Everlight Nodes

4.1 Role of Everlight Nodes

Everlight Nodes constitute the fundamental operational infrastructure of the Bitcoin Everlight network. These nodes function as the primary validation, routing, and processing agents within the system, collectively forming a decentralized network that enables lightweight Bitcoin transactions. Each node maintains a partial network state sufficient for transaction validation without requiring the complete Bitcoin blockchain history.

The core responsibilities of Everlight Nodes include:

1. Transaction validation and verification

2. Efficient routing of payment instructions

3. Lightweight consensus participation

4. Maintenance of recent transaction history

5. Optional participation in settlement anchoring to Bitcoin

In contrast to Lightning Network nodes, Everlight Nodes operate with significantly reduced complexity. They do not require channel establishment, liquidity management, or complex multi-hop path calculations. This operational simplicity reduces the technical overhead for node operators while maintaining the essential functions required for a reliable transaction layer.

4.2 Node Participation Requirements

Participation in the Everlight Node network requires meeting specific minimum technical and operational criteria designed to ensure network reliability while maintaining accessibility.

Definition 1: An Everlight Node must satisfy the following conditions:

1. Maintain consistent network connectivity with minimum bandwidth capacity sufficient for transaction routing

2. Provide adequate uptime to support network operations

3. Meet baseline computational specifications for transaction validation

4. Implement the standardized Everlight Node protocol

The uptime requirement can be formally expressed as:

$$U = \frac{t_{\text{online}}}{t_{\text{total}}}$$

Where:

• $U$ represents the node’s uptime coefficient

• $t_{\text{online}}$ represents the time the node is operational and connected to the network

• $t_{\text{total}}$ represents the total time in the measurement period

For a node to maintain eligibility in the network, its uptime coefficient must satisfy:

$$U \geq U_{\text{min}}$$

Where $U_{\text{min}}$ is the minimum uptime threshold established by network parameters. This threshold ensures that the network maintains sufficient node availability to process transactions reliably.

The computational requirements for operating an Everlight Node are deliberately designed to be lightweight, enabling participation on standard consumer hardware. This approach contrasts with full Bitcoin nodes that require significant storage and processing capabilities to maintain the complete blockchain.

4.3 Lightweight Routing Mechanics

Everlight Nodes implement a streamlined routing approach that focuses on efficient transaction propagation without the complexities of managing channel states or tracking liquidity allocations. Nodes perform lightweight verification of transactions to ensure validity while minimizing computational overhead.

The routing confirmation function can be conceptually represented as:

$$C(T) = f(V, S, R)$$

Where:

• $C(T)$ represents the confirmation status of transaction $T$

• $V$ represents the set of basic transaction validity checks

• $S$ represents sequence and ordering validations

• $R$ represents routing availability factors

The validity checks ($V$) include verification of digital signatures, proper transaction formatting, and sufficient balance for the operation. Sequence checks ($S$) ensure proper transaction ordering and prevent double-spending attempts within the Everlight layer. Routing availability ($R$) confirms that the transaction can be successfully propagated to its destination through the network.

For a transaction to be confirmed, all elements of the confirmation function must evaluate positively:

$$C(T) = \begin{cases} \text{Confirmed,} & \text{if } f(V, S, R) = \text{True} \ \text{Rejected,} & \text{otherwise} \end{cases}$$

This lightweight approach enables rapid transaction confirmations while maintaining essential security properties.

4.4 Fee and Reward Model (High-Level)

The Everlight Node network incorporates an incentive structure that rewards nodes for their contributions to network operations. This reward system is designed to ensure sufficient node participation while maintaining low transaction costs for users.

The reward function for an individual node can be expressed as:

$$R_{\text{node}} = \alpha \cdot F_{\text{routed}} + \beta \cdot U + \gamma \cdot P$$

Where:

• $R_{\text{node}}$ represents the total rewards earned by a node

• $F_{\text{routed}}$ represents fees earned from transactions routed through the node

• $U$ represents the uptime coefficient as defined in Section 4.2

• $P$ represents a performance multiplier based on node efficiency and reliability

• $\alpha$, $\beta$, and $\gamma$ are fixed network parameters that weight each component

The routing fees ($F_{\text{routed}}$) are derived from the micropayments associated with each transaction processed by the node. The uptime component ($\beta \cdot U$) rewards consistent node availability, which is crucial for network reliability. The performance multiplier ($P$) incentivizes nodes to optimize their operational efficiency, including factors such as response time and successful routing ratio.

The specific values for parameters $\alpha$, $\beta$, and $\gamma$ will be precisely defined in subsequent technical specifications to ensure optimal network economics. These parameters may be adjusted through governance processes to maintain network equilibrium as operational conditions evolve.

4.5 Transaction Lifecycle Through a Node (Algorithmic Description)

The transaction lifecycle through an Everlight Node follows a defined sequence of operations designed for efficiency and reliability. This process can be represented algorithmically as follows:

Algorithm 1: Transaction Processing

function ProcessTransaction(T):
    // Step 1: Receive transaction request
    T_request ← ReceiveTransaction()
    
    // Step 2: Validate transaction inputs
    if not ValidateTransaction(T_request):
        return REJECT_INVALID
    
    // Step 3: Broadcast routing proposal
    routing_status ← BroadcastRoutingProposal(T_request)
    if not routing_status.successful:
        return REJECT_ROUTING_FAILURE
    
    // Step 4: Reach lightweight consensus with neighboring nodes
    consensus_result ← AttemptConsensus(T_request, neighboring_nodes)
    if not consensus_result.reached:
        return REJECT_CONSENSUS_FAILURE
    
    // Step 5: Return confirmation
    SendConfirmation(T_request.sender, T_request.recipient)
    
    // Step 6: (Optional) Include in settlement batch
    if SettlementBatchThresholdReached():
        AddToSettlementBatch(T_request)
    
    return CONFIRMATION_SUCCESS

This algorithm represents the conceptual flow of transaction processing without delving into implementation-specific details. The lightweight consensus mechanism (Step 4) involves coordination among a subset of nodes rather than global network consensus, enabling rapid transaction confirmation while maintaining sufficient security assurances.

4.6 Node Security Model

The Everlight Node security model employs a pragmatic approach that balances transaction speed with security guarantees. This model operates under several key assumptions:

1. Nodes perform basic cryptographic validation of all transactions.

2. A distributed set of nodes participates in transaction verification, reducing centralization risks.

3. The optional settlement anchoring mechanism provides additional security for high-value or sensitive transactions.

It is important to clarify that Everlight Nodes do not perform the full Bitcoin verification process that involves validating against the complete blockchain history. This design decision enables the lightweight nature of the system but introduces a different security profile compared to base-layer Bitcoin transactions.

The settlement anchoring mechanism serves as a security reinforcement by periodically recording transaction batches to the Bitcoin blockchain. This can be expressed as:

$$S(B_i) = \text{AnchorToBitcoin}(H(B_i))$$

Where:

• $S(B_i)$ represents the settlement operation for batch $B_i$

• $H(B_i)$ represents a cryptographic hash of the transaction batch

• $\text{AnchorToBitcoin}$ represents the process of recording this hash to the Bitcoin blockchain

This anchoring process provides a security bridge between the lightweight Everlight layer and Bitcoin’s robust consensus mechanism, allowing users to benefit from both the speed of Everlight and the ultimate security guarantees of Bitcoin when required.

4.7 Summary

Everlight Nodes provide the essential infrastructure for Bitcoin Everlight’s lightweight transaction layer. Through their streamlined design, these nodes enable efficient, low-cost Bitcoin transactions without the operational complexity associated with existing scaling solutions. The node architecture emphasizes accessibility and simplicity while maintaining the necessary security properties for everyday transaction use cases.

The node reward structure ensures economic sustainability of the network, incentivizing consistent uptime and reliable performance. By eliminating channel management and complex routing algorithms, Everlight Nodes substantially lower the barrier to participation compared to Lightning Network nodes.

The combination of lightweight validation, efficient routing mechanics, and optional settlement anchoring creates a balanced approach to Bitcoin scaling. This approach preserves Bitcoin’s fundamental security model while addressing its practical limitations for everyday transactions, positioning Bitcoin Everlight as a complementary layer that enhances Bitcoin’s utility without modifying its core protocol.