Debug-log monitor update starts and completions in `ChainMonitor`
[rust-lightning] / lightning / src / chain / chainmonitor.rs
index b3b62a2e8706f96a1ddf82146b7260e63bc91796..6e824d1e111e5b288277f008547a30afb7bcf3e8 100644 (file)
 //! events. The remote server would make use of [`ChainMonitor`] for block processing and for
 //! servicing [`ChannelMonitor`] updates from the client.
 
-use bitcoin::blockdata::block::BlockHeader;
+use bitcoin::blockdata::block::Header;
 use bitcoin::hash_types::{Txid, BlockHash};
 
 use crate::chain;
 use crate::chain::{ChannelMonitorUpdateStatus, Filter, WatchedOutput};
 use crate::chain::chaininterface::{BroadcasterInterface, FeeEstimator};
-use crate::chain::channelmonitor::{ChannelMonitor, ChannelMonitorUpdate, Balance, MonitorEvent, TransactionOutputs, LATENCY_GRACE_PERIOD_BLOCKS};
+use crate::chain::channelmonitor::{ChannelMonitor, ChannelMonitorUpdate, Balance, MonitorEvent, TransactionOutputs, WithChannelMonitor, LATENCY_GRACE_PERIOD_BLOCKS};
 use crate::chain::transaction::{OutPoint, TransactionData};
-use crate::sign::WriteableEcdsaChannelSigner;
+use crate::sign::ecdsa::WriteableEcdsaChannelSigner;
 use crate::events;
 use crate::events::{Event, EventHandler};
 use crate::util::atomic_counter::AtomicCounter;
-use crate::util::logger::Logger;
+use crate::util::logger::{Logger, WithContext};
 use crate::util::errors::APIError;
 use crate::util::wakers::{Future, Notifier};
 use crate::ln::channelmanager::ChannelDetails;
@@ -44,26 +44,38 @@ use crate::prelude::*;
 use crate::sync::{RwLock, RwLockReadGuard, Mutex, MutexGuard};
 use core::iter::FromIterator;
 use core::ops::Deref;
-use core::sync::atomic::{AtomicBool, AtomicUsize, Ordering};
+use core::sync::atomic::{AtomicUsize, Ordering};
 use bitcoin::secp256k1::PublicKey;
 
-#[derive(Clone, Copy, Hash, PartialEq, Eq)]
-/// A specific update's ID stored in a `MonitorUpdateId`, separated out to make the contents
-/// entirely opaque.
-enum UpdateOrigin {
-       /// An update that was generated by the `ChannelManager` (via our `chain::Watch`
-       /// implementation). This corresponds to an actual [`ChannelMonitorUpdate::update_id`] field
-       /// and [`ChannelMonitor::get_latest_update_id`].
-       OffChain(u64),
-       /// An update that was generated during blockchain processing. The ID here is specific to the
-       /// generating [`ChainMonitor`] and does *not* correspond to any on-disk IDs.
-       ChainSync(u64),
+mod update_origin {
+       #[derive(Debug, Clone, Copy, Hash, PartialEq, Eq)]
+       /// A specific update's ID stored in a `MonitorUpdateId`, separated out to make the contents
+       /// entirely opaque.
+       pub(crate) enum UpdateOrigin {
+               /// An update that was generated by the `ChannelManager` (via our [`crate::chain::Watch`]
+               /// implementation). This corresponds to an actual [ChannelMonitorUpdate::update_id] field
+               /// and [ChannelMonitor::get_latest_update_id].
+               ///
+               /// [ChannelMonitor::get_latest_update_id]: crate::chain::channelmonitor::ChannelMonitor::get_latest_update_id
+               /// [ChannelMonitorUpdate::update_id]: crate::chain::channelmonitor::ChannelMonitorUpdate::update_id
+               OffChain(u64),
+               /// An update that was generated during blockchain processing. The ID here is specific to the
+               /// generating [ChannelMonitor] and does *not* correspond to any on-disk IDs.
+               ///
+               /// [ChannelMonitor]: crate::chain::channelmonitor::ChannelMonitor
+               ChainSync(u64),
+       }
 }
 
+#[cfg(any(feature = "_test_utils", test))]
+pub(crate) use update_origin::UpdateOrigin;
+#[cfg(not(any(feature = "_test_utils", test)))]
+use update_origin::UpdateOrigin;
+
 /// An opaque identifier describing a specific [`Persist`] method call.
-#[derive(Clone, Copy, Hash, PartialEq, Eq)]
+#[derive(Debug, Clone, Copy, Hash, PartialEq, Eq)]
 pub struct MonitorUpdateId {
-       contents: UpdateOrigin,
+       pub(crate) contents: UpdateOrigin,
 }
 
 impl MonitorUpdateId {
@@ -78,27 +90,51 @@ impl MonitorUpdateId {
 /// `Persist` defines behavior for persisting channel monitors: this could mean
 /// writing once to disk, and/or uploading to one or more backup services.
 ///
-/// Each method can return three possible values:
-///  * If persistence (including any relevant `fsync()` calls) happens immediately, the
-///    implementation should return [`ChannelMonitorUpdateStatus::Completed`], indicating normal
-///    channel operation should continue.
-///  * If persistence happens asynchronously, implementations should first ensure the
-///    [`ChannelMonitor`] or [`ChannelMonitorUpdate`] are written durably to disk, and then return
-///    [`ChannelMonitorUpdateStatus::InProgress`] while the update continues in the background.
-///    Once the update completes, [`ChainMonitor::channel_monitor_updated`] should be called with
-///    the corresponding [`MonitorUpdateId`].
+/// Persistence can happen in one of two ways - synchronously completing before the trait method
+/// calls return or asynchronously in the background.
+///
+/// # For those implementing synchronous persistence
+///
+///  * If persistence completes fully (including any relevant `fsync()` calls), the implementation
+///    should return [`ChannelMonitorUpdateStatus::Completed`], indicating normal channel operation
+///    should continue.
+///
+///  * If persistence fails for some reason, implementations should consider returning
+///    [`ChannelMonitorUpdateStatus::InProgress`] and retry all pending persistence operations in
+///    the background with [`ChainMonitor::list_pending_monitor_updates`] and
+///    [`ChainMonitor::get_monitor`].
+///
+///    Once a full [`ChannelMonitor`] has been persisted, all pending updates for that channel can
+///    be marked as complete via [`ChainMonitor::channel_monitor_updated`].
+///
+///    If at some point no further progress can be made towards persisting the pending updates, the
+///    node should simply shut down.
+///
+///  * If the persistence has failed and cannot be retried further (e.g. because of an outage),
+///    [`ChannelMonitorUpdateStatus::UnrecoverableError`] can be used, though this will result in
+///    an immediate panic and future operations in LDK generally failing.
+///
+/// # For those implementing asynchronous persistence
 ///
-///    Note that unlike the direct [`chain::Watch`] interface,
-///    [`ChainMonitor::channel_monitor_updated`] must be called once for *each* update which occurs.
+///  All calls should generally spawn a background task and immediately return
+///  [`ChannelMonitorUpdateStatus::InProgress`]. Once the update completes,
+///  [`ChainMonitor::channel_monitor_updated`] should be called with the corresponding
+///  [`MonitorUpdateId`].
 ///
-///  * If persistence fails for some reason, implementations should return
-///    [`ChannelMonitorUpdateStatus::PermanentFailure`], in which case the channel will likely be
-///    closed without broadcasting the latest state. See
-///    [`ChannelMonitorUpdateStatus::PermanentFailure`] for more details.
+///  Note that unlike the direct [`chain::Watch`] interface,
+///  [`ChainMonitor::channel_monitor_updated`] must be called once for *each* update which occurs.
 ///
-/// Third-party watchtowers may be built as a part of an implementation of this trait, with the
-/// advantage that you can control whether to resume channel operation depending on if an update
-/// has been persisted to a watchtower. For this, you may find the following methods useful:
+///  If at some point no further progress can be made towards persisting a pending update, the node
+///  should simply shut down. Until then, the background task should either loop indefinitely, or
+///  persistence should be regularly retried with [`ChainMonitor::list_pending_monitor_updates`]
+///  and [`ChainMonitor::get_monitor`] (note that if a full monitor is persisted all pending
+///  monitor updates may be marked completed).
+///
+/// # Using remote watchtowers
+///
+/// Watchtowers may be updated as a part of an implementation of this trait, utilizing the async
+/// update process described above while the watchtower is being updated. The following methods are
+/// provided for bulding transactions for a watchtower:
 /// [`ChannelMonitor::initial_counterparty_commitment_tx`],
 /// [`ChannelMonitor::counterparty_commitment_txs_from_update`],
 /// [`ChannelMonitor::sign_to_local_justice_tx`], [`TrustedCommitmentTransaction::revokeable_output_index`],
@@ -131,8 +167,8 @@ pub trait Persist<ChannelSigner: WriteableEcdsaChannelSigner> {
        /// updated monitor itself to disk/backups. See the [`Persist`] trait documentation for more
        /// details.
        ///
-       /// During blockchain synchronization operations, this may be called with no
-       /// [`ChannelMonitorUpdate`], in which case the full [`ChannelMonitor`] needs to be persisted.
+       /// During blockchain synchronization operations, and in some rare cases, this may be called with
+       /// no [`ChannelMonitorUpdate`], in which case the full [`ChannelMonitor`] needs to be persisted.
        /// Note that after the full [`ChannelMonitor`] is persisted any previous
        /// [`ChannelMonitorUpdate`]s which were persisted should be discarded - they can no longer be
        /// applied to the persisted [`ChannelMonitor`] as they were already applied.
@@ -180,12 +216,6 @@ struct MonitorHolder<ChannelSigner: WriteableEcdsaChannelSigner> {
        /// the ChannelManager re-adding the same payment entry, before the same block is replayed,
        /// resulting in a duplicate PaymentSent event.
        pending_monitor_updates: Mutex<Vec<MonitorUpdateId>>,
-       /// When the user returns a PermanentFailure error from an update_persisted_channel call during
-       /// block processing, we inform the ChannelManager that the channel should be closed
-       /// asynchronously. In order to ensure no further changes happen before the ChannelManager has
-       /// processed the closure event, we set this to true and return PermanentFailure for any other
-       /// chain::Watch events.
-       channel_perm_failed: AtomicBool,
        /// The last block height at which no [`UpdateOrigin::ChainSync`] monitor updates were present
        /// in `pending_monitor_updates`.
        /// If it's been more than [`LATENCY_GRACE_PERIOD_BLOCKS`] since we started waiting on a chain
@@ -282,15 +312,23 @@ where C::Target: chain::Filter,
        /// updated `txdata`.
        ///
        /// Calls which represent a new blockchain tip height should set `best_height`.
-       fn process_chain_data<FN>(&self, header: &BlockHeader, best_height: Option<u32>, txdata: &TransactionData, process: FN)
+       fn process_chain_data<FN>(&self, header: &Header, best_height: Option<u32>, txdata: &TransactionData, process: FN)
        where
                FN: Fn(&ChannelMonitor<ChannelSigner>, &TransactionData) -> Vec<TransactionOutputs>
        {
+               let err_str = "ChannelMonitor[Update] persistence failed unrecoverably. This indicates we cannot continue normal operation and must shut down.";
                let funding_outpoints: HashSet<OutPoint> = HashSet::from_iter(self.monitors.read().unwrap().keys().cloned());
                for funding_outpoint in funding_outpoints.iter() {
                        let monitor_lock = self.monitors.read().unwrap();
                        if let Some(monitor_state) = monitor_lock.get(funding_outpoint) {
-                               self.update_monitor_with_chain_data(header, best_height, txdata, &process, funding_outpoint, &monitor_state);
+                               if self.update_monitor_with_chain_data(header, best_height, txdata, &process, funding_outpoint, &monitor_state).is_err() {
+                                       // Take the monitors lock for writing so that we poison it and any future
+                                       // operations going forward fail immediately.
+                                       core::mem::drop(monitor_lock);
+                                       let _poison = self.monitors.write().unwrap();
+                                       log_error!(self.logger, "{}", err_str);
+                                       panic!("{}", err_str);
+                               }
                        }
                }
 
@@ -298,7 +336,10 @@ where C::Target: chain::Filter,
                let monitor_states = self.monitors.write().unwrap();
                for (funding_outpoint, monitor_state) in monitor_states.iter() {
                        if !funding_outpoints.contains(funding_outpoint) {
-                               self.update_monitor_with_chain_data(header, best_height, txdata, &process, funding_outpoint, &monitor_state);
+                               if self.update_monitor_with_chain_data(header, best_height, txdata, &process, funding_outpoint, &monitor_state).is_err() {
+                                       log_error!(self.logger, "{}", err_str);
+                                       panic!("{}", err_str);
+                               }
                        }
                }
 
@@ -313,13 +354,18 @@ where C::Target: chain::Filter,
                }
        }
 
-       fn update_monitor_with_chain_data<FN>(&self, header: &BlockHeader, best_height: Option<u32>, txdata: &TransactionData, process: FN, funding_outpoint: &OutPoint, monitor_state: &MonitorHolder<ChannelSigner>) where FN: Fn(&ChannelMonitor<ChannelSigner>, &TransactionData) -> Vec<TransactionOutputs> {
+       fn update_monitor_with_chain_data<FN>(
+               &self, header: &Header, best_height: Option<u32>, txdata: &TransactionData,
+               process: FN, funding_outpoint: &OutPoint, monitor_state: &MonitorHolder<ChannelSigner>
+       ) -> Result<(), ()> where FN: Fn(&ChannelMonitor<ChannelSigner>, &TransactionData) -> Vec<TransactionOutputs> {
                let monitor = &monitor_state.monitor;
+               let logger = WithChannelMonitor::from(&self.logger, &monitor);
                let mut txn_outputs;
                {
                        txn_outputs = process(monitor, txdata);
+                       let chain_sync_update_id = self.sync_persistence_id.get_increment();
                        let update_id = MonitorUpdateId {
-                               contents: UpdateOrigin::ChainSync(self.sync_persistence_id.get_increment()),
+                               contents: UpdateOrigin::ChainSync(chain_sync_update_id),
                        };
                        let mut pending_monitor_updates = monitor_state.pending_monitor_updates.lock().unwrap();
                        if let Some(height) = best_height {
@@ -331,19 +377,23 @@ where C::Target: chain::Filter,
                                }
                        }
 
-                       log_trace!(self.logger, "Syncing Channel Monitor for channel {}", log_funding_info!(monitor));
+                       log_trace!(logger, "Syncing Channel Monitor for channel {} for block-data update_id {}",
+                               log_funding_info!(monitor),
+                               chain_sync_update_id
+                       );
                        match self.persister.update_persisted_channel(*funding_outpoint, None, monitor, update_id) {
                                ChannelMonitorUpdateStatus::Completed =>
-                                       log_trace!(self.logger, "Finished syncing Channel Monitor for channel {}", log_funding_info!(monitor)),
-                               ChannelMonitorUpdateStatus::PermanentFailure => {
-                                       monitor_state.channel_perm_failed.store(true, Ordering::Release);
-                                       self.pending_monitor_events.lock().unwrap().push((*funding_outpoint, vec![MonitorEvent::UpdateFailed(*funding_outpoint)], monitor.get_counterparty_node_id()));
-                                       self.event_notifier.notify();
-                               }
+                                       log_trace!(logger, "Finished syncing Channel Monitor for channel {} for block-data update_id {}",
+                                               log_funding_info!(monitor),
+                                               chain_sync_update_id
+                                       ),
                                ChannelMonitorUpdateStatus::InProgress => {
-                                       log_debug!(self.logger, "Channel Monitor sync for channel {} in progress, holding events until completion!", log_funding_info!(monitor));
+                                       log_debug!(logger, "Channel Monitor sync for channel {} in progress, holding events until completion!", log_funding_info!(monitor));
                                        pending_monitor_updates.push(update_id);
-                               }
+                               },
+                               ChannelMonitorUpdateStatus::UnrecoverableError => {
+                                       return Err(());
+                               },
                        }
                }
 
@@ -359,10 +409,12 @@ where C::Target: chain::Filter,
                                                outpoint: OutPoint { txid, index: idx as u16 },
                                                script_pubkey: output.script_pubkey,
                                        };
-                                       chain_source.register_output(output)
+                                       log_trace!(logger, "Adding monitoring for spends of outpoint {} to the filter", output.outpoint);
+                                       chain_source.register_output(output);
                                }
                        }
                }
+               Ok(())
        }
 
        /// Creates a new `ChainMonitor` used to watch on-chain activity pertaining to channels.
@@ -391,7 +443,8 @@ where C::Target: chain::Filter,
        /// claims which are awaiting confirmation.
        ///
        /// Includes the balances from each [`ChannelMonitor`] *except* those included in
-       /// `ignored_channels`.
+       /// `ignored_channels`, allowing you to filter out balances from channels which are still open
+       /// (and whose balance should likely be pulled from the [`ChannelDetails`]).
        ///
        /// See [`ChannelMonitor::get_claimable_balances`] for more details on the exact criteria for
        /// inclusion in the return value.
@@ -480,7 +533,7 @@ where C::Target: chain::Filter,
                pending_monitor_updates.retain(|update_id| *update_id != completed_update_id);
 
                match completed_update_id {
-                       MonitorUpdateId { contents: UpdateOrigin::OffChain(_) } => {
+                       MonitorUpdateId { contents: UpdateOrigin::OffChain(completed_update_id) } => {
                                // Note that we only check for `UpdateOrigin::OffChain` failures here - if
                                // we're being told that a `UpdateOrigin::OffChain` monitor update completed,
                                // we only care about ensuring we don't tell the `ChannelManager` to restore
@@ -491,9 +544,16 @@ where C::Target: chain::Filter,
                                // `MonitorEvent`s from the monitor back to the `ChannelManager` until they
                                // complete.
                                let monitor_is_pending_updates = monitor_data.has_pending_offchain_updates(&pending_monitor_updates);
-                               if monitor_is_pending_updates || monitor_data.channel_perm_failed.load(Ordering::Acquire) {
-                                       // If there are still monitor updates pending (or an old monitor update
-                                       // finished after a later one perm-failed), we cannot yet construct an
+                               log_debug!(self.logger, "Completed off-chain monitor update {} for channel with funding outpoint {:?}, {}",
+                                       completed_update_id,
+                                       funding_txo,
+                                       if monitor_is_pending_updates {
+                                               "still have pending off-chain updates"
+                                       } else {
+                                               "all off-chain updates complete, returning a MonitorEvent"
+                                       });
+                               if monitor_is_pending_updates {
+                                       // If there are still monitor updates pending, we cannot yet construct a
                                        // Completed event.
                                        return Ok(());
                                }
@@ -502,8 +562,18 @@ where C::Target: chain::Filter,
                                        monitor_update_id: monitor_data.monitor.get_latest_update_id(),
                                }], monitor_data.monitor.get_counterparty_node_id()));
                        },
-                       MonitorUpdateId { contents: UpdateOrigin::ChainSync(_) } => {
-                               if !monitor_data.has_pending_chainsync_updates(&pending_monitor_updates) {
+                       MonitorUpdateId { contents: UpdateOrigin::ChainSync(completed_update_id) } => {
+                               let monitor_has_pending_updates =
+                                       monitor_data.has_pending_chainsync_updates(&pending_monitor_updates);
+                               log_debug!(self.logger, "Completed chain sync monitor update {} for channel with funding outpoint {:?}, {}",
+                                       completed_update_id,
+                                       funding_txo,
+                                       if monitor_has_pending_updates {
+                                               "still have pending chain sync updates"
+                                       } else {
+                                               "all chain sync updates complete, releasing pending MonitorEvents"
+                                       });
+                               if !monitor_has_pending_updates {
                                        monitor_data.last_chain_persist_height.store(self.highest_chain_height.load(Ordering::Acquire), Ordering::Release);
                                        // The next time release_pending_monitor_events is called, any events for this
                                        // ChannelMonitor will be returned.
@@ -577,7 +647,7 @@ where C::Target: chain::Filter,
                let monitors = self.monitors.read().unwrap();
                for (_, monitor_holder) in &*monitors {
                        monitor_holder.monitor.rebroadcast_pending_claims(
-                               &*self.broadcaster, &*self.fee_estimator, &*self.logger
+                               &*self.broadcaster, &*self.fee_estimator, &self.logger
                        )
                }
        }
@@ -592,20 +662,20 @@ where
        L::Target: Logger,
        P::Target: Persist<ChannelSigner>,
 {
-       fn filtered_block_connected(&self, header: &BlockHeader, txdata: &TransactionData, height: u32) {
+       fn filtered_block_connected(&self, header: &Header, txdata: &TransactionData, height: u32) {
                log_debug!(self.logger, "New best block {} at height {} provided via block_connected", header.block_hash(), height);
                self.process_chain_data(header, Some(height), &txdata, |monitor, txdata| {
                        monitor.block_connected(
-                               header, txdata, height, &*self.broadcaster, &*self.fee_estimator, &*self.logger)
+                               header, txdata, height, &*self.broadcaster, &*self.fee_estimator, &self.logger)
                });
        }
 
-       fn block_disconnected(&self, header: &BlockHeader, height: u32) {
+       fn block_disconnected(&self, header: &Header, height: u32) {
                let monitor_states = self.monitors.read().unwrap();
                log_debug!(self.logger, "Latest block {} at height {} removed via block_disconnected", header.block_hash(), height);
                for monitor_state in monitor_states.values() {
                        monitor_state.monitor.block_disconnected(
-                               header, height, &*self.broadcaster, &*self.fee_estimator, &*self.logger);
+                               header, height, &*self.broadcaster, &*self.fee_estimator, &self.logger);
                }
        }
 }
@@ -619,11 +689,11 @@ where
        L::Target: Logger,
        P::Target: Persist<ChannelSigner>,
 {
-       fn transactions_confirmed(&self, header: &BlockHeader, txdata: &TransactionData, height: u32) {
+       fn transactions_confirmed(&self, header: &Header, txdata: &TransactionData, height: u32) {
                log_debug!(self.logger, "{} provided transactions confirmed at height {} in block {}", txdata.len(), height, header.block_hash());
                self.process_chain_data(header, None, txdata, |monitor, txdata| {
                        monitor.transactions_confirmed(
-                               header, txdata, height, &*self.broadcaster, &*self.fee_estimator, &*self.logger)
+                               header, txdata, height, &*self.broadcaster, &*self.fee_estimator, &self.logger)
                });
        }
 
@@ -631,30 +701,31 @@ where
                log_debug!(self.logger, "Transaction {} reorganized out of chain", txid);
                let monitor_states = self.monitors.read().unwrap();
                for monitor_state in monitor_states.values() {
-                       monitor_state.monitor.transaction_unconfirmed(txid, &*self.broadcaster, &*self.fee_estimator, &*self.logger);
+                       monitor_state.monitor.transaction_unconfirmed(txid, &*self.broadcaster, &*self.fee_estimator, &self.logger);
                }
        }
 
-       fn best_block_updated(&self, header: &BlockHeader, height: u32) {
+       fn best_block_updated(&self, header: &Header, height: u32) {
                log_debug!(self.logger, "New best block {} at height {} provided via best_block_updated", header.block_hash(), height);
                self.process_chain_data(header, Some(height), &[], |monitor, txdata| {
                        // While in practice there shouldn't be any recursive calls when given empty txdata,
                        // it's still possible if a chain::Filter implementation returns a transaction.
                        debug_assert!(txdata.is_empty());
                        monitor.best_block_updated(
-                               header, height, &*self.broadcaster, &*self.fee_estimator, &*self.logger)
+                               header, height, &*self.broadcaster, &*self.fee_estimator, &self.logger
+                       )
                });
        }
 
-       fn get_relevant_txids(&self) -> Vec<(Txid, Option<BlockHash>)> {
+       fn get_relevant_txids(&self) -> Vec<(Txid, u32, Option<BlockHash>)> {
                let mut txids = Vec::new();
                let monitor_states = self.monitors.read().unwrap();
                for monitor_state in monitor_states.values() {
                        txids.append(&mut monitor_state.monitor.get_relevant_txids());
                }
 
-               txids.sort_unstable();
-               txids.dedup();
+               txids.sort_unstable_by(|a, b| a.0.cmp(&b.0).then(b.1.cmp(&a.1)));
+               txids.dedup_by_key(|(txid, _, _)| *txid);
                txids
        }
 }
@@ -667,96 +738,109 @@ where C::Target: chain::Filter,
            L::Target: Logger,
            P::Target: Persist<ChannelSigner>,
 {
-       /// Adds the monitor that watches the channel referred to by the given outpoint.
-       ///
-       /// Calls back to [`chain::Filter`] with the funding transaction and outputs to watch.
-       ///
-       /// Note that we persist the given `ChannelMonitor` while holding the `ChainMonitor`
-       /// monitors lock.
-       fn watch_channel(&self, funding_outpoint: OutPoint, monitor: ChannelMonitor<ChannelSigner>) -> ChannelMonitorUpdateStatus {
+       fn watch_channel(&self, funding_outpoint: OutPoint, monitor: ChannelMonitor<ChannelSigner>) -> Result<ChannelMonitorUpdateStatus, ()> {
+               let logger = WithChannelMonitor::from(&self.logger, &monitor);
                let mut monitors = self.monitors.write().unwrap();
                let entry = match monitors.entry(funding_outpoint) {
                        hash_map::Entry::Occupied(_) => {
-                               log_error!(self.logger, "Failed to add new channel data: channel monitor for given outpoint is already present");
-                               return ChannelMonitorUpdateStatus::PermanentFailure
+                               log_error!(logger, "Failed to add new channel data: channel monitor for given outpoint is already present");
+                               return Err(());
                        },
                        hash_map::Entry::Vacant(e) => e,
                };
-               log_trace!(self.logger, "Got new ChannelMonitor for channel {}", log_funding_info!(monitor));
+               log_trace!(logger, "Got new ChannelMonitor for channel {}", log_funding_info!(monitor));
                let update_id = MonitorUpdateId::from_new_monitor(&monitor);
                let mut pending_monitor_updates = Vec::new();
                let persist_res = self.persister.persist_new_channel(funding_outpoint, &monitor, update_id);
                match persist_res {
                        ChannelMonitorUpdateStatus::InProgress => {
-                               log_info!(self.logger, "Persistence of new ChannelMonitor for channel {} in progress", log_funding_info!(monitor));
+                               log_info!(logger, "Persistence of new ChannelMonitor for channel {} in progress", log_funding_info!(monitor));
                                pending_monitor_updates.push(update_id);
                        },
-                       ChannelMonitorUpdateStatus::PermanentFailure => {
-                               log_error!(self.logger, "Persistence of new ChannelMonitor for channel {} failed", log_funding_info!(monitor));
-                               return persist_res;
-                       },
                        ChannelMonitorUpdateStatus::Completed => {
-                               log_info!(self.logger, "Persistence of new ChannelMonitor for channel {} completed", log_funding_info!(monitor));
-                       }
+                               log_info!(logger, "Persistence of new ChannelMonitor for channel {} completed", log_funding_info!(monitor));
+                       },
+                       ChannelMonitorUpdateStatus::UnrecoverableError => {
+                               let err_str = "ChannelMonitor[Update] persistence failed unrecoverably. This indicates we cannot continue normal operation and must shut down.";
+                               log_error!(logger, "{}", err_str);
+                               panic!("{}", err_str);
+                       },
                }
                if let Some(ref chain_source) = self.chain_source {
-                       monitor.load_outputs_to_watch(chain_source);
+                       monitor.load_outputs_to_watch(chain_source , &self.logger);
                }
                entry.insert(MonitorHolder {
                        monitor,
                        pending_monitor_updates: Mutex::new(pending_monitor_updates),
-                       channel_perm_failed: AtomicBool::new(false),
                        last_chain_persist_height: AtomicUsize::new(self.highest_chain_height.load(Ordering::Acquire)),
                });
-               persist_res
+               Ok(persist_res)
        }
 
-       /// Note that we persist the given `ChannelMonitor` update while holding the
-       /// `ChainMonitor` monitors lock.
        fn update_channel(&self, funding_txo: OutPoint, update: &ChannelMonitorUpdate) -> ChannelMonitorUpdateStatus {
                // Update the monitor that watches the channel referred to by the given outpoint.
                let monitors = self.monitors.read().unwrap();
                match monitors.get(&funding_txo) {
                        None => {
-                               log_error!(self.logger, "Failed to update channel monitor: no such monitor registered");
+                               let logger = WithContext::from(&self.logger, update.counterparty_node_id, Some(funding_txo.to_channel_id()));
+                               log_error!(logger, "Failed to update channel monitor: no such monitor registered");
 
                                // We should never ever trigger this from within ChannelManager. Technically a
                                // user could use this object with some proxying in between which makes this
                                // possible, but in tests and fuzzing, this should be a panic.
-                               #[cfg(any(test, fuzzing))]
+                               #[cfg(debug_assertions)]
                                panic!("ChannelManager generated a channel update for a channel that was not yet registered!");
-                               #[cfg(not(any(test, fuzzing)))]
-                               ChannelMonitorUpdateStatus::PermanentFailure
+                               #[cfg(not(debug_assertions))]
+                               ChannelMonitorUpdateStatus::InProgress
                        },
                        Some(monitor_state) => {
                                let monitor = &monitor_state.monitor;
-                               log_trace!(self.logger, "Updating ChannelMonitor for channel {}", log_funding_info!(monitor));
-                               let update_res = monitor.update_monitor(update, &self.broadcaster, &*self.fee_estimator, &self.logger);
-                               if update_res.is_err() {
-                                       log_error!(self.logger, "Failed to update ChannelMonitor for channel {}.", log_funding_info!(monitor));
-                               }
-                               // Even if updating the monitor returns an error, the monitor's state will
-                               // still be changed. So, persist the updated monitor despite the error.
+                               let logger = WithChannelMonitor::from(&self.logger, &monitor);
+                               log_trace!(logger, "Updating ChannelMonitor to id {} for channel {}", update.update_id, log_funding_info!(monitor));
+                               let update_res = monitor.update_monitor(update, &self.broadcaster, &self.fee_estimator, &self.logger);
+
                                let update_id = MonitorUpdateId::from_monitor_update(update);
                                let mut pending_monitor_updates = monitor_state.pending_monitor_updates.lock().unwrap();
-                               let persist_res = self.persister.update_persisted_channel(funding_txo, Some(update), monitor, update_id);
+                               let persist_res = if update_res.is_err() {
+                                       // Even if updating the monitor returns an error, the monitor's state will
+                                       // still be changed. Therefore, we should persist the updated monitor despite the error.
+                                       // We don't want to persist a `monitor_update` which results in a failure to apply later
+                                       // while reading `channel_monitor` with updates from storage. Instead, we should persist
+                                       // the entire `channel_monitor` here.
+                                       log_warn!(logger, "Failed to update ChannelMonitor for channel {}. Going ahead and persisting the entire ChannelMonitor", log_funding_info!(monitor));
+                                       self.persister.update_persisted_channel(funding_txo, None, monitor, update_id)
+                               } else {
+                                       self.persister.update_persisted_channel(funding_txo, Some(update), monitor, update_id)
+                               };
                                match persist_res {
                                        ChannelMonitorUpdateStatus::InProgress => {
                                                pending_monitor_updates.push(update_id);
-                                               log_debug!(self.logger, "Persistence of ChannelMonitorUpdate for channel {} in progress", log_funding_info!(monitor));
-                                       },
-                                       ChannelMonitorUpdateStatus::PermanentFailure => {
-                                               monitor_state.channel_perm_failed.store(true, Ordering::Release);
-                                               log_error!(self.logger, "Persistence of ChannelMonitorUpdate for channel {} failed", log_funding_info!(monitor));
+                                               log_debug!(logger,
+                                                       "Persistence of ChannelMonitorUpdate id {:?} for channel {} in progress",
+                                                       update_id,
+                                                       log_funding_info!(monitor)
+                                               );
                                        },
                                        ChannelMonitorUpdateStatus::Completed => {
-                                               log_debug!(self.logger, "Persistence of ChannelMonitorUpdate for channel {} completed", log_funding_info!(monitor));
+                                               log_debug!(logger,
+                                                       "Persistence of ChannelMonitorUpdate id {:?} for channel {} completed",
+                                                       update_id,
+                                                       log_funding_info!(monitor)
+                                               );
+                                       },
+                                       ChannelMonitorUpdateStatus::UnrecoverableError => {
+                                               // Take the monitors lock for writing so that we poison it and any future
+                                               // operations going forward fail immediately.
+                                               core::mem::drop(pending_monitor_updates);
+                                               core::mem::drop(monitors);
+                                               let _poison = self.monitors.write().unwrap();
+                                               let err_str = "ChannelMonitor[Update] persistence failed unrecoverably. This indicates we cannot continue normal operation and must shut down.";
+                                               log_error!(logger, "{}", err_str);
+                                               panic!("{}", err_str);
                                        },
                                }
                                if update_res.is_err() {
-                                       ChannelMonitorUpdateStatus::PermanentFailure
-                               } else if monitor_state.channel_perm_failed.load(Ordering::Acquire) {
-                                       ChannelMonitorUpdateStatus::PermanentFailure
+                                       ChannelMonitorUpdateStatus::InProgress
                                } else {
                                        persist_res
                                }
@@ -767,28 +851,13 @@ where C::Target: chain::Filter,
        fn release_pending_monitor_events(&self) -> Vec<(OutPoint, Vec<MonitorEvent>, Option<PublicKey>)> {
                let mut pending_monitor_events = self.pending_monitor_events.lock().unwrap().split_off(0);
                for monitor_state in self.monitors.read().unwrap().values() {
+                       let logger = WithChannelMonitor::from(&self.logger, &monitor_state.monitor);
                        let is_pending_monitor_update = monitor_state.has_pending_chainsync_updates(&monitor_state.pending_monitor_updates.lock().unwrap());
-                       if is_pending_monitor_update &&
-                                       monitor_state.last_chain_persist_height.load(Ordering::Acquire) + LATENCY_GRACE_PERIOD_BLOCKS as usize
-                                               > self.highest_chain_height.load(Ordering::Acquire)
-                       {
-                               log_debug!(self.logger, "A Channel Monitor sync is still in progress, refusing to provide monitor events!");
-                       } else {
-                               if monitor_state.channel_perm_failed.load(Ordering::Acquire) {
-                                       // If a `UpdateOrigin::ChainSync` persistence failed with `PermanantFailure`,
-                                       // we don't really know if the latest `ChannelMonitor` state is on disk or not.
-                                       // We're supposed to hold monitor updates until the latest state is on disk to
-                                       // avoid duplicate events, but the user told us persistence is screw-y and may
-                                       // not complete. We can't hold events forever because we may learn some payment
-                                       // preimage, so instead we just log and hope the user complied with the
-                                       // `PermanentFailure` requirements of having at least the local-disk copy
-                                       // updated.
-                                       log_info!(self.logger, "A Channel Monitor sync returned PermanentFailure. Returning monitor events but duplicate events may appear after reload!");
-                               }
+                       if !is_pending_monitor_update || monitor_state.last_chain_persist_height.load(Ordering::Acquire) + LATENCY_GRACE_PERIOD_BLOCKS as usize <= self.highest_chain_height.load(Ordering::Acquire) {
                                if is_pending_monitor_update {
-                                       log_error!(self.logger, "A ChannelMonitor sync took longer than {} blocks to complete.", LATENCY_GRACE_PERIOD_BLOCKS);
-                                       log_error!(self.logger, "   To avoid funds-loss, we are allowing monitor updates to be released.");
-                                       log_error!(self.logger, "   This may cause duplicate payment events to be generated.");
+                                       log_error!(logger, "A ChannelMonitor sync took longer than {} blocks to complete.", LATENCY_GRACE_PERIOD_BLOCKS);
+                                       log_error!(logger, "   To avoid funds-loss, we are allowing monitor updates to be released.");
+                                       log_error!(logger, "   This may cause duplicate payment events to be generated.");
                                }
                                let monitor_events = monitor_state.monitor.get_and_clear_pending_monitor_events();
                                if monitor_events.len() > 0 {
@@ -831,12 +900,12 @@ impl<ChannelSigner: WriteableEcdsaChannelSigner, C: Deref, T: Deref, F: Deref, L
 
 #[cfg(test)]
 mod tests {
-       use crate::{check_added_monitors, check_closed_broadcast, check_closed_event};
+       use crate::check_added_monitors;
        use crate::{expect_payment_claimed, expect_payment_path_successful, get_event_msg};
        use crate::{get_htlc_update_msgs, get_local_commitment_txn, get_revoke_commit_msgs, get_route_and_payment_hash, unwrap_send_err};
        use crate::chain::{ChannelMonitorUpdateStatus, Confirm, Watch};
        use crate::chain::channelmonitor::LATENCY_GRACE_PERIOD_BLOCKS;
-       use crate::events::{Event, ClosureReason, MessageSendEvent, MessageSendEventsProvider};
+       use crate::events::{Event, MessageSendEvent, MessageSendEventsProvider};
        use crate::ln::channelmanager::{PaymentSendFailure, PaymentId, RecipientOnionFields};
        use crate::ln::functional_test_utils::*;
        use crate::ln::msgs::ChannelMessageHandler;
@@ -988,12 +1057,8 @@ mod tests {
                chanmon_cfgs[0].persister.set_update_ret(ChannelMonitorUpdateStatus::Completed);
                unwrap_send_err!(nodes[0].node.send_payment_with_route(&route, second_payment_hash,
                                RecipientOnionFields::secret_only(second_payment_secret), PaymentId(second_payment_hash.0)
-                       ), true, APIError::ChannelUnavailable { ref err },
-                       assert!(err.contains("ChannelMonitor storage failure")));
-               check_added_monitors!(nodes[0], 2); // After the failure we generate a close-channel monitor update
-               check_closed_broadcast!(nodes[0], true);
-               check_closed_event!(nodes[0], 1, ClosureReason::ProcessingError { err: "ChannelMonitor storage failure".to_string() },
-                       [nodes[1].node.get_our_node_id()], 100000);
+                       ), false, APIError::MonitorUpdateInProgress, {});
+               check_added_monitors!(nodes[0], 1);
 
                // However, as the ChainMonitor is still waiting for the original persistence to complete,
                // it won't yet release the MonitorEvents.
@@ -1022,7 +1087,8 @@ mod tests {
        }
 
        #[test]
-       fn update_during_chainsync_fails_channel() {
+       #[cfg(feature = "std")]
+       fn update_during_chainsync_poisons_channel() {
                let chanmon_cfgs = create_chanmon_cfgs(2);
                let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
                let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None]);
@@ -1030,18 +1096,15 @@ mod tests {
                create_announced_chan_between_nodes(&nodes, 0, 1);
 
                chanmon_cfgs[0].persister.chain_sync_monitor_persistences.lock().unwrap().clear();
-               chanmon_cfgs[0].persister.set_update_ret(ChannelMonitorUpdateStatus::PermanentFailure);
-
-               connect_blocks(&nodes[0], 1);
-               // Before processing events, the ChannelManager will still think the Channel is open and
-               // there won't be any ChannelMonitorUpdates
-               assert_eq!(nodes[0].node.list_channels().len(), 1);
-               check_added_monitors!(nodes[0], 0);
-               // ... however once we get events once, the channel will close, creating a channel-closed
-               // ChannelMonitorUpdate.
-               check_closed_broadcast!(nodes[0], true);
-               check_closed_event!(nodes[0], 1, ClosureReason::ProcessingError { err: "Failed to persist ChannelMonitor update during chain sync".to_string() },
-                       [nodes[1].node.get_our_node_id()], 100000);
-               check_added_monitors!(nodes[0], 1);
+               chanmon_cfgs[0].persister.set_update_ret(ChannelMonitorUpdateStatus::UnrecoverableError);
+
+               assert!(std::panic::catch_unwind(|| {
+                       // Returning an UnrecoverableError should always panic immediately
+                       connect_blocks(&nodes[0], 1);
+               }).is_err());
+               assert!(std::panic::catch_unwind(|| {
+                       // ...and also poison our locks causing later use to panic as well
+                       core::mem::drop(nodes);
+               }).is_err());
        }
 }