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Why txindex is needed? in bitcoin.conf #2216

Answered by sstone
FranciscoOssian asked this question in Q&A
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LN nodes need to watch the blokchain to validate channels, and monitor their own channels and react when their funding transactions are spent. This requires indexing the blockchain.
There are basically 2 options:

  • rely on bitcoin core to to the indexing for you
  • download and index blocks yourself.

We've chosen to rely on bitcoin core a lot, for transaction indexes but also to manage funds (we use it as a wallet) and bump transactions. It has many advantages (we benefit from bitcoin core's funding and fee management capabilities, we're "stateless" wrt to the bitcoin blockchain) and drawbacks, such as requiring -txindex which is not compatible with -pruned.

One thing to keep in mind is that…

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