Payments in the lightning network use a series of HTLCs (hash time locked contracts) to send bitcoin across the network of payment channels - from a sending node to a receiving node. At each hop along the route, the HTLC that is added to the payment channel specifies the amount that is being paid (if a valid preimage is presented) and the absolute blockchain height at which the HTLC will expire. For a given route, these values are selected by applying the routing policies that each hop advertises which outline the fee that they charge for forwarding and the expiry delta (between incoming and outgoing HTLCs) that they require.

For this exercise, you will be required to write a program that produce the HTLC values for a given route.

Note that:

• This exercise does not require access to a bitcoin or lightning node to complete.
• This is not a pathfinding exercise, the input provided is the selected path.

Write a program in a language of your choosing that:

• Accepts three arguments:
  • 0: an absolute path to a csv file containing a set of hops in a lightning network route.
  • 1: a bech32-encoded regtest payment request, which provides the details of the payment to be made over the route.
  • 2: the current block height, expressed as a uint32.
• Uses the routing policies of the hops provided to produce the values for the HTLCs that will be used to make a payment for the amount and block height provided.
• Outputs the HTLC values for each hop to stdout, using the format that is described below.

This assignment is broken down into stages, starting with a basic route and adding complexity as the stages progress. To accommodate this, some of the inputs/outputs will be hardcoded in the beginning. You should write a single program that extends functionality as you progress thorough the steps. The output of your final program should be as described in step 3.

You may use external libraries to parse payment requests, but must write your own code for calculation of paths in the route and TLV encoding (in step 3).

Your solution should:

• Calculate fees as described in bolt7, using integer division.
• Obtain payment details (such as payment amount and minimum final CLTV delta) from the payment request.
• May assume that payment requests will always have a non-zero amount specified.

For this step, you will create for a simple payment route that uses a single HTLC.

The input file for your program will specify the hops for payment route that you will need to build, separated by newlines. The first hop in the file is a channel that is connected to your node, and the last hop is a channel that is connected to the destination node.

The CSV will have the following fields:

• path_id: a uint32, hardcoded to 0 for this step.
• channel_name: a string identifying the channel.
• cltv_delta: a uint32 representing the required delta for the hop.
• base_fee_msat: a uint64 fee expressed in millisatoshis charged per-htlc that uses the channel as an outgoing hop.
• proportional_fee_ppm: a uint64 representing the parts per million proportional fee on the htlc's amount charged to use the channel as an outgoing hop.

Given a simple route where Alice is sending a payment to Dave over the following topology:

Alice (sending node) -- Bob -- Carol -- Dave (receiving node)

The input CSV file will have the following structure:

path_id,channel_name,cltv_delta,base_fee_msat,proportional_fee_ppm
0,AliceBob,40,1000,10
0,BobCarol,65,2000,500
0,CarolDave,15,0,3000

Note that column headings will be included for the input file.

Each channel in the lightning network has two forwarding policies, one for each direction, advertised by each node. For simplicity, we have only included the policies in the direction that your payment will be propagated.

The example input above represents the following channel_update policies being advertised:

• Alice requires a cltv_delta=40, fee_base_msat=1000 and fee_proportional_millionths=10 to forward HTLCs over her channel with Bob.
• Bob requires a cltv_delta=65, fee_base_msat=2000 and fee_proportional_millionths=500 to forward HTLCs over his channel with Carol.
• Carol requires a cltv_delta=15, fee_base_msat=0 and fee_proportional_millionths=3000 to forward HTLCs over her channel with Dave.

Your program will be expected to output each hop of the constructed route to stdout with the following values:

• path_id: a uint32, hardcoded to 0 for this step.
• channel_name: the string identifying the channel.
• htlc_amount_msat: a uint64 representing the htlc amount on that channel.
• htlc_expiry: a uint32 representing the expiry height of the htlc.
• tlv: a string, hardcoded to NULL

For the example above, your output should have the following format:

0,AliceBob,amount,expiry,NULL
0,BobCarol,amount,expiry,NULL
0,CarolDave,amount,expiry,NULL

Note that you do not need to include CSV headings in your output, but you must trim all whitespace.

For this step, you will create a payment route that uses multiple HTLCs to pay a single payment. This is called a "multi-part payment", and is often used in the network today to break up large payments to improve their chances of successfully propagating through the network.

The path_id input variable that was hardcoded in the previous exercise will be set to represent the various paths your multi-part payment should take. You must split the payment amount equally between the number of paths provided in the input file. You may assume that the payment amount will always be divisible by the number of paths.

Given the following routes that Alice will use to pay dave over the following topology:

Alice (sending node) -- Bob -- Carol -- Dave (receiving node)
Alice (sending node) -- Eve -- Dave (receiving node)
Alice (sending node) -- Fred -- George -- Dave (receiving node)

The input CSV file will have the following structure:

path_id,channel_name,cltv_delta,base_fee_msat,proportional_fee_ppm
0,AliceBob,40,1000,10
0,BobCarol,65,2000,500
0,CarolDave,15,0,3000
1,AliceEve,20,5000,20
1,EveDave,40,15,2500
2,AliceFred,50,1000,50
2,FredGeorge,20,1000,0
2,GeorgeDave,45,10000,10

If provided an invoice of 120 satoshis, your solution should send 40 satoshis over each of these paths (not including fees).

Your output should set the path_id field for the paths you have calculated to correspond with the values provided in the input file. Hops must be in-order, and the file should have the same path_id ordering as the input file (ascending).

For the example above, your output should have the following format.

0,AliceBob,amount,expiry,NULL
0,BobCarol,amount,expiry,NULL
0,CarolDave,amount,expiry,NULL
1,AliceEve,amount,expiry,NULL
1,EveDave,amount,expiry,NULL
2,AliceFred,amount,expiry,NULL
2,FredGeorge,amount,expiry,NULL
2,GeorgeDave,amount,expiry,NULL

The lightning protocol uses type length value (TLV) encoded fields to flexibly extend the protocol's functionality. These values can optionally be included at any hop in a lightning payment.

For MPP payments, we include a payment_data TLV with the following information in the last hop of each path:

• A 32 byte payment_secret (called a payment_address in LND)
• A uint64 total_msat field which contains the total amount being paid across all HTLCs

Both of these values can be obtained from the payment request that is provided as an argument.

The TLV is specified as follows:

type [uint64]: 8
length [uint64]: 40

values [40 bytes]:
  32 bytes: payment_secret
  8 bytes: uint64 total_msat

Note: for the purposes of this exercise we will use simplified (less efficient). The actual specification of this record uses big size encoding to save space on the wire.

Do not include a MPP field for inputs that only make a payment over a single path.

The input format for this step is unchanged from the previous one.

For the purposes of this example, assume that the payment address and total amount are as follows:

• payment_secret: b3c3965128b05c96d76348158f8f3a1b92e2847172f9adebb400a9e83e62f066 (hex encoded)
• total_msat: 120

Your output should update the tlv string to include the hex-encoded TLV that should be included with the MPP payment. Hops that do not require an additional tlv payload should still have NULL values.

0,AliceBob,amount,expiry,NULL
0,BobCarol,amount,expiry,NULL
0,CarolDave,amount,expiry,00000000000000080000000000000028b3c3965128b05c96d76348158f8f3a1b92e2847172f9adebb400a9e83e62f0660000000000000078
1,AliceEve,amount,expiry,NULL
1,EveDave,amount,expiry,00000000000000080000000000000028b3c3965128b05c96d76348158f8f3a1b92e2847172f9adebb400a9e83e62f0660000000000000078
2,AliceFred,amount,expiry,NULL
2,FredGeorge,amount,expiry,NULL
2,GeorgeDave,amount,expiry,00000000000000080000000000000028b3c3965128b05c96d76348158f8f3a1b92e2847172f9adebb400a9e83e62f0660000000000000078

There is no autograder to check the validity of your solution for this assignment. There are two tests included with the assignment:

• Sanity check: a basic check that your run.sh is working.
• Done: a test that intentionally fails until you update done.sh to signal that your assignment is ready for manual grading.
  • You must only fix this test when you are ready to be graded, you will not get a second chance at submission.

Once you have completed the steps, submit the following to the submissions folder:

• The source code for your solution.
• Bash script in run.sh that will run your program with the arguments provided.
  • Expect this script to be run from within the submissions directory, i.e: ./run.sh {input.csv path} {payment_request} {height} with the arguments provided.
• When you are satisfied with your solution, follow the instruction in done.sh to signal that you are ready for manual assessment.