / lose this address (after sending money to it), you are out-of-luck? Also, "bitcoin-cli" commands are
executed under the "btcd" BITCOIN dameon?</li>
<li><strong>STEP 3</strong>: # Retrieves the raw transaction  bitcoin-cli -testnet getrawtransaction </li>
<li><strong>STEP 4</strong>: # Notifies <code>lightningd</code> that there are now funds available: cli/lightning-cli addfunds 
<strong>^^^^ Ques</strong>: It is at this point the funds are <em>actually</em> added to the LIGHTNING NETWORK. I take it that the funds are associated with
the  created in STEP 1 above?</li>
</ul>

<p>TIA</p>

<bitcoind><lightning-network>
Using Docker version of Lightning Network daemon to gain understanding
Casey Harrils
# Using Docker version of Lightning Network daemon to gain understanding

(Asked by: username_0 on 2018-04-13)

In trying to understand the Lightning Network further. To do so, I was looking at the link below (it shows how it is being used with Docker):
<https://hub.docker.com/r/cdecker/lightning-ci/>

Based on the information in the link, I had questions.

* **STEP 1**: # Returns an address cli/lightning-cli newaddr  
  **^^^^ Ques**: Is this a new address created on LIGHTNING NETWORK? Is it on the BITCOIN NETWORK? Is it in "No-Mans-Land/Purgatory"? Where
  is the Private-Key? Can many addresses be created?
* **STEP** 2: # Returns a transaction id bitcoin-cli -testnet sendtoaddress   
  **^^^^ Ques**: So, if you forget / lose this address (after sending money to it), you are out-of-luck? Also, "bitcoin-cli" commands are
  executed under the "btcd" BITCOIN dameon?
* **STEP 3**: # Retrieves the raw transaction bitcoin-cli -testnet getrawtransaction
* **STEP 4**: # Notifies `lightningd` that there are now funds available: cli/lightning-cli addfunds
  **^^^^ Ques**: It is at this point the funds are *actually* added to the LIGHTNING NETWORK. I take it that the funds are associated with
  the created in STEP 1 above?

TIA

**Tags:** bitcoind, lightning-network


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## 1 answers

### Answer by username_1 on 2018-05-03. Score: 0 | Accepted answer

The documentation you are following is using the `bitcoind` wallet, so the address generated in Step1 will be derived from your `bitcoind` master private key.

Checking the current [c-lightning documentation](https://github.com/ElementsProject/lightning), this seems outdated, step 3 and 4 are no longer needed.

* Q1: this returns an address from the `bitcoind` wallet
* Q2: you send a bitcoin transaction from any wallet you like, here the local `bitcoind` (Bitcoin Core) node is used.
* Q4: here, you notify `lightningd` to use the funds when opening channels. But no channel is opened and thus no funds are committed to the Lightning Network yet. (as mentioned, seems obsolete now with current release)


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