Rename ChannelMonitor::write_for_disk --> serialize_for_disk
[rust-lightning] / lightning / src / ln / functional_tests.rs
index 0a058152e1a8e415837f451a583a3743d42b9207..a2e12504031780718736fd9086f57a656da826b3 100644 (file)
@@ -1,15 +1,23 @@
+// This file is Copyright its original authors, visible in version control
+// history.
+//
+// This file is licensed under the Apache License, Version 2.0 <LICENSE-APACHE
+// or http://www.apache.org/licenses/LICENSE-2.0> or the MIT license
+// <LICENSE-MIT or http://opensource.org/licenses/MIT>, at your option.
+// You may not use this file except in accordance with one or both of these
+// licenses.
+
 //! Tests that test standing up a network of ChannelManagers, creating channels, sending
 //! payments/messages between them, and often checking the resulting ChannelMonitors are able to
 //! claim outputs on-chain.
 
+use chain::Watch;
+use chain::channelmonitor;
+use chain::channelmonitor::{ChannelMonitor, CLTV_CLAIM_BUFFER, LATENCY_GRACE_PERIOD_BLOCKS, ANTI_REORG_DELAY};
 use chain::transaction::OutPoint;
 use chain::keysinterface::{ChannelKeys, KeysInterface, SpendableOutputDescriptor};
-use chain::chaininterface;
-use chain::chaininterface::{ChainListener, ChainWatchInterfaceUtil, BlockNotifier};
 use ln::channel::{COMMITMENT_TX_BASE_WEIGHT, COMMITMENT_TX_WEIGHT_PER_HTLC};
-use ln::channelmanager::{ChannelManager,ChannelManagerReadArgs,HTLCForwardInfo,RAACommitmentOrder, PaymentPreimage, PaymentHash, PaymentSecret, PaymentSendFailure, BREAKDOWN_TIMEOUT};
-use ln::channelmonitor::{ChannelMonitor, CLTV_CLAIM_BUFFER, LATENCY_GRACE_PERIOD_BLOCKS, ManyChannelMonitor, ANTI_REORG_DELAY};
-use ln::channelmonitor;
+use ln::channelmanager::{ChannelManager, ChannelManagerReadArgs, RAACommitmentOrder, PaymentPreimage, PaymentHash, PaymentSecret, PaymentSendFailure, BREAKDOWN_TIMEOUT};
 use ln::channel::{Channel, ChannelError};
 use ln::{chan_utils, onion_utils};
 use routing::router::{Route, RouteHop, get_route};
@@ -20,12 +28,12 @@ use util::enforcing_trait_impls::EnforcingChannelKeys;
 use util::{byte_utils, test_utils};
 use util::events::{Event, EventsProvider, MessageSendEvent, MessageSendEventsProvider};
 use util::errors::APIError;
-use util::ser::{Writeable, Writer, ReadableArgs, Readable};
+use util::ser::{Writeable, ReadableArgs, Readable};
 use util::config::UserConfig;
 
-use bitcoin::util::hash::BitcoinHash;
 use bitcoin::hashes::sha256d::Hash as Sha256dHash;
-use bitcoin::hash_types::{Txid, BlockHash};
+use bitcoin::hashes::HashEngine;
+use bitcoin::hash_types::{Txid, BlockHash, WPubkeyHash};
 use bitcoin::util::bip143;
 use bitcoin::util::address::Address;
 use bitcoin::util::bip32::{ChildNumber, ExtendedPubKey, ExtendedPrivKey};
@@ -42,13 +50,16 @@ use bitcoin::hashes::Hash;
 use bitcoin::secp256k1::{Secp256k1, Message};
 use bitcoin::secp256k1::key::{PublicKey,SecretKey};
 
+use regex;
+
 use std::collections::{BTreeSet, HashMap, HashSet};
 use std::default::Default;
 use std::sync::{Arc, Mutex};
 use std::sync::atomic::Ordering;
-use std::{mem, io};
+use std::mem;
 
 use ln::functional_test_utils::*;
+use ln::chan_utils::PreCalculatedTxCreationKeys;
 
 #[test]
 fn test_insane_channel_opens() {
@@ -61,7 +72,7 @@ fn test_insane_channel_opens() {
        // Instantiate channel parameters where we push the maximum msats given our
        // funding satoshis
        let channel_value_sat = 31337; // same as funding satoshis
-       let channel_reserve_satoshis = Channel::<EnforcingChannelKeys>::get_remote_channel_reserve_satoshis(channel_value_sat);
+       let channel_reserve_satoshis = Channel::<EnforcingChannelKeys>::get_holder_selected_channel_reserve_satoshis(channel_value_sat);
        let push_msat = (channel_value_sat - channel_reserve_satoshis) * 1000;
 
        // Have node0 initiate a channel to node1 with aforementioned parameters
@@ -76,10 +87,11 @@ fn test_insane_channel_opens() {
                nodes[1].node.handle_open_channel(&nodes[0].node.get_our_node_id(), InitFeatures::known(), &message_mutator(open_channel_message.clone()));
                let msg_events = nodes[1].node.get_and_clear_pending_msg_events();
                assert_eq!(msg_events.len(), 1);
+               let expected_regex = regex::Regex::new(expected_error_str).unwrap();
                if let MessageSendEvent::HandleError { ref action, .. } = msg_events[0] {
                        match action {
                                &ErrorAction::SendErrorMessage { .. } => {
-                                       nodes[1].logger.assert_log("lightning::ln::channelmanager".to_string(), expected_error_str.to_string(), 1);
+                                       nodes[1].logger.assert_log_regex("lightning::ln::channelmanager".to_string(), expected_regex, 1);
                                },
                                _ => panic!("unexpected event!"),
                        }
@@ -90,23 +102,23 @@ fn test_insane_channel_opens() {
        use ln::channelmanager::MAX_LOCAL_BREAKDOWN_TIMEOUT;
 
        // Test all mutations that would make the channel open message insane
-       insane_open_helper("funding value > 2^24", |mut msg| { msg.funding_satoshis = MAX_FUNDING_SATOSHIS; msg });
+       insane_open_helper(format!("Funding must be smaller than {}. It was {}", MAX_FUNDING_SATOSHIS, MAX_FUNDING_SATOSHIS).as_str(), |mut msg| { msg.funding_satoshis = MAX_FUNDING_SATOSHIS; msg });
 
        insane_open_helper("Bogus channel_reserve_satoshis", |mut msg| { msg.channel_reserve_satoshis = msg.funding_satoshis + 1; msg });
 
-       insane_open_helper("push_msat larger than funding value", |mut msg| { msg.push_msat = (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000 + 1; msg });
+       insane_open_helper(r"push_msat \d+ was larger than funding value \d+", |mut msg| { msg.push_msat = (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000 + 1; msg });
 
        insane_open_helper("Peer never wants payout outputs?", |mut msg| { msg.dust_limit_satoshis = msg.funding_satoshis + 1 ; msg });
 
-       insane_open_helper("Bogus; channel reserve is less than dust limit", |mut msg| { msg.dust_limit_satoshis = msg.channel_reserve_satoshis + 1; msg });
+       insane_open_helper(r"Bogus; channel reserve \(\d+\) is less than dust limit \(\d+\)", |mut msg| { msg.dust_limit_satoshis = msg.channel_reserve_satoshis + 1; msg });
 
-       insane_open_helper("Minimum htlc value is full channel value", |mut msg| { msg.htlc_minimum_msat = (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000; msg });
+       insane_open_helper(r"Minimum htlc value \(\d+\) was larger than full channel value \(\d+\)", |mut msg| { msg.htlc_minimum_msat = (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000; msg });
 
        insane_open_helper("They wanted our payments to be delayed by a needlessly long period", |mut msg| { msg.to_self_delay = MAX_LOCAL_BREAKDOWN_TIMEOUT + 1; msg });
 
-       insane_open_helper("0 max_accpted_htlcs makes for a useless channel", |mut msg| { msg.max_accepted_htlcs = 0; msg });
+       insane_open_helper("0 max_accepted_htlcs makes for a useless channel", |mut msg| { msg.max_accepted_htlcs = 0; msg });
 
-       insane_open_helper("max_accpted_htlcs > 483", |mut msg| { msg.max_accepted_htlcs = 484; msg });
+       insane_open_helper("max_accepted_htlcs was 484. It must not be larger than 483", |mut msg| { msg.max_accepted_htlcs = 484; msg });
 }
 
 #[test]
@@ -404,14 +416,14 @@ fn test_1_conf_open() {
        let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
        let tx = create_chan_between_nodes_with_value_init(&nodes[0], &nodes[1], 100000, 10001, InitFeatures::known(), InitFeatures::known());
-       assert!(nodes[0].chain_monitor.does_match_tx(&tx));
-       assert!(nodes[1].chain_monitor.does_match_tx(&tx));
-
-       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected_checked(&header, 1, &[&tx; 1], &[tx.version; 1]);
+       let block = Block {
+               header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+               txdata: vec![tx],
+       };
+       connect_block(&nodes[1], &block, 1);
        nodes[0].node.handle_funding_locked(&nodes[1].node.get_our_node_id(), &get_event_msg!(nodes[1], MessageSendEvent::SendFundingLocked, nodes[0].node.get_our_node_id()));
 
-       nodes[0].block_notifier.block_connected_checked(&header, 1, &[&tx; 1], &[tx.version; 1]);
+       connect_block(&nodes[0], &block, 1);
        let (funding_locked, _) = create_chan_between_nodes_with_value_confirm_second(&nodes[1], &nodes[0]);
        let (announcement, as_update, bs_update) = create_chan_between_nodes_with_value_b(&nodes[0], &nodes[1], &funding_locked);
 
@@ -434,9 +446,12 @@ fn do_test_sanity_on_in_flight_opens(steps: u8) {
        let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
        if steps & 0b1000_0000 != 0{
-               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[0].block_notifier.block_connected_checked(&header, 1, &Vec::new(), &[0; 0]);
-               nodes[1].block_notifier.block_connected_checked(&header, 1, &Vec::new(), &[0; 0]);
+               let block = Block {
+                       header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+                       txdata: vec![],
+               };
+               connect_block(&nodes[0], &block, 1);
+               connect_block(&nodes[1], &block, 1);
        }
 
        if steps & 0x0f == 0 { return; }
@@ -460,7 +475,7 @@ fn do_test_sanity_on_in_flight_opens(steps: u8) {
        if steps & 0x0f == 4 { return; }
        nodes[1].node.handle_funding_created(&nodes[0].node.get_our_node_id(), &funding_created);
        {
-               let mut added_monitors = nodes[1].chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = nodes[1].chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 1);
                assert_eq!(added_monitors[0].0, funding_output);
                added_monitors.clear();
@@ -470,7 +485,7 @@ fn do_test_sanity_on_in_flight_opens(steps: u8) {
        if steps & 0x0f == 5 { return; }
        nodes[0].node.handle_funding_signed(&nodes[1].node.get_our_node_id(), &funding_signed);
        {
-               let mut added_monitors = nodes[0].chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = nodes[0].chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 1);
                assert_eq!(added_monitors[0].0, funding_output);
                added_monitors.clear();
@@ -490,7 +505,7 @@ fn do_test_sanity_on_in_flight_opens(steps: u8) {
        create_chan_between_nodes_with_value_confirm_first(&nodes[0], &nodes[1], &tx);
 
        if steps & 0x0f == 7 { return; }
-       confirm_transaction(&nodes[0].block_notifier, &nodes[0].chain_monitor, &tx, tx.version);
+       confirm_transaction(&nodes[0], &tx);
        create_chan_between_nodes_with_value_confirm_second(&nodes[1], &nodes[0]);
 }
 
@@ -644,7 +659,7 @@ fn test_update_fee_with_fundee_update_add_htlc() {
        // nothing happens since node[1] is in AwaitingRemoteRevoke
        nodes[1].node.send_payment(&route, our_payment_hash, &None).unwrap();
        {
-               let mut added_monitors = nodes[0].chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = nodes[0].chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 0);
                added_monitors.clear();
        }
@@ -817,8 +832,8 @@ fn pre_funding_lock_shutdown_test() {
        let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
        let tx = create_chan_between_nodes_with_value_init(&nodes[0], &nodes[1], 8000000, 0, InitFeatures::known(), InitFeatures::known());
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![tx.clone()]}, 1);
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![tx.clone()]}, 1);
+       connect_block(&nodes[0], &Block { header, txdata: vec![tx.clone()]}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![tx.clone()]}, 1);
 
        nodes[0].node.close_channel(&OutPoint { txid: tx.txid(), index: 0 }.to_channel_id()).unwrap();
        let node_0_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
@@ -1269,7 +1284,7 @@ fn fake_network_test() {
        route_over_limit(&nodes[0], &vec!(&nodes[1], &nodes[3])[..], 3000000);
        let events = nodes[0].node.get_and_clear_pending_msg_events();
        assert_eq!(events.len(), 0);
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us over the max HTLC value in flight our peer will accept".to_string(), 1);
+       nodes[0].logger.assert_log_regex("lightning::ln::channelmanager".to_string(), regex::Regex::new(r"Cannot send value that would put us over the max HTLC value in flight our peer will accept \(\d+\)").unwrap(), 1);
 
        //TODO: Test that routes work again here as we've been notified that the channel is full
 
@@ -1320,10 +1335,10 @@ fn holding_cell_htlc_counting() {
        {
                let net_graph_msg_handler = &nodes[1].net_graph_msg_handler;
                let route = get_route(&nodes[1].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[2].node.get_our_node_id(), None, &Vec::new(), 100000, TEST_FINAL_CLTV, &logger).unwrap();
-               unwrap_send_err!(nodes[1].node.send_payment(&route, payment_hash_1, &None), true, APIError::ChannelUnavailable { err },
-                       assert_eq!(err, "Cannot push more than their max accepted HTLCs"));
+               unwrap_send_err!(nodes[1].node.send_payment(&route, payment_hash_1, &None), true, APIError::ChannelUnavailable { ref err },
+                       assert!(regex::Regex::new(r"Cannot push more than their max accepted HTLCs \(\d+\)").unwrap().is_match(err)));
                assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
-               nodes[1].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot push more than their max accepted HTLCs".to_string(), 1);
+               nodes[1].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot push more than their max accepted HTLCs".to_string(), 1);
        }
 
        // This should also be true if we try to forward a payment.
@@ -1485,7 +1500,7 @@ fn test_duplicate_htlc_different_direction_onchain() {
        assert_eq!(has_both_htlcs, 2);
 
        let header = BlockHeader { version: 0x2000_0000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![remote_txn[0].clone()] }, 1);
+       connect_block(&nodes[0], &Block { header, txdata: vec![remote_txn[0].clone()] }, 1);
        check_added_monitors!(nodes[0], 1);
 
        // Check we only broadcast 1 timeout tx
@@ -1539,20 +1554,193 @@ fn test_basic_channel_reserve() {
        let err = nodes[0].node.send_payment(&route, our_payment_hash, &None).err().unwrap();
        match err {
                PaymentSendFailure::AllFailedRetrySafe(ref fails) => {
-                       match fails[0] {
-                               APIError::ChannelUnavailable{err} =>
-                                       assert_eq!(err, "Cannot send value that would put us under local channel reserve value"),
+                       match &fails[0] {
+                               &APIError::ChannelUnavailable{ref err} =>
+                                       assert!(regex::Regex::new(r"Cannot send value that would put our balance under counterparty-announced channel reserve value \(\d+\)").unwrap().is_match(err)),
                                _ => panic!("Unexpected error variant"),
                        }
                },
                _ => panic!("Unexpected error variant"),
        }
        assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us under local channel reserve value".to_string(), 1);
+       nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send value that would put our balance under counterparty-announced channel reserve value".to_string(), 1);
 
        send_payment(&nodes[0], &vec![&nodes[1]], max_can_send, max_can_send);
 }
 
+#[test]
+fn test_fee_spike_violation_fails_htlc() {
+       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]);
+       let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+       let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let logger = test_utils::TestLogger::new();
+
+       macro_rules! get_route_and_payment_hash {
+               ($recv_value: expr) => {{
+                       let (payment_preimage, payment_hash) = get_payment_preimage_hash!(nodes[1]);
+                       let net_graph_msg_handler = &nodes[0].net_graph_msg_handler.network_graph.read().unwrap();
+                       let route = get_route(&nodes[0].node.get_our_node_id(), net_graph_msg_handler, &nodes.last().unwrap().node.get_our_node_id(), None, &Vec::new(), $recv_value, TEST_FINAL_CLTV, &logger).unwrap();
+                       (route, payment_hash, payment_preimage)
+               }}
+       };
+
+       let (route, payment_hash, _) = get_route_and_payment_hash!(3460001);
+       // Need to manually create the update_add_htlc message to go around the channel reserve check in send_htlc()
+       let secp_ctx = Secp256k1::new();
+       let session_priv = SecretKey::from_slice(&[42; 32]).expect("RNG is bad!");
+
+       let cur_height = nodes[1].node.latest_block_height.load(Ordering::Acquire) as u32 + 1;
+
+       let onion_keys = onion_utils::construct_onion_keys(&secp_ctx, &route.paths[0], &session_priv).unwrap();
+       let (onion_payloads, htlc_msat, htlc_cltv) = onion_utils::build_onion_payloads(&route.paths[0], 3460001, &None, cur_height).unwrap();
+       let onion_packet = onion_utils::construct_onion_packet(onion_payloads, onion_keys, [0; 32], &payment_hash);
+       let msg = msgs::UpdateAddHTLC {
+               channel_id: chan.2,
+               htlc_id: 0,
+               amount_msat: htlc_msat,
+               payment_hash: payment_hash,
+               cltv_expiry: htlc_cltv,
+               onion_routing_packet: onion_packet,
+       };
+
+       nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &msg);
+
+       // Now manually create the commitment_signed message corresponding to the update_add
+       // nodes[0] just sent. In the code for construction of this message, "local" refers
+       // to the sender of the message, and "remote" refers to the receiver.
+
+       let feerate_per_kw = get_feerate!(nodes[0], chan.2);
+
+       const INITIAL_COMMITMENT_NUMBER: u64 = (1 << 48) - 1;
+
+       // Get the EnforcingChannelKeys for each channel, which will be used to (1) get the keys
+       // needed to sign the new commitment tx and (2) sign the new commitment tx.
+       let (local_revocation_basepoint, local_htlc_basepoint, local_payment_point, local_secret, local_secret2) = {
+               let chan_lock = nodes[0].node.channel_state.lock().unwrap();
+               let local_chan = chan_lock.by_id.get(&chan.2).unwrap();
+               let chan_keys = local_chan.get_keys();
+               let pubkeys = chan_keys.pubkeys();
+               (pubkeys.revocation_basepoint, pubkeys.htlc_basepoint, pubkeys.payment_point,
+                chan_keys.release_commitment_secret(INITIAL_COMMITMENT_NUMBER), chan_keys.release_commitment_secret(INITIAL_COMMITMENT_NUMBER - 2))
+       };
+       let (remote_delayed_payment_basepoint, remote_htlc_basepoint, remote_payment_point, remote_secret1) = {
+               let chan_lock = nodes[1].node.channel_state.lock().unwrap();
+               let remote_chan = chan_lock.by_id.get(&chan.2).unwrap();
+               let chan_keys = remote_chan.get_keys();
+               let pubkeys = chan_keys.pubkeys();
+               (pubkeys.delayed_payment_basepoint, pubkeys.htlc_basepoint, pubkeys.payment_point,
+                chan_keys.release_commitment_secret(INITIAL_COMMITMENT_NUMBER - 1))
+       };
+
+       // Assemble the set of keys we can use for signatures for our commitment_signed message.
+       let commitment_secret = SecretKey::from_slice(&remote_secret1).unwrap();
+       let per_commitment_point = PublicKey::from_secret_key(&secp_ctx, &commitment_secret);
+       let commit_tx_keys = chan_utils::TxCreationKeys::derive_new(&secp_ctx, &per_commitment_point, &remote_delayed_payment_basepoint,
+               &remote_htlc_basepoint, &local_revocation_basepoint, &local_htlc_basepoint).unwrap();
+
+       // Build the remote commitment transaction so we can sign it, and then later use the
+       // signature for the commitment_signed message.
+       let local_chan_balance = 1313;
+       let static_payment_pk = local_payment_point.serialize();
+       let remote_commit_tx_output = TxOut {
+                               script_pubkey: Builder::new().push_opcode(opcodes::all::OP_PUSHBYTES_0)
+                                                            .push_slice(&WPubkeyHash::hash(&static_payment_pk)[..])
+                                                            .into_script(),
+               value: local_chan_balance as u64
+       };
+
+       let local_commit_tx_output = TxOut {
+               script_pubkey: chan_utils::get_revokeable_redeemscript(&commit_tx_keys.revocation_key,
+                                                                              BREAKDOWN_TIMEOUT,
+                                                                              &commit_tx_keys.broadcaster_delayed_payment_key).to_v0_p2wsh(),
+                               value: 95000,
+       };
+
+       let accepted_htlc_info = chan_utils::HTLCOutputInCommitment {
+               offered: false,
+               amount_msat: 3460001,
+               cltv_expiry: htlc_cltv,
+               payment_hash: payment_hash,
+               transaction_output_index: Some(1),
+       };
+
+       let htlc_output = TxOut {
+               script_pubkey: chan_utils::get_htlc_redeemscript(&accepted_htlc_info, &commit_tx_keys).to_v0_p2wsh(),
+               value: 3460001 / 1000
+       };
+
+       let commit_tx_obscure_factor = {
+               let mut sha = Sha256::engine();
+               let remote_payment_point = &remote_payment_point.serialize();
+               sha.input(&local_payment_point.serialize());
+               sha.input(remote_payment_point);
+               let res = Sha256::from_engine(sha).into_inner();
+
+               ((res[26] as u64) << 5*8) |
+               ((res[27] as u64) << 4*8) |
+               ((res[28] as u64) << 3*8) |
+               ((res[29] as u64) << 2*8) |
+               ((res[30] as u64) << 1*8) |
+               ((res[31] as u64) << 0*8)
+       };
+       let commitment_number = 1;
+       let obscured_commitment_transaction_number = commit_tx_obscure_factor ^ commitment_number;
+       let lock_time = ((0x20 as u32) << 8*3) | ((obscured_commitment_transaction_number & 0xffffffu64) as u32);
+       let input = TxIn {
+               previous_output: BitcoinOutPoint { txid: chan.3.txid(), vout: 0 },
+               script_sig: Script::new(),
+               sequence: ((0x80 as u32) << 8*3) | ((obscured_commitment_transaction_number >> 3*8) as u32),
+               witness: Vec::new(),
+       };
+
+       let commit_tx = Transaction {
+               version: 2,
+               lock_time,
+               input: vec![input],
+               output: vec![remote_commit_tx_output, htlc_output, local_commit_tx_output],
+       };
+       let res = {
+               let local_chan_lock = nodes[0].node.channel_state.lock().unwrap();
+               let local_chan = local_chan_lock.by_id.get(&chan.2).unwrap();
+               let local_chan_keys = local_chan.get_keys();
+               let pre_commit_tx_keys = PreCalculatedTxCreationKeys::new(commit_tx_keys);
+               local_chan_keys.sign_counterparty_commitment(feerate_per_kw, &commit_tx, &pre_commit_tx_keys, &[&accepted_htlc_info], &secp_ctx).unwrap()
+       };
+
+       let commit_signed_msg = msgs::CommitmentSigned {
+               channel_id: chan.2,
+               signature: res.0,
+               htlc_signatures: res.1
+       };
+
+       // Send the commitment_signed message to the nodes[1].
+       nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), &commit_signed_msg);
+       let _ = nodes[1].node.get_and_clear_pending_msg_events();
+
+       // Send the RAA to nodes[1].
+       let per_commitment_secret = local_secret;
+       let next_secret = SecretKey::from_slice(&local_secret2).unwrap();
+       let next_per_commitment_point = PublicKey::from_secret_key(&secp_ctx, &next_secret);
+       let raa_msg = msgs::RevokeAndACK{ channel_id: chan.2, per_commitment_secret, next_per_commitment_point};
+       nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(), &raa_msg);
+
+       let events = nodes[1].node.get_and_clear_pending_msg_events();
+       assert_eq!(events.len(), 1);
+       // Make sure the HTLC failed in the way we expect.
+       match events[0] {
+               MessageSendEvent::UpdateHTLCs { updates: msgs::CommitmentUpdate { ref update_fail_htlcs, .. }, .. } => {
+                       assert_eq!(update_fail_htlcs.len(), 1);
+                       update_fail_htlcs[0].clone()
+               },
+               _ => panic!("Unexpected event"),
+       };
+       nodes[1].logger.assert_log("lightning::ln::channel".to_string(), "Attempting to fail HTLC due to fee spike buffer violation".to_string(), 1);
+
+       check_added_monitors!(nodes[1], 2);
+}
+
 #[test]
 fn test_chan_reserve_violation_outbound_htlc_inbound_chan() {
        let mut chanmon_cfgs = create_chanmon_cfgs(2);
@@ -1577,10 +1765,10 @@ fn test_chan_reserve_violation_outbound_htlc_inbound_chan() {
        };
 
        let (route, our_payment_hash, _) = get_route_and_payment_hash!(1000);
-       unwrap_send_err!(nodes[1].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-               assert_eq!(err, "Cannot send value that would put them under remote channel reserve value"));
+       unwrap_send_err!(nodes[1].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+               assert_eq!(err, "Cannot send value that would put counterparty balance under holder-announced channel reserve value"));
        assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
-       nodes[1].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put them under remote channel reserve value".to_string(), 1);
+       nodes[1].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put counterparty balance under holder-announced channel reserve value".to_string(), 1);
 }
 
 #[test]
@@ -1627,10 +1815,10 @@ fn test_chan_reserve_violation_inbound_htlc_outbound_channel() {
 
        nodes[0].node.handle_update_add_htlc(&nodes[1].node.get_our_node_id(), &msg);
        // Check that the payment failed and the channel is closed in response to the malicious UpdateAdd.
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot receive value that would put us under local channel reserve value".to_string(), 1);
+       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot accept HTLC that would put our balance under counterparty-announced channel reserve value".to_string(), 1);
        assert_eq!(nodes[0].node.list_channels().len(), 0);
        let err_msg = check_closed_broadcast!(nodes[0], true).unwrap();
-       assert_eq!(err_msg.data, "Cannot receive value that would put us under local channel reserve value");
+       assert_eq!(err_msg.data, "Cannot accept HTLC that would put our balance under counterparty-announced channel reserve value");
        check_added_monitors!(nodes[0], 1);
 }
 
@@ -1706,6 +1894,25 @@ fn test_chan_reserve_violation_inbound_htlc_inbound_chan() {
        check_added_monitors!(nodes[1], 1);
 }
 
+#[test]
+fn test_inbound_outbound_capacity_is_not_zero() {
+       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]);
+       let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+       let _ = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let channels0 = node_chanmgrs[0].list_channels();
+       let channels1 = node_chanmgrs[1].list_channels();
+       assert_eq!(channels0.len(), 1);
+       assert_eq!(channels1.len(), 1);
+
+       assert_eq!(channels0[0].inbound_capacity_msat, 95000000);
+       assert_eq!(channels1[0].outbound_capacity_msat, 95000000);
+
+       assert_eq!(channels0[0].outbound_capacity_msat, 100000 * 1000 - 95000000);
+       assert_eq!(channels1[0].inbound_capacity_msat, 100000 * 1000 - 95000000);
+}
+
 fn commit_tx_fee_msat(feerate: u32, num_htlcs: u64) -> u64 {
        (COMMITMENT_TX_BASE_WEIGHT + num_htlcs * COMMITMENT_TX_WEIGHT_PER_HTLC) * feerate as u64 / 1000 * 1000
 }
@@ -1749,16 +1956,16 @@ fn test_channel_reserve_holding_cell_htlcs() {
        let total_fee_msat = (nodes.len() - 2) as u64 * feemsat;
        let feerate = get_feerate!(nodes[0], chan_1.2);
 
-       let recv_value_0 = stat01.their_max_htlc_value_in_flight_msat - total_fee_msat;
+       let recv_value_0 = stat01.counterparty_max_htlc_value_in_flight_msat - total_fee_msat;
 
        // attempt to send amt_msat > their_max_htlc_value_in_flight_msat
        {
                let (route, our_payment_hash, _) = get_route_and_payment_hash!(recv_value_0 + 1);
                assert!(route.paths[0].iter().rev().skip(1).all(|h| h.fee_msat == feemsat));
-               unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-                       assert_eq!(err, "Cannot send value that would put us over the max HTLC value in flight our peer will accept"));
+               unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+                       assert!(regex::Regex::new(r"Cannot send value that would put us over the max HTLC value in flight our peer will accept \(\d+\)").unwrap().is_match(err)));
                assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-               nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us over the max HTLC value in flight our peer will accept".to_string(), 1);
+               nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us over the max HTLC value in flight our peer will accept".to_string(), 1);
        }
 
        // channel reserve is bigger than their_max_htlc_value_in_flight_msat so loop to deplete
@@ -1769,7 +1976,7 @@ fn test_channel_reserve_holding_cell_htlcs() {
                // Also, ensure that each payment has enough to be over the dust limit to
                // ensure it'll be included in each commit tx fee calculation.
                let commit_tx_fee_all_htlcs = 2*commit_tx_fee_msat(feerate, 3 + 1);
-               let ensure_htlc_amounts_above_dust_buffer = 3 * (stat01.their_dust_limit_msat + 1000);
+               let ensure_htlc_amounts_above_dust_buffer = 3 * (stat01.counterparty_dust_limit_msat + 1000);
                if stat01.value_to_self_msat < stat01.channel_reserve_msat + commit_tx_fee_all_htlcs + ensure_htlc_amounts_above_dust_buffer + amt_msat {
                        break;
                }
@@ -1819,8 +2026,8 @@ fn test_channel_reserve_holding_cell_htlcs() {
        let recv_value_2 = stat01.value_to_self_msat - amt_msat_1 - stat01.channel_reserve_msat - total_fee_msat - commit_tx_fee_2_htlcs;
        {
                let (route, our_payment_hash, _) = get_route_and_payment_hash!(recv_value_2 + 1);
-               unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-                       assert_eq!(err, "Cannot send value that would put us under local channel reserve value"));
+               unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+                       assert!(regex::Regex::new(r"Cannot send value that would put our balance under counterparty-announced channel reserve value \(\d+\)").unwrap().is_match(err)));
                assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
        }
 
@@ -1845,10 +2052,10 @@ fn test_channel_reserve_holding_cell_htlcs() {
        // test with outbound holding cell amount > 0
        {
                let (route, our_payment_hash, _) = get_route_and_payment_hash!(recv_value_22+1);
-               unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-                       assert_eq!(err, "Cannot send value that would put us under local channel reserve value"));
+               unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+                       assert!(regex::Regex::new(r"Cannot send value that would put our balance under counterparty-announced channel reserve value \(\d+\)").unwrap().is_match(err)));
                assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-               nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us under local channel reserve value".to_string(), 2);
+               nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send value that would put our balance under counterparty-announced channel reserve value".to_string(), 2);
        }
 
        let (route_22, our_payment_hash_22, our_payment_preimage_22) = get_route_and_payment_hash!(recv_value_22);
@@ -1931,16 +2138,16 @@ fn test_channel_reserve_holding_cell_htlcs() {
                let err = nodes[0].node.send_payment(&route, our_payment_hash, &None).err().unwrap();
                match err {
                        PaymentSendFailure::AllFailedRetrySafe(ref fails) => {
-                               match fails[0] {
-                                       APIError::ChannelUnavailable{err} =>
-                                               assert_eq!(err, "Cannot send value that would put us under local channel reserve value"),
+                               match &fails[0] {
+                                       &APIError::ChannelUnavailable{ref err} =>
+                                               assert!(regex::Regex::new(r"Cannot send value that would put our balance under counterparty-announced channel reserve value \(\d+\)").unwrap().is_match(err)),
                                        _ => panic!("Unexpected error variant"),
                                }
                        },
                        _ => panic!("Unexpected error variant"),
                }
                assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-               nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us under local channel reserve value".to_string(), 3);
+               nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send value that would put our balance under counterparty-announced channel reserve value".to_string(), 3);
        }
 
        send_payment(&nodes[0], &vec![&nodes[1], &nodes[2]][..], recv_value_3, recv_value_3);
@@ -2135,7 +2342,7 @@ fn channel_monitor_network_test() {
        {
                let mut node_txn = test_txn_broadcast(&nodes[1], &chan_1, None, HTLCType::NONE);
                let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![node_txn.drain(..).next().unwrap()] }, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![node_txn.drain(..).next().unwrap()] }, 1);
                check_added_monitors!(nodes[0], 1);
                test_txn_broadcast(&nodes[0], &chan_1, None, HTLCType::NONE);
        }
@@ -2152,7 +2359,7 @@ fn channel_monitor_network_test() {
        {
                let mut node_txn = test_txn_broadcast(&nodes[1], &chan_2, None, HTLCType::TIMEOUT);
                let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![node_txn.drain(..).next().unwrap()] }, 1);
+               connect_block(&nodes[2], &Block { header, txdata: vec![node_txn.drain(..).next().unwrap()] }, 1);
                check_added_monitors!(nodes[2], 1);
                test_txn_broadcast(&nodes[2], &chan_2, None, HTLCType::NONE);
        }
@@ -2193,7 +2400,7 @@ fn channel_monitor_network_test() {
                claim_funds!(nodes[3], nodes[2], payment_preimage_1, 3_000_000);
 
                let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[3].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone()] }, 1);
+               connect_block(&nodes[3], &Block { header, txdata: vec![node_txn[0].clone()] }, 1);
                check_added_monitors!(nodes[3], 1);
 
                check_preimage_claim(&nodes[3], &node_txn);
@@ -2204,7 +2411,7 @@ fn channel_monitor_network_test() {
 
        { // Cheat and reset nodes[4]'s height to 1
                let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[4].block_notifier.block_connected(&Block { header, txdata: vec![] }, 1);
+               connect_block(&nodes[4], &Block { header, txdata: vec![] }, 1);
        }
 
        assert_eq!(nodes[3].node.latest_block_height.load(Ordering::Acquire), 1);
@@ -2214,13 +2421,27 @@ fn channel_monitor_network_test() {
        // CLTV expires at TEST_FINAL_CLTV + 1 (current height) + 1 (added in send_payment for
        // buffer space).
 
-       {
-               let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[3].block_notifier.block_connected_checked(&header, 2, &Vec::new()[..], &[0; 0]);
+       let (close_chan_update_1, close_chan_update_2) = {
+               let mut block = Block {
+                       header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+                       txdata: vec![],
+               };
+               connect_block(&nodes[3], &block, 2);
                for i in 3..TEST_FINAL_CLTV + 2 + LATENCY_GRACE_PERIOD_BLOCKS + 1 {
-                       header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-                       nodes[3].block_notifier.block_connected_checked(&header, i, &Vec::new()[..], &[0; 0]);
+                       block = Block {
+                               header: BlockHeader { version: 0x20000000, prev_blockhash: block.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+                               txdata: vec![],
+                       };
+                       connect_block(&nodes[3], &block, i);
                }
+               let events = nodes[3].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               let close_chan_update_1 = match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { ref msg } => {
+                               msg.clone()
+                       },
+                       _ => panic!("Unexpected event"),
+               };
                check_added_monitors!(nodes[3], 1);
 
                // Clear bumped claiming txn spending node 2 commitment tx. Bumped txn are generated after reaching some height timer.
@@ -2238,23 +2459,41 @@ fn channel_monitor_network_test() {
                // Claim the payment on nodes[4], giving it knowledge of the preimage
                claim_funds!(nodes[4], nodes[3], payment_preimage_2, 3_000_000);
 
-               header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               block = Block {
+                       header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+                       txdata: vec![],
+               };
 
-               nodes[4].block_notifier.block_connected_checked(&header, 2, &Vec::new()[..], &[0; 0]);
+               connect_block(&nodes[4], &block, 2);
                for i in 3..TEST_FINAL_CLTV + 2 - CLTV_CLAIM_BUFFER + 1 {
-                       header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-                       nodes[4].block_notifier.block_connected_checked(&header, i, &Vec::new()[..], &[0; 0]);
+                       block = Block {
+                               header: BlockHeader { version: 0x20000000, prev_blockhash: block.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+                               txdata: vec![],
+                       };
+                       connect_block(&nodes[4], &block, i);
                }
-
+               let events = nodes[4].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               let close_chan_update_2 = match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { ref msg } => {
+                               msg.clone()
+                       },
+                       _ => panic!("Unexpected event"),
+               };
                check_added_monitors!(nodes[4], 1);
                test_txn_broadcast(&nodes[4], &chan_4, None, HTLCType::SUCCESS);
 
-               header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[4].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone()] }, TEST_FINAL_CLTV - 5);
+               block = Block {
+                       header: BlockHeader { version: 0x20000000, prev_blockhash: block.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+                       txdata: vec![node_txn[0].clone()],
+               };
+               connect_block(&nodes[4], &block, TEST_FINAL_CLTV - 5);
 
                check_preimage_claim(&nodes[4], &node_txn);
-       }
-       get_announce_close_broadcast_events(&nodes, 3, 4);
+               (close_chan_update_1, close_chan_update_2)
+       };
+       nodes[3].net_graph_msg_handler.handle_channel_update(&close_chan_update_2).unwrap();
+       nodes[4].net_graph_msg_handler.handle_channel_update(&close_chan_update_1).unwrap();
        assert_eq!(nodes[3].node.list_channels().len(), 0);
        assert_eq!(nodes[4].node.list_channels().len(), 0);
 }
@@ -2294,7 +2533,7 @@ fn test_justice_tx() {
 
        {
                let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                {
                        let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
                        assert_eq!(node_txn.len(), 2); // ChannelMonitor: penalty tx, ChannelManager: local commitment tx
@@ -2307,13 +2546,13 @@ fn test_justice_tx() {
                check_added_monitors!(nodes[1], 1);
                test_txn_broadcast(&nodes[1], &chan_5, None, HTLCType::NONE);
 
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                // Verify broadcast of revoked HTLC-timeout
                let node_txn = test_txn_broadcast(&nodes[0], &chan_5, Some(revoked_local_txn[0].clone()), HTLCType::TIMEOUT);
-               header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               header = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                check_added_monitors!(nodes[0], 1);
                // Broadcast revoked HTLC-timeout on node 1
-               nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[1].clone()] }, 1);
+               connect_block(&nodes[1], &Block { header, txdata: vec![node_txn[1].clone()] }, 1);
                test_revoked_htlc_claim_txn_broadcast(&nodes[1], node_txn[1].clone(), revoked_local_txn[0].clone());
        }
        get_announce_close_broadcast_events(&nodes, 0, 1);
@@ -2341,7 +2580,7 @@ fn test_justice_tx() {
        claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage_4, 3_000_000);
        {
                let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                {
                        let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                        assert_eq!(node_txn.len(), 2); //ChannelMonitor: penalty tx, ChannelManager: local commitment tx
@@ -2353,11 +2592,11 @@ fn test_justice_tx() {
                check_added_monitors!(nodes[0], 1);
                test_txn_broadcast(&nodes[0], &chan_6, None, HTLCType::NONE);
 
-               nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                let node_txn = test_txn_broadcast(&nodes[1], &chan_6, Some(revoked_local_txn[0].clone()), HTLCType::SUCCESS);
-               header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               header = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                check_added_monitors!(nodes[1], 1);
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[1].clone()] }, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![node_txn[1].clone()] }, 1);
                test_revoked_htlc_claim_txn_broadcast(&nodes[0], node_txn[1].clone(), revoked_local_txn[0].clone());
        }
        get_announce_close_broadcast_events(&nodes, 0, 1);
@@ -2384,7 +2623,7 @@ fn revoked_output_claim() {
 
        // Inform nodes[1] that nodes[0] broadcast a stale tx
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
        check_added_monitors!(nodes[1], 1);
        let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
        assert_eq!(node_txn.len(), 2); // ChannelMonitor: justice tx against revoked to_local output, ChannelManager: local commitment tx
@@ -2393,7 +2632,7 @@ fn revoked_output_claim() {
        check_spends!(node_txn[1], chan_1.3);
 
        // Inform nodes[0] that a watchtower cheated on its behalf, so it will force-close the chan
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
        get_announce_close_broadcast_events(&nodes, 0, 1);
        check_added_monitors!(nodes[0], 1)
 }
@@ -2430,11 +2669,11 @@ fn claim_htlc_outputs_shared_tx() {
 
        {
                let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                check_added_monitors!(nodes[0], 1);
-               nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                check_added_monitors!(nodes[1], 1);
-               connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+               connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
                expect_payment_failed!(nodes[1], payment_hash_2, true);
 
                let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
@@ -2493,13 +2732,13 @@ fn claim_htlc_outputs_single_tx() {
 
        {
                let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 200);
+               connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 200);
                check_added_monitors!(nodes[0], 1);
-               nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 200);
+               connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 200);
                check_added_monitors!(nodes[1], 1);
                expect_pending_htlcs_forwardable_ignore!(nodes[0]);
 
-               connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 200, true, header.bitcoin_hash());
+               connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 200, true, header.block_hash());
                expect_payment_failed!(nodes[1], payment_hash_2, true);
 
                let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
@@ -2542,8 +2781,8 @@ fn claim_htlc_outputs_single_tx() {
 
 #[test]
 fn test_htlc_on_chain_success() {
-       // Test that in case of a unilateral close onchain, we detect the state of output thanks to
-       // ChainWatchInterface and pass the preimage backward accordingly. So here we test that ChannelManager is
+       // Test that in case of a unilateral close onchain, we detect the state of output and pass
+       // the preimage backward accordingly. So here we test that ChannelManager is
        // broadcasting the right event to other nodes in payment path.
        // We test with two HTLCs simultaneously as that was not handled correctly in the past.
        // A --------------------> B ----------------------> C (preimage)
@@ -2587,7 +2826,7 @@ fn test_htlc_on_chain_success() {
        assert!(updates.update_fail_malformed_htlcs.is_empty());
        assert_eq!(updates.update_fulfill_htlcs.len(), 1);
 
-       nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+       connect_block(&nodes[2], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
        check_closed_broadcast!(nodes[2], false);
        check_added_monitors!(nodes[2], 1);
        let node_txn = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 3 (commitment tx, 2*htlc-success tx), ChannelMonitor : 2 (2 * HTLC-Success tx)
@@ -2605,16 +2844,16 @@ fn test_htlc_on_chain_success() {
        assert_eq!(node_txn[1].lock_time, 0);
 
        // Verify that B's ChannelManager is able to extract preimage from HTLC Success tx and pass it backward
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: node_txn}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: node_txn}, 1);
        {
-               let mut added_monitors = nodes[1].chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = nodes[1].chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 1);
                assert_eq!(added_monitors[0].0.txid, chan_2.3.txid());
                added_monitors.clear();
        }
        let events = nodes[1].node.get_and_clear_pending_msg_events();
        {
-               let mut added_monitors = nodes[1].chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = nodes[1].chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 2);
                assert_eq!(added_monitors[0].0.txid, chan_1.3.txid());
                assert_eq!(added_monitors[1].0.txid, chan_1.3.txid());
@@ -2678,7 +2917,7 @@ fn test_htlc_on_chain_success() {
        // Broadcast preimage tx by B on offered output from A commitment tx  on A's chain
        let commitment_tx = get_local_commitment_txn!(nodes[0], chan_1.2);
        check_spends!(commitment_tx[0], chan_1.3);
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
        let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 3 (commitment tx + HTLC-Sucess * 2), ChannelMonitor : 1 (HTLC-Success)
@@ -2697,7 +2936,7 @@ fn test_htlc_on_chain_success() {
        // we already checked the same situation with A.
 
        // Verify that A's ChannelManager is able to extract preimage from preimage tx and generate PaymentSent
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone(), node_txn[0].clone()] }, 1);
+       connect_block(&nodes[0], &Block { header, txdata: vec![commitment_tx[0].clone(), node_txn[0].clone()] }, 1);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
        let events = nodes[0].node.get_and_clear_pending_events();
@@ -2721,8 +2960,8 @@ fn test_htlc_on_chain_success() {
 
 #[test]
 fn test_htlc_on_chain_timeout() {
-       // Test that in case of a unilateral close onchain, we detect the state of output thanks to
-       // ChainWatchInterface and timeout the HTLC backward accordingly. So here we test that ChannelManager is
+       // Test that in case of a unilateral close onchain, we detect the state of output and
+       // timeout the HTLC backward accordingly. So here we test that ChannelManager is
        // broadcasting the right event to other nodes in payment path.
        // A ------------------> B ----------------------> C (timeout)
        //    B's commitment tx                 C's commitment tx
@@ -2765,7 +3004,7 @@ fn test_htlc_on_chain_timeout() {
                },
                _ => panic!("Unexpected event"),
        };
-       nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+       connect_block(&nodes[2], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
        check_closed_broadcast!(nodes[2], false);
        check_added_monitors!(nodes[2], 1);
        let node_txn = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 1 (commitment tx)
@@ -2775,7 +3014,7 @@ fn test_htlc_on_chain_timeout() {
 
        // Broadcast timeout transaction by B on received output from C's commitment tx on B's chain
        // Verify that B's ChannelManager is able to detect that HTLC is timeout by its own tx and react backward in consequence
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 200);
+       connect_block(&nodes[1], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 200);
        let timeout_tx;
        {
                let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
@@ -2795,8 +3034,8 @@ fn test_htlc_on_chain_timeout() {
                node_txn.clear();
        }
 
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![timeout_tx]}, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       connect_block(&nodes[1], &Block { header, txdata: vec![timeout_tx]}, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
        check_added_monitors!(nodes[1], 1);
        check_closed_broadcast!(nodes[1], false);
 
@@ -2821,7 +3060,7 @@ fn test_htlc_on_chain_timeout() {
        let commitment_tx = get_local_commitment_txn!(nodes[1], chan_1.2);
        check_spends!(commitment_tx[0], chan_1.3);
 
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 200);
+       connect_block(&nodes[0], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 200);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
        let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 2 (commitment tx, HTLC-Timeout tx), ChannelMonitor : 1 timeout tx
@@ -2857,8 +3096,8 @@ fn test_simple_commitment_revoked_fail_backward() {
        let (_, payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
        check_added_monitors!(nodes[1], 1);
        check_closed_broadcast!(nodes[1], false);
 
@@ -2924,7 +3163,7 @@ fn do_test_commitment_revoked_fail_backward_exhaustive(deliver_bs_raa: bool, use
        let value = if use_dust {
                // The dust limit applied to HTLC outputs considers the fee of the HTLC transaction as
                // well, so HTLCs at exactly the dust limit will not be included in commitment txn.
-               nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().our_dust_limit_satoshis * 1000
+               nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().holder_dust_limit_satoshis * 1000
        } else { 3000000 };
 
        let (_, first_payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], value);
@@ -3010,9 +3249,9 @@ fn do_test_commitment_revoked_fail_backward_exhaustive(deliver_bs_raa: bool, use
        assert!(nodes[1].node.get_and_clear_pending_events().is_empty());
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
        check_added_monitors!(nodes[1], 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        let events = nodes[1].node.get_and_clear_pending_events();
        assert_eq!(events.len(), if deliver_bs_raa { 1 } else { 2 });
@@ -3205,13 +3444,13 @@ fn test_htlc_ignore_latest_remote_commitment() {
        assert_eq!(node_txn.len(), 2);
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone(), node_txn[1].clone()]}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![node_txn[0].clone(), node_txn[1].clone()]}, 1);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
 
-       // Duplicate the block_connected call since this may happen due to other listeners
+       // Duplicate the connect_block call since this may happen due to other listeners
        // registering new transactions
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone(), node_txn[1].clone()]}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![node_txn[0].clone(), node_txn[1].clone()]}, 1);
 }
 
 #[test]
@@ -3270,8 +3509,11 @@ fn test_force_close_fail_back() {
                node_txn.remove(0)
        };
 
-       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected_checked(&header, 1, &[&tx], &[1]);
+       let block = Block {
+               header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+               txdata: vec![tx.clone()],
+       };
+       connect_block(&nodes[1], &block, 1);
 
        // Note no UpdateHTLCs event here from nodes[1] to nodes[0]!
        check_closed_broadcast!(nodes[1], false);
@@ -3279,11 +3521,11 @@ fn test_force_close_fail_back() {
 
        // Now check that if we add the preimage to ChannelMonitor it broadcasts our HTLC-Success..
        {
-               let mut monitors = nodes[2].chan_monitor.simple_monitor.monitors.lock().unwrap();
+               let mut monitors = nodes[2].chain_monitor.chain_monitor.monitors.lock().unwrap();
                monitors.get_mut(&OutPoint{ txid: Txid::from_slice(&payment_event.commitment_msg.channel_id[..]).unwrap(), index: 0 }).unwrap()
                        .provide_payment_preimage(&our_payment_hash, &our_payment_preimage);
        }
-       nodes[2].block_notifier.block_connected_checked(&header, 1, &[&tx], &[1]);
+       connect_block(&nodes[2], &block, 1);
        let node_txn = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap();
        assert_eq!(node_txn.len(), 1);
        assert_eq!(node_txn[0].input.len(), 1);
@@ -3312,13 +3554,11 @@ fn test_unconf_chan() {
        let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
        headers.push(header.clone());
        for _i in 2..100 {
-               header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               header = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                headers.push(header.clone());
        }
-       let mut height = 99;
        while !headers.is_empty() {
-               nodes[0].node.block_disconnected(&headers.pop().unwrap(), height);
-               height -= 1;
+               nodes[0].node.block_disconnected(&headers.pop().unwrap());
        }
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
@@ -3402,7 +3642,9 @@ fn do_test_drop_messages_peer_disconnect(messages_delivered: u8) {
        let logger = test_utils::TestLogger::new();
        let payment_event = {
                let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
-               let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), Some(&nodes[0].node.list_usable_channels()), &Vec::new(), 1000000, TEST_FINAL_CLTV, &logger).unwrap();
+               let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(),
+                       &nodes[1].node.get_our_node_id(), Some(&nodes[0].node.list_usable_channels().iter().collect::<Vec<_>>()),
+                       &Vec::new(), 1000000, TEST_FINAL_CLTV, &logger).unwrap();
                nodes[0].node.send_payment(&route, payment_hash_1, &None).unwrap();
                check_added_monitors!(nodes[0], 1);
 
@@ -3577,7 +3819,9 @@ fn do_test_drop_messages_peer_disconnect(messages_delivered: u8) {
 
        // Channel should still work fine...
        let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
-       let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), Some(&nodes[0].node.list_usable_channels()), &Vec::new(), 1000000, TEST_FINAL_CLTV, &logger).unwrap();
+       let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(),
+               &nodes[1].node.get_our_node_id(), Some(&nodes[0].node.list_usable_channels().iter().collect::<Vec<_>>()),
+               &Vec::new(), 1000000, TEST_FINAL_CLTV, &logger).unwrap();
        let payment_preimage_2 = send_along_route(&nodes[0], route, &[&nodes[1]], 1000000).0;
        claim_payment(&nodes[0], &[&nodes[1]], payment_preimage_2, 1_000_000);
 }
@@ -3609,7 +3853,7 @@ fn test_funding_peer_disconnect() {
        nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
        nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
 
-       confirm_transaction(&nodes[0].block_notifier, &nodes[0].chain_monitor, &tx, tx.version);
+       confirm_transaction(&nodes[0], &tx);
        let events_1 = nodes[0].node.get_and_clear_pending_msg_events();
        assert_eq!(events_1.len(), 1);
        match events_1[0] {
@@ -3624,7 +3868,7 @@ fn test_funding_peer_disconnect() {
        nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
        nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
 
-       confirm_transaction(&nodes[1].block_notifier, &nodes[1].chain_monitor, &tx, tx.version);
+       confirm_transaction(&nodes[1], &tx);
        let events_2 = nodes[1].node.get_and_clear_pending_msg_events();
        assert_eq!(events_2.len(), 2);
        let funding_locked = match events_2[0] {
@@ -3857,13 +4101,16 @@ fn do_test_htlc_timeout(send_partial_mpp: bool) {
                route_payment(&nodes[0], &[&nodes[1]], 100000).1
        };
 
-       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected_checked(&header, 101, &[], &[]);
-       nodes[1].block_notifier.block_connected_checked(&header, 101, &[], &[]);
+       let mut block = Block {
+               header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+               txdata: vec![],
+       };
+       connect_block(&nodes[0], &block, 101);
+       connect_block(&nodes[1], &block, 101);
        for i in 102..TEST_FINAL_CLTV + 100 + 1 - CLTV_CLAIM_BUFFER - LATENCY_GRACE_PERIOD_BLOCKS {
-               header.prev_blockhash = header.bitcoin_hash();
-               nodes[0].block_notifier.block_connected_checked(&header, i, &[], &[]);
-               nodes[1].block_notifier.block_connected_checked(&header, i, &[], &[]);
+               block.header.prev_blockhash = block.block_hash();
+               connect_block(&nodes[0], &block, i);
+               connect_block(&nodes[1], &block, i);
        }
 
        expect_pending_htlcs_forwardable!(nodes[1]);
@@ -3928,18 +4175,21 @@ fn do_test_holding_cell_htlc_add_timeouts(forwarded_htlc: bool) {
                check_added_monitors!(nodes[1], 0);
        }
 
-       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected_checked(&header, 101, &[], &[]);
+       let mut block = Block {
+               header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+               txdata: vec![],
+       };
+       connect_block(&nodes[1], &block, 101);
        for i in 102..TEST_FINAL_CLTV + 100 - CLTV_CLAIM_BUFFER - LATENCY_GRACE_PERIOD_BLOCKS {
-               header.prev_blockhash = header.bitcoin_hash();
-               nodes[1].block_notifier.block_connected_checked(&header, i, &[], &[]);
+               block.header.prev_blockhash = block.block_hash();
+               connect_block(&nodes[1], &block, i);
        }
 
        assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
        assert!(nodes[1].node.get_and_clear_pending_events().is_empty());
 
-       header.prev_blockhash = header.bitcoin_hash();
-       nodes[1].block_notifier.block_connected_checked(&header, TEST_FINAL_CLTV + 100 - CLTV_CLAIM_BUFFER - LATENCY_GRACE_PERIOD_BLOCKS, &[], &[]);
+       block.header.prev_blockhash = block.block_hash();
+       connect_block(&nodes[1], &block, TEST_FINAL_CLTV + 100 - CLTV_CLAIM_BUFFER - LATENCY_GRACE_PERIOD_BLOCKS);
 
        if forwarded_htlc {
                expect_pending_htlcs_forwardable!(nodes[1]);
@@ -3991,8 +4241,8 @@ fn test_invalid_channel_announcement() {
 
        nodes[0].net_graph_msg_handler.handle_htlc_fail_channel_update(&msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id : as_chan.get_short_channel_id().unwrap(), is_permanent: false } );
 
-       let as_bitcoin_key = as_chan.get_local_keys().inner.local_channel_pubkeys.funding_pubkey;
-       let bs_bitcoin_key = bs_chan.get_local_keys().inner.local_channel_pubkeys.funding_pubkey;
+       let as_bitcoin_key = as_chan.get_keys().inner.holder_channel_pubkeys.funding_pubkey;
+       let bs_bitcoin_key = bs_chan.get_keys().inner.holder_channel_pubkeys.funding_pubkey;
 
        let as_network_key = nodes[0].node.get_our_node_id();
        let bs_network_key = nodes[1].node.get_our_node_id();
@@ -4005,7 +4255,7 @@ fn test_invalid_channel_announcement() {
                () => {
                        msgs::UnsignedChannelAnnouncement {
                                features: ChannelFeatures::known(),
-                               chain_hash: genesis_block(Network::Testnet).header.bitcoin_hash(),
+                               chain_hash: genesis_block(Network::Testnet).header.block_hash(),
                                short_channel_id: as_chan.get_short_channel_id().unwrap(),
                                node_id_1: if were_node_one { as_network_key } else { bs_network_key },
                                node_id_2: if were_node_one { bs_network_key } else { as_network_key },
@@ -4019,8 +4269,8 @@ fn test_invalid_channel_announcement() {
        macro_rules! sign_msg {
                ($unsigned_msg: expr) => {
                        let msghash = Message::from_slice(&Sha256dHash::hash(&$unsigned_msg.encode()[..])[..]).unwrap();
-                       let as_bitcoin_sig = secp_ctx.sign(&msghash, &as_chan.get_local_keys().inner.funding_key);
-                       let bs_bitcoin_sig = secp_ctx.sign(&msghash, &bs_chan.get_local_keys().inner.funding_key);
+                       let as_bitcoin_sig = secp_ctx.sign(&msghash, &as_chan.get_keys().inner.funding_key);
+                       let bs_bitcoin_sig = secp_ctx.sign(&msghash, &bs_chan.get_keys().inner.funding_key);
                        let as_node_sig = secp_ctx.sign(&msghash, &nodes[0].keys_manager.get_node_secret());
                        let bs_node_sig = secp_ctx.sign(&msghash, &nodes[1].keys_manager.get_node_secret());
                        chan_announcement = msgs::ChannelAnnouncement {
@@ -4040,7 +4290,7 @@ fn test_invalid_channel_announcement() {
 
        // Configured with Network::Testnet
        let mut unsigned_msg = dummy_unsigned_msg!();
-       unsigned_msg.chain_hash = genesis_block(Network::Bitcoin).header.bitcoin_hash();
+       unsigned_msg.chain_hash = genesis_block(Network::Bitcoin).header.block_hash();
        sign_msg!(unsigned_msg);
        assert!(nodes[0].net_graph_msg_handler.handle_channel_announcement(&chan_announcement).is_err());
 
@@ -4057,9 +4307,10 @@ fn test_no_txn_manager_serialize_deserialize() {
        let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None]);
        let logger: test_utils::TestLogger;
        let fee_estimator: test_utils::TestFeeEstimator;
-       let new_chan_monitor: test_utils::TestChannelMonitor;
+       let persister: test_utils::TestPersister;
+       let new_chain_monitor: test_utils::TestChainMonitor;
        let keys_manager: test_utils::TestKeysInterface;
-       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
+       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
        let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
        let tx = create_chan_between_nodes_with_value_init(&nodes[0], &nodes[1], 100000, 10001, InitFeatures::known(), InitFeatures::known());
@@ -4068,12 +4319,13 @@ fn test_no_txn_manager_serialize_deserialize() {
 
        let nodes_0_serialized = nodes[0].node.encode();
        let mut chan_0_monitor_serialized = test_utils::TestVecWriter(Vec::new());
-       nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap().iter().next().unwrap().1.write_for_disk(&mut chan_0_monitor_serialized).unwrap();
+       nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap().iter().next().unwrap().1.serialize_for_disk(&mut chan_0_monitor_serialized).unwrap();
 
        logger = test_utils::TestLogger::new();
        fee_estimator = test_utils::TestFeeEstimator { sat_per_kw: 253 };
-       new_chan_monitor = test_utils::TestChannelMonitor::new(nodes[0].chain_monitor.clone(), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator);
-       nodes[0].chan_monitor = &new_chan_monitor;
+       persister = test_utils::TestPersister::new();
+       new_chain_monitor = test_utils::TestChainMonitor::new(Some(nodes[0].chain_source), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator, &persister);
+       nodes[0].chain_monitor = &new_chain_monitor;
        let mut chan_0_monitor_read = &chan_0_monitor_serialized.0[..];
        let (_, mut chan_0_monitor) = <(BlockHash, ChannelMonitor<EnforcingChannelKeys>)>::read(&mut chan_0_monitor_read).unwrap();
        assert!(chan_0_monitor_read.is_empty());
@@ -4084,22 +4336,21 @@ fn test_no_txn_manager_serialize_deserialize() {
        let (_, nodes_0_deserialized_tmp) = {
                let mut channel_monitors = HashMap::new();
                channel_monitors.insert(chan_0_monitor.get_funding_txo().0, &mut chan_0_monitor);
-               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
+               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
                        default_config: config,
                        keys_manager: &keys_manager,
                        fee_estimator: &fee_estimator,
-                       monitor: nodes[0].chan_monitor,
+                       chain_monitor: nodes[0].chain_monitor,
                        tx_broadcaster: nodes[0].tx_broadcaster.clone(),
                        logger: &logger,
-                       channel_monitors: &mut channel_monitors,
+                       channel_monitors,
                }).unwrap()
        };
        nodes_0_deserialized = nodes_0_deserialized_tmp;
        assert!(nodes_0_read.is_empty());
 
-       assert!(nodes[0].chan_monitor.add_monitor(chan_0_monitor.get_funding_txo().0, chan_0_monitor).is_ok());
+       assert!(nodes[0].chain_monitor.watch_channel(chan_0_monitor.get_funding_txo().0, chan_0_monitor).is_ok());
        nodes[0].node = &nodes_0_deserialized;
-       nodes[0].block_notifier.register_listener(nodes[0].node);
        assert_eq!(nodes[0].node.list_channels().len(), 1);
        check_added_monitors!(nodes[0], 1);
 
@@ -4131,10 +4382,11 @@ fn test_manager_serialize_deserialize_events() {
        let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
        let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None]);
        let fee_estimator: test_utils::TestFeeEstimator;
+       let persister: test_utils::TestPersister;
        let logger: test_utils::TestLogger;
-       let new_chan_monitor: test_utils::TestChannelMonitor;
+       let new_chain_monitor: test_utils::TestChainMonitor;
        let keys_manager: test_utils::TestKeysInterface;
-       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
+       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
        let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
        // Start creating a channel, but stop right before broadcasting the event message FundingBroadcastSafe
@@ -4155,7 +4407,7 @@ fn test_manager_serialize_deserialize_events() {
 
        node_b.node.handle_funding_created(&node_a.node.get_our_node_id(), &get_event_msg!(node_a, MessageSendEvent::SendFundingCreated, node_b.node.get_our_node_id()));
        {
-               let mut added_monitors = node_b.chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = node_b.chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 1);
                assert_eq!(added_monitors[0].0, funding_output);
                added_monitors.clear();
@@ -4163,7 +4415,7 @@ fn test_manager_serialize_deserialize_events() {
 
        node_a.node.handle_funding_signed(&node_b.node.get_our_node_id(), &get_event_msg!(node_b, MessageSendEvent::SendFundingSigned, node_a.node.get_our_node_id()));
        {
-               let mut added_monitors = node_a.chan_monitor.added_monitors.lock().unwrap();
+               let mut added_monitors = node_a.chain_monitor.added_monitors.lock().unwrap();
                assert_eq!(added_monitors.len(), 1);
                assert_eq!(added_monitors[0].0, funding_output);
                added_monitors.clear();
@@ -4176,12 +4428,13 @@ fn test_manager_serialize_deserialize_events() {
        // Start the de/seriailization process mid-channel creation to check that the channel manager will hold onto events that are serialized
        let nodes_0_serialized = nodes[0].node.encode();
        let mut chan_0_monitor_serialized = test_utils::TestVecWriter(Vec::new());
-       nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap().iter().next().unwrap().1.write_for_disk(&mut chan_0_monitor_serialized).unwrap();
+       nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap().iter().next().unwrap().1.serialize_for_disk(&mut chan_0_monitor_serialized).unwrap();
 
        fee_estimator = test_utils::TestFeeEstimator { sat_per_kw: 253 };
        logger = test_utils::TestLogger::new();
-       new_chan_monitor = test_utils::TestChannelMonitor::new(nodes[0].chain_monitor.clone(), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator);
-       nodes[0].chan_monitor = &new_chan_monitor;
+       persister = test_utils::TestPersister::new();
+       new_chain_monitor = test_utils::TestChainMonitor::new(Some(nodes[0].chain_source), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator, &persister);
+       nodes[0].chain_monitor = &new_chain_monitor;
        let mut chan_0_monitor_read = &chan_0_monitor_serialized.0[..];
        let (_, mut chan_0_monitor) = <(BlockHash, ChannelMonitor<EnforcingChannelKeys>)>::read(&mut chan_0_monitor_read).unwrap();
        assert!(chan_0_monitor_read.is_empty());
@@ -4192,14 +4445,14 @@ fn test_manager_serialize_deserialize_events() {
        let (_, nodes_0_deserialized_tmp) = {
                let mut channel_monitors = HashMap::new();
                channel_monitors.insert(chan_0_monitor.get_funding_txo().0, &mut chan_0_monitor);
-               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
+               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
                        default_config: config,
                        keys_manager: &keys_manager,
                        fee_estimator: &fee_estimator,
-                       monitor: nodes[0].chan_monitor,
+                       chain_monitor: nodes[0].chain_monitor,
                        tx_broadcaster: nodes[0].tx_broadcaster.clone(),
                        logger: &logger,
-                       channel_monitors: &mut channel_monitors,
+                       channel_monitors,
                }).unwrap()
        };
        nodes_0_deserialized = nodes_0_deserialized_tmp;
@@ -4207,7 +4460,7 @@ fn test_manager_serialize_deserialize_events() {
 
        nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
 
-       assert!(nodes[0].chan_monitor.add_monitor(chan_0_monitor.get_funding_txo().0, chan_0_monitor).is_ok());
+       assert!(nodes[0].chain_monitor.watch_channel(chan_0_monitor.get_funding_txo().0, chan_0_monitor).is_ok());
        nodes[0].node = &nodes_0_deserialized;
 
        // After deserializing, make sure the FundingBroadcastSafe event is still held by the channel manager
@@ -4222,7 +4475,6 @@ fn test_manager_serialize_deserialize_events() {
        };
 
        // Make sure the channel is functioning as though the de/serialization never happened
-       nodes[0].block_notifier.register_listener(nodes[0].node);
        assert_eq!(nodes[0].node.list_channels().len(), 1);
        check_added_monitors!(nodes[0], 1);
 
@@ -4254,9 +4506,10 @@ fn test_simple_manager_serialize_deserialize() {
        let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None]);
        let logger: test_utils::TestLogger;
        let fee_estimator: test_utils::TestFeeEstimator;
-       let new_chan_monitor: test_utils::TestChannelMonitor;
+       let persister: test_utils::TestPersister;
+       let new_chain_monitor: test_utils::TestChainMonitor;
        let keys_manager: test_utils::TestKeysInterface;
-       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
+       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
        let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
        create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known());
 
@@ -4267,12 +4520,13 @@ fn test_simple_manager_serialize_deserialize() {
 
        let nodes_0_serialized = nodes[0].node.encode();
        let mut chan_0_monitor_serialized = test_utils::TestVecWriter(Vec::new());
-       nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap().iter().next().unwrap().1.write_for_disk(&mut chan_0_monitor_serialized).unwrap();
+       nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap().iter().next().unwrap().1.serialize_for_disk(&mut chan_0_monitor_serialized).unwrap();
 
        logger = test_utils::TestLogger::new();
        fee_estimator = test_utils::TestFeeEstimator { sat_per_kw: 253 };
-       new_chan_monitor = test_utils::TestChannelMonitor::new(nodes[0].chain_monitor.clone(), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator);
-       nodes[0].chan_monitor = &new_chan_monitor;
+       persister = test_utils::TestPersister::new();
+       new_chain_monitor = test_utils::TestChainMonitor::new(Some(nodes[0].chain_source), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator, &persister);
+       nodes[0].chain_monitor = &new_chain_monitor;
        let mut chan_0_monitor_read = &chan_0_monitor_serialized.0[..];
        let (_, mut chan_0_monitor) = <(BlockHash, ChannelMonitor<EnforcingChannelKeys>)>::read(&mut chan_0_monitor_read).unwrap();
        assert!(chan_0_monitor_read.is_empty());
@@ -4282,20 +4536,20 @@ fn test_simple_manager_serialize_deserialize() {
        let (_, nodes_0_deserialized_tmp) = {
                let mut channel_monitors = HashMap::new();
                channel_monitors.insert(chan_0_monitor.get_funding_txo().0, &mut chan_0_monitor);
-               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
+               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
                        default_config: UserConfig::default(),
                        keys_manager: &keys_manager,
                        fee_estimator: &fee_estimator,
-                       monitor: nodes[0].chan_monitor,
+                       chain_monitor: nodes[0].chain_monitor,
                        tx_broadcaster: nodes[0].tx_broadcaster.clone(),
                        logger: &logger,
-                       channel_monitors: &mut channel_monitors,
+                       channel_monitors,
                }).unwrap()
        };
        nodes_0_deserialized = nodes_0_deserialized_tmp;
        assert!(nodes_0_read.is_empty());
 
-       assert!(nodes[0].chan_monitor.add_monitor(chan_0_monitor.get_funding_txo().0, chan_0_monitor).is_ok());
+       assert!(nodes[0].chain_monitor.watch_channel(chan_0_monitor.get_funding_txo().0, chan_0_monitor).is_ok());
        nodes[0].node = &nodes_0_deserialized;
        check_added_monitors!(nodes[0], 1);
 
@@ -4313,18 +4567,19 @@ fn test_manager_serialize_deserialize_inconsistent_monitor() {
        let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
        let logger: test_utils::TestLogger;
        let fee_estimator: test_utils::TestFeeEstimator;
-       let new_chan_monitor: test_utils::TestChannelMonitor;
+       let persister: test_utils::TestPersister;
+       let new_chain_monitor: test_utils::TestChainMonitor;
        let keys_manager: test_utils::TestKeysInterface;
-       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
+       let nodes_0_deserialized: ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>;
        let mut nodes = create_network(4, &node_cfgs, &node_chanmgrs);
        create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known());
        create_announced_chan_between_nodes(&nodes, 2, 0, InitFeatures::known(), InitFeatures::known());
        let (_, _, channel_id, funding_tx) = create_announced_chan_between_nodes(&nodes, 0, 3, InitFeatures::known(), InitFeatures::known());
 
        let mut node_0_stale_monitors_serialized = Vec::new();
-       for monitor in nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap().iter() {
+       for monitor in nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap().iter() {
                let mut writer = test_utils::TestVecWriter(Vec::new());
-               monitor.1.write_for_disk(&mut writer).unwrap();
+               monitor.1.serialize_for_disk(&mut writer).unwrap();
                node_0_stale_monitors_serialized.push(writer.0);
        }
 
@@ -4341,16 +4596,17 @@ fn test_manager_serialize_deserialize_inconsistent_monitor() {
        // Now the ChannelMonitor (which is now out-of-sync with ChannelManager for channel w/
        // nodes[3])
        let mut node_0_monitors_serialized = Vec::new();
-       for monitor in nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap().iter() {
+       for monitor in nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap().iter() {
                let mut writer = test_utils::TestVecWriter(Vec::new());
-               monitor.1.write_for_disk(&mut writer).unwrap();
+               monitor.1.serialize_for_disk(&mut writer).unwrap();
                node_0_monitors_serialized.push(writer.0);
        }
 
        logger = test_utils::TestLogger::new();
        fee_estimator = test_utils::TestFeeEstimator { sat_per_kw: 253 };
-       new_chan_monitor = test_utils::TestChannelMonitor::new(nodes[0].chain_monitor.clone(), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator);
-       nodes[0].chan_monitor = &new_chan_monitor;
+       persister = test_utils::TestPersister::new();
+       new_chain_monitor = test_utils::TestChainMonitor::new(Some(nodes[0].chain_source), nodes[0].tx_broadcaster.clone(), &logger, &fee_estimator, &persister);
+       nodes[0].chain_monitor = &new_chain_monitor;
 
        let mut node_0_stale_monitors = Vec::new();
        for serialized in node_0_stale_monitors_serialized.iter() {
@@ -4372,28 +4628,28 @@ fn test_manager_serialize_deserialize_inconsistent_monitor() {
 
        let mut nodes_0_read = &nodes_0_serialized[..];
        if let Err(msgs::DecodeError::InvalidValue) =
-               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
+               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
                default_config: UserConfig::default(),
                keys_manager: &keys_manager,
                fee_estimator: &fee_estimator,
-               monitor: nodes[0].chan_monitor,
+               chain_monitor: nodes[0].chain_monitor,
                tx_broadcaster: nodes[0].tx_broadcaster.clone(),
                logger: &logger,
-               channel_monitors: &mut node_0_stale_monitors.iter_mut().map(|monitor| { (monitor.get_funding_txo().0, monitor) }).collect(),
+               channel_monitors: node_0_stale_monitors.iter_mut().map(|monitor| { (monitor.get_funding_txo().0, monitor) }).collect(),
        }) { } else {
                panic!("If the monitor(s) are stale, this indicates a bug and we should get an Err return");
        };
 
        let mut nodes_0_read = &nodes_0_serialized[..];
        let (_, nodes_0_deserialized_tmp) =
-               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
+               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut nodes_0_read, ChannelManagerReadArgs {
                default_config: UserConfig::default(),
                keys_manager: &keys_manager,
                fee_estimator: &fee_estimator,
-               monitor: nodes[0].chan_monitor,
+               chain_monitor: nodes[0].chain_monitor,
                tx_broadcaster: nodes[0].tx_broadcaster.clone(),
                logger: &logger,
-               channel_monitors: &mut node_0_monitors.iter_mut().map(|monitor| { (monitor.get_funding_txo().0, monitor) }).collect(),
+               channel_monitors: node_0_monitors.iter_mut().map(|monitor| { (monitor.get_funding_txo().0, monitor) }).collect(),
        }).unwrap();
        nodes_0_deserialized = nodes_0_deserialized_tmp;
        assert!(nodes_0_read.is_empty());
@@ -4406,7 +4662,7 @@ fn test_manager_serialize_deserialize_inconsistent_monitor() {
        }
 
        for monitor in node_0_monitors.drain(..) {
-               assert!(nodes[0].chan_monitor.add_monitor(monitor.get_funding_txo().0, monitor).is_ok());
+               assert!(nodes[0].chain_monitor.watch_channel(monitor.get_funding_txo().0, monitor).is_ok());
                check_added_monitors!(nodes[0], 1);
        }
        nodes[0].node = &nodes_0_deserialized;
@@ -4436,16 +4692,16 @@ fn test_manager_serialize_deserialize_inconsistent_monitor() {
 macro_rules! check_spendable_outputs {
        ($node: expr, $der_idx: expr, $keysinterface: expr, $chan_value: expr) => {
                {
-                       let events = $node.chan_monitor.simple_monitor.get_and_clear_pending_events();
+                       let events = $node.chain_monitor.chain_monitor.get_and_clear_pending_events();
                        let mut txn = Vec::new();
                        for event in events {
                                match event {
                                        Event::SpendableOutputs { ref outputs } => {
                                                for outp in outputs {
                                                        match *outp {
-                                                               SpendableOutputDescriptor::StaticOutputRemotePayment { ref outpoint, ref output, ref key_derivation_params } => {
+                                                               SpendableOutputDescriptor::StaticOutputCounterpartyPayment { ref outpoint, ref output, ref key_derivation_params } => {
                                                                        let input = TxIn {
-                                                                               previous_output: outpoint.clone(),
+                                                                               previous_output: outpoint.into_bitcoin_outpoint(),
                                                                                script_sig: Script::new(),
                                                                                sequence: 0,
                                                                                witness: Vec::new(),
@@ -4460,20 +4716,21 @@ macro_rules! check_spendable_outputs {
                                                                                input: vec![input],
                                                                                output: vec![outp],
                                                                        };
+                                                                       spend_tx.output[0].value -= (spend_tx.get_weight() + 2 + 1 + 73 + 35 + 3) as u64 / 4; // (Max weight + 3 (to round up)) / 4
                                                                        let secp_ctx = Secp256k1::new();
                                                                        let keys = $keysinterface.derive_channel_keys($chan_value, key_derivation_params.0, key_derivation_params.1);
                                                                        let remotepubkey = keys.pubkeys().payment_point;
                                                                        let witness_script = Address::p2pkh(&::bitcoin::PublicKey{compressed: true, key: remotepubkey}, Network::Testnet).script_pubkey();
-                                                                       let sighash = Message::from_slice(&bip143::SighashComponents::new(&spend_tx).sighash_all(&spend_tx.input[0], &witness_script, output.value)[..]).unwrap();
+                                                                       let sighash = Message::from_slice(&bip143::SigHashCache::new(&spend_tx).signature_hash(0, &witness_script, output.value, SigHashType::All)[..]).unwrap();
                                                                        let remotesig = secp_ctx.sign(&sighash, &keys.inner.payment_key);
                                                                        spend_tx.input[0].witness.push(remotesig.serialize_der().to_vec());
                                                                        spend_tx.input[0].witness[0].push(SigHashType::All as u8);
                                                                        spend_tx.input[0].witness.push(remotepubkey.serialize().to_vec());
                                                                        txn.push(spend_tx);
                                                                },
-                                                               SpendableOutputDescriptor::DynamicOutputP2WSH { ref outpoint, ref per_commitment_point, ref to_self_delay, ref output, ref key_derivation_params, ref remote_revocation_pubkey } => {
+                                                               SpendableOutputDescriptor::DynamicOutputP2WSH { ref outpoint, ref per_commitment_point, ref to_self_delay, ref output, ref key_derivation_params, ref revocation_pubkey } => {
                                                                        let input = TxIn {
-                                                                               previous_output: outpoint.clone(),
+                                                                               previous_output: outpoint.into_bitcoin_outpoint(),
                                                                                script_sig: Script::new(),
                                                                                sequence: *to_self_delay as u32,
                                                                                witness: Vec::new(),
@@ -4493,8 +4750,9 @@ macro_rules! check_spendable_outputs {
                                                                        if let Ok(delayed_payment_key) = chan_utils::derive_private_key(&secp_ctx, &per_commitment_point, &keys.inner.delayed_payment_base_key) {
 
                                                                                let delayed_payment_pubkey = PublicKey::from_secret_key(&secp_ctx, &delayed_payment_key);
-                                                                               let witness_script = chan_utils::get_revokeable_redeemscript(remote_revocation_pubkey, *to_self_delay, &delayed_payment_pubkey);
-                                                                               let sighash = Message::from_slice(&bip143::SighashComponents::new(&spend_tx).sighash_all(&spend_tx.input[0], &witness_script, output.value)[..]).unwrap();
+                                                                               let witness_script = chan_utils::get_revokeable_redeemscript(revocation_pubkey, *to_self_delay, &delayed_payment_pubkey);
+                                                                               spend_tx.output[0].value -= (spend_tx.get_weight() + 2 + 1 + 73 + 1 + witness_script.len() + 1 + 3) as u64 / 4; // (Max weight + 3 (to round up)) / 4
+                                                                               let sighash = Message::from_slice(&bip143::SigHashCache::new(&spend_tx).signature_hash(0, &witness_script, output.value, SigHashType::All)[..]).unwrap();
                                                                                let local_delayedsig = secp_ctx.sign(&sighash, &delayed_payment_key);
                                                                                spend_tx.input[0].witness.push(local_delayedsig.serialize_der().to_vec());
                                                                                spend_tx.input[0].witness[0].push(SigHashType::All as u8);
@@ -4506,7 +4764,7 @@ macro_rules! check_spendable_outputs {
                                                                SpendableOutputDescriptor::StaticOutput { ref outpoint, ref output } => {
                                                                        let secp_ctx = Secp256k1::new();
                                                                        let input = TxIn {
-                                                                               previous_output: outpoint.clone(),
+                                                                               previous_output: outpoint.into_bitcoin_outpoint(),
                                                                                script_sig: Script::new(),
                                                                                sequence: 0,
                                                                                witness: Vec::new(),
@@ -4521,6 +4779,7 @@ macro_rules! check_spendable_outputs {
                                                                                input: vec![input],
                                                                                output: vec![outp.clone()],
                                                                        };
+                                                                       spend_tx.output[0].value -= (spend_tx.get_weight() + 2 + 1 + 73 + 35 + 3) as u64 / 4; // (Max weight + 3 (to round up)) / 4
                                                                        let secret = {
                                                                                match ExtendedPrivKey::new_master(Network::Testnet, &$node.node_seed) {
                                                                                        Ok(master_key) => {
@@ -4534,7 +4793,7 @@ macro_rules! check_spendable_outputs {
                                                                        };
                                                                        let pubkey = ExtendedPubKey::from_private(&secp_ctx, &secret).public_key;
                                                                        let witness_script = Address::p2pkh(&pubkey, Network::Testnet).script_pubkey();
-                                                                       let sighash = Message::from_slice(&bip143::SighashComponents::new(&spend_tx).sighash_all(&spend_tx.input[0], &witness_script, output.value)[..]).unwrap();
+                                                                       let sighash = Message::from_slice(&bip143::SigHashCache::new(&spend_tx).signature_hash(0, &witness_script, output.value, SigHashType::All)[..]).unwrap();
                                                                        let sig = secp_ctx.sign(&sighash, &secret.private_key.key);
                                                                        spend_tx.input[0].witness.push(sig.serialize_der().to_vec());
                                                                        spend_tx.input[0].witness[0].push(SigHashType::All as u8);
@@ -4570,8 +4829,8 @@ fn test_claim_sizeable_push_msat() {
        assert_eq!(node_txn[0].output.len(), 2); // We can't force trimming of to_remote output as channel_reserve_satoshis block us to do so at channel opening
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone()] }, 0);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       connect_block(&nodes[1], &Block { header, txdata: vec![node_txn[0].clone()] }, 0);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
        assert_eq!(spend_txn.len(), 1);
@@ -4598,14 +4857,13 @@ fn test_claim_on_remote_sizeable_push_msat() {
        assert_eq!(node_txn[0].output.len(), 2); // We can't force trimming of to_remote output as channel_reserve_satoshis block us to do so at channel opening
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone()] }, 0);
+       connect_block(&nodes[1], &Block { header, txdata: vec![node_txn[0].clone()] }, 0);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 2);
-       assert_eq!(spend_txn[0], spend_txn[1]);
+       assert_eq!(spend_txn.len(), 1);
        check_spends!(spend_txn[0], node_txn[0]);
 }
 
@@ -4627,20 +4885,19 @@ fn test_claim_on_remote_revoked_sizeable_push_msat() {
 
        claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage, 3_000_000);
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 0);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 0);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
 
        let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
-       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[1], &Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 3);
-       assert_eq!(spend_txn[0], spend_txn[1]); // to_remote output on revoked remote commitment_tx
-       check_spends!(spend_txn[0], revoked_local_txn[0]);
-       check_spends!(spend_txn[2], node_txn[0]);
+       assert_eq!(spend_txn.len(), 2);
+       check_spends!(spend_txn[0], revoked_local_txn[0]); // to_remote output on revoked remote commitment_tx
+       check_spends!(spend_txn[1], node_txn[0]);
 }
 
 #[test]
@@ -4663,7 +4920,7 @@ fn test_static_spendable_outputs_preimage_tx() {
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
        assert!(nodes[1].node.claim_funds(payment_preimage, &None, 3_000_000));
        check_added_monitors!(nodes[1], 1);
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![commitment_tx[0].clone()] }, 1);
        check_added_monitors!(nodes[1], 1);
        let events = nodes[1].node.get_and_clear_pending_msg_events();
        match events[0] {
@@ -4683,9 +4940,9 @@ fn test_static_spendable_outputs_preimage_tx() {
        check_spends!(node_txn[1], chan_1.3);
        check_spends!(node_txn[2], node_txn[1]);
 
-       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[1], &Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
        assert_eq!(spend_txn.len(), 1);
@@ -4713,7 +4970,7 @@ fn test_static_spendable_outputs_timeout_tx() {
 
        // Settle A's commitment tx on B' chain
        let header = BlockHeader { version: 0x2000_0000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()] }, 0);
+       connect_block(&nodes[1], &Block { header, txdata: vec![commitment_tx[0].clone()] }, 0);
        check_added_monitors!(nodes[1], 1);
        let events = nodes[1].node.get_and_clear_pending_msg_events();
        match events[0] {
@@ -4729,14 +4986,14 @@ fn test_static_spendable_outputs_timeout_tx() {
        check_spends!(node_txn[1], chan_1.3.clone());
        check_spends!(node_txn[2], node_txn[1]);
 
-       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[1], &Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
        expect_payment_failed!(nodes[1], our_payment_hash, true);
 
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 3); // SpendableOutput: remote_commitment_tx.to_remote (*2), timeout_tx.output (*1)
-       check_spends!(spend_txn[2], node_txn[0].clone());
+       assert_eq!(spend_txn.len(), 2); // SpendableOutput: remote_commitment_tx.to_remote, timeout_tx.output
+       check_spends!(spend_txn[1], node_txn[0]);
 }
 
 #[test]
@@ -4757,7 +5014,7 @@ fn test_static_spendable_outputs_justice_tx_revoked_commitment_tx() {
        claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage, 3_000_000);
 
        let  header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 0);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 0);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
 
@@ -4766,9 +5023,9 @@ fn test_static_spendable_outputs_justice_tx_revoked_commitment_tx() {
        assert_eq!(node_txn[0].input.len(), 2);
        check_spends!(node_txn[0], revoked_local_txn[0]);
 
-       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[1], &Block { header: header_1, txdata: vec![node_txn[0].clone()] }, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
        assert_eq!(spend_txn.len(), 1);
@@ -4794,7 +5051,7 @@ fn test_static_spendable_outputs_justice_tx_revoked_htlc_timeout_tx() {
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
        // A will generate HTLC-Timeout from revoked commitment tx
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
 
@@ -4806,29 +5063,39 @@ fn test_static_spendable_outputs_justice_tx_revoked_htlc_timeout_tx() {
        check_spends!(revoked_htlc_txn[1], chan_1.3);
 
        // B will generate justice tx from A's revoked commitment/HTLC tx
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone()] }, 0);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone()] }, 0);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
 
        let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
-       assert_eq!(node_txn.len(), 4); // ChannelMonitor: justice tx on revoked commitment, justice tx on revoked HTLC-timeout, adjusted justice tx, ChannelManager: local commitment tx
-       assert_eq!(node_txn[0].input.len(), 2);
-       check_spends!(node_txn[0], revoked_local_txn[0]);
-       check_spends!(node_txn[1], chan_1.3);
+       assert_eq!(node_txn.len(), 3); // ChannelMonitor: bogus justice tx, justice tx on revoked outputs, ChannelManager: local commitment tx
+       // The first transaction generated is bogus - it spends both outputs of revoked_local_txn[0]
+       // including the one already spent by revoked_htlc_txn[0]. That's OK, we'll spend with valid
+       // transactions next...
+       assert_eq!(node_txn[0].input.len(), 3);
+       check_spends!(node_txn[0], revoked_local_txn[0], revoked_htlc_txn[0]);
+
+       assert_eq!(node_txn[1].input.len(), 2);
+       check_spends!(node_txn[1], revoked_local_txn[0], revoked_htlc_txn[0]);
+       if node_txn[1].input[1].previous_output.txid == revoked_htlc_txn[0].txid() {
+               assert_ne!(node_txn[1].input[0].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+       } else {
+               assert_eq!(node_txn[1].input[0].previous_output.txid, revoked_htlc_txn[0].txid());
+               assert_ne!(node_txn[1].input[1].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+       }
+
        assert_eq!(node_txn[2].input.len(), 1);
-       check_spends!(node_txn[2], revoked_htlc_txn[0]);
-       assert_eq!(node_txn[3].input.len(), 1);
-       check_spends!(node_txn[3], revoked_local_txn[0]);
+       check_spends!(node_txn[2], chan_1.3);
 
-       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header: header_1, txdata: vec![node_txn[0].clone(), node_txn[2].clone()] }, 1);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[1], &Block { header: header_1, txdata: vec![node_txn[1].clone()] }, 1);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
 
        // Check B's ChannelMonitor was able to generate the right spendable output descriptor
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 2);
-       check_spends!(spend_txn[0], node_txn[0]);
-       check_spends!(spend_txn[1], node_txn[2]);
+       assert_eq!(spend_txn.len(), 1);
+       assert_eq!(spend_txn[0].input.len(), 1);
+       check_spends!(spend_txn[0], node_txn[1]);
 }
 
 #[test]
@@ -4846,11 +5113,14 @@ fn test_static_spendable_outputs_justice_tx_revoked_htlc_success_tx() {
        assert_eq!(revoked_local_txn[0].input.len(), 1);
        assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan_1.3.txid());
 
+       // The to-be-revoked commitment tx should have one HTLC and one to_remote output
+       assert_eq!(revoked_local_txn[0].output.len(), 2);
+
        claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage, 3_000_000);
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
        // B will generate HTLC-Success from revoked commitment tx
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
        let revoked_htlc_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
@@ -4860,34 +5130,55 @@ fn test_static_spendable_outputs_justice_tx_revoked_htlc_success_tx() {
        assert_eq!(revoked_htlc_txn[0].input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
        check_spends!(revoked_htlc_txn[0], revoked_local_txn[0]);
 
+       // Check that the unspent (of two) outputs on revoked_local_txn[0] is a P2WPKH:
+       let unspent_local_txn_output = revoked_htlc_txn[0].input[0].previous_output.vout as usize ^ 1;
+       assert_eq!(revoked_local_txn[0].output[unspent_local_txn_output].script_pubkey.len(), 2 + 20); // P2WPKH
+
        // A will generate justice tx from B's revoked commitment/HTLC tx
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone()] }, 1);
+       connect_block(&nodes[0], &Block { header, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone()] }, 1);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
 
        let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
        assert_eq!(node_txn.len(), 3); // ChannelMonitor: justice tx on revoked commitment, justice tx on revoked HTLC-success, ChannelManager: local commitment tx
-       assert_eq!(node_txn[2].input.len(), 1);
-       check_spends!(node_txn[2], revoked_htlc_txn[0]);
 
-       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_1, txdata: vec![node_txn[0].clone(), node_txn[2].clone()] }, 1);
-       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 1, true, header.bitcoin_hash());
+       // The first transaction generated is bogus - it spends both outputs of revoked_local_txn[0]
+       // including the one already spent by revoked_htlc_txn[0]. That's OK, we'll spend with valid
+       // transactions next...
+       assert_eq!(node_txn[0].input.len(), 2);
+       check_spends!(node_txn[0], revoked_local_txn[0], revoked_htlc_txn[0]);
+       if node_txn[0].input[1].previous_output.txid == revoked_htlc_txn[0].txid() {
+               assert_eq!(node_txn[0].input[0].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+       } else {
+               assert_eq!(node_txn[0].input[0].previous_output.txid, revoked_htlc_txn[0].txid());
+               assert_eq!(node_txn[0].input[1].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+       }
+
+       assert_eq!(node_txn[1].input.len(), 1);
+       check_spends!(node_txn[1], revoked_htlc_txn[0]);
+
+       check_spends!(node_txn[2], chan_1.3);
+
+       let header_1 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_1, txdata: vec![node_txn[1].clone()] }, 1);
+       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 1, true, header.block_hash());
+
+       // Note that nodes[0]'s tx_broadcaster is still locked, so if we get here the channelmonitor
+       // didn't try to generate any new transactions.
 
        // Check A's ChannelMonitor was able to generate the right spendable output descriptor
        let spend_txn = check_spendable_outputs!(nodes[0], 1, node_cfgs[0].keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 5); // Duplicated SpendableOutput due to block rescan after revoked htlc output tracking
-       assert_eq!(spend_txn[0], spend_txn[1]);
-       assert_eq!(spend_txn[0], spend_txn[2]);
+       assert_eq!(spend_txn.len(), 2);
+       assert_eq!(spend_txn[0].input.len(), 1);
        check_spends!(spend_txn[0], revoked_local_txn[0]); // spending to_remote output from revoked local tx
-       check_spends!(spend_txn[3], node_txn[0]); // spending justice tx output from revoked local tx htlc received output
-       check_spends!(spend_txn[4], node_txn[2]); // spending justice tx output on htlc success tx
+       assert_ne!(spend_txn[0].input[0].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+       check_spends!(spend_txn[1], node_txn[1]); // spending justice tx output on the htlc success tx
 }
 
 #[test]
 fn test_onchain_to_onchain_claim() {
-       // Test that in case of channel closure, we detect the state of output thanks to
-       // ChainWatchInterface and claim HTLC on downstream peer's remote commitment tx.
+       // Test that in case of channel closure, we detect the state of output and claim HTLC
+       // on downstream peer's remote commitment tx.
        // First, have C claim an HTLC against its own latest commitment transaction.
        // Then, broadcast these to B, which should update the monitor downstream on the A<->B
        // channel.
@@ -4919,7 +5210,7 @@ fn test_onchain_to_onchain_claim() {
        assert_eq!(updates.update_fulfill_htlcs.len(), 1);
        assert!(updates.update_fail_malformed_htlcs.is_empty());
 
-       nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+       connect_block(&nodes[2], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
        check_closed_broadcast!(nodes[2], false);
        check_added_monitors!(nodes[2], 1);
 
@@ -4935,7 +5226,7 @@ fn test_onchain_to_onchain_claim() {
        assert_eq!(c_txn[0].lock_time, 0); // Success tx
 
        // So we broadcast C's commitment tx and HTLC-Success on B's chain, we should successfully be able to extract preimage and update downstream monitor
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![c_txn[1].clone(), c_txn[2].clone()]}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![c_txn[1].clone(), c_txn[2].clone()]}, 1);
        {
                let mut b_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
                // ChannelMonitor: claim tx, ChannelManager: local commitment tx + HTLC-timeout tx
@@ -4945,7 +5236,7 @@ fn test_onchain_to_onchain_claim() {
                assert_eq!(b_txn[2].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
                assert!(b_txn[2].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
                assert_ne!(b_txn[2].lock_time, 0); // Timeout tx
-               check_spends!(b_txn[0], c_txn[1]); // timeout tx on C remote commitment tx, issued by ChannelMonitor, * 2 due to block rescan
+               check_spends!(b_txn[0], c_txn[1]); // timeout tx on C remote commitment tx, issued by ChannelMonitor
                assert_eq!(b_txn[0].input[0].witness.clone().last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
                assert!(b_txn[0].output[0].script_pubkey.is_v0_p2wpkh()); // direct payment
                assert_ne!(b_txn[2].lock_time, 0); // Timeout tx
@@ -4970,7 +5261,7 @@ fn test_onchain_to_onchain_claim() {
        };
        // Broadcast A's commitment tx on B's chain to see if we are able to claim inbound HTLC with our HTLC-Success tx
        let commitment_tx = get_local_commitment_txn!(nodes[0], chan_1.2);
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
        let b_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
        // ChannelMonitor: HTLC-Success tx, ChannelManager: local commitment tx + HTLC-Success tx
        assert_eq!(b_txn.len(), 3);
@@ -5006,7 +5297,7 @@ fn test_duplicate_payment_hash_one_failure_one_success() {
        check_spends!(commitment_txn[0], chan_2.3);
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![commitment_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![commitment_txn[0].clone()] }, 1);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
 
@@ -5029,7 +5320,7 @@ fn test_duplicate_payment_hash_one_failure_one_success() {
        }
 
        nodes[2].node.claim_funds(our_payment_preimage, &None, 900_000);
-       nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![commitment_txn[0].clone()] }, 1);
+       connect_block(&nodes[2], &Block { header, txdata: vec![commitment_txn[0].clone()] }, 1);
        check_added_monitors!(nodes[2], 3);
        let events = nodes[2].node.get_and_clear_pending_msg_events();
        match events[0] {
@@ -5055,8 +5346,8 @@ fn test_duplicate_payment_hash_one_failure_one_success() {
        check_spends!(htlc_success_txn[0], commitment_txn[0]);
        check_spends!(htlc_success_txn[1], commitment_txn[0]);
 
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![htlc_timeout_tx] }, 200);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 200, true, header.bitcoin_hash());
+       connect_block(&nodes[1], &Block { header, txdata: vec![htlc_timeout_tx] }, 200);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 200, true, header.block_hash());
        expect_pending_htlcs_forwardable!(nodes[1]);
        let htlc_updates = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
        assert!(htlc_updates.update_add_htlcs.is_empty());
@@ -5081,7 +5372,7 @@ fn test_duplicate_payment_hash_one_failure_one_success() {
        expect_payment_failed!(nodes[0], duplicate_payment_hash, false);
 
        // Solve 2nd HTLC by broadcasting on B's chain HTLC-Success Tx from C
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![htlc_success_txn[0].clone()] }, 200);
+       connect_block(&nodes[1], &Block { header, txdata: vec![htlc_success_txn[0].clone()] }, 200);
        let updates = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
        assert!(updates.update_add_htlcs.is_empty());
        assert!(updates.update_fail_htlcs.is_empty());
@@ -5121,7 +5412,7 @@ fn test_dynamic_spendable_outputs_local_htlc_success_tx() {
        nodes[1].node.claim_funds(payment_preimage, &None, 9_000_000);
        check_added_monitors!(nodes[1], 1);
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![local_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![local_txn[0].clone()] }, 1);
        check_added_monitors!(nodes[1], 1);
        let events = nodes[1].node.get_and_clear_pending_msg_events();
        match events[0] {
@@ -5140,9 +5431,9 @@ fn test_dynamic_spendable_outputs_local_htlc_success_tx() {
                vec![node_txn[0].clone(), node_txn[2].clone()]
        };
 
-       let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header: header_201, txdata: node_txn.clone() }, 201);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 201, true, header_201.bitcoin_hash());
+       let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[1], &Block { header: header_201, txdata: node_txn.clone() }, 201);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 201, true, header_201.block_hash());
 
        // Verify that B is able to spend its own HTLC-Success tx thanks to spendable output event given back by its ChannelMonitor
        let spend_txn = check_spendable_outputs!(nodes[1], 1, node_cfgs[1].keys_manager, 100000);
@@ -5181,7 +5472,7 @@ fn do_test_fail_backwards_unrevoked_remote_announce(deliver_last_raa: bool, anno
        send_payment(&nodes[1], &[&nodes[2], &nodes[3], &nodes[5]], 500000, 500_000);
        assert_eq!(get_local_commitment_txn!(nodes[3], chan.2)[0].output.len(), 2);
 
-       let ds_dust_limit = nodes[3].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().our_dust_limit_satoshis;
+       let ds_dust_limit = nodes[3].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().holder_dust_limit_satoshis;
        // 0th HTLC:
        let (_, payment_hash_1) = route_payment(&nodes[0], &[&nodes[2], &nodes[3], &nodes[4]], ds_dust_limit*1000); // not added < dust limit + HTLC tx fee
        // 1st HTLC:
@@ -5282,11 +5573,11 @@ fn do_test_fail_backwards_unrevoked_remote_announce(deliver_last_raa: bool, anno
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
        if announce_latest {
-               nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![ds_last_commitment_tx[0].clone()]}, 1);
+               connect_block(&nodes[2], &Block { header, txdata: vec![ds_last_commitment_tx[0].clone()]}, 1);
        } else {
-               nodes[2].block_notifier.block_connected(&Block { header, txdata: vec![ds_prev_commitment_tx[0].clone()]}, 1);
+               connect_block(&nodes[2], &Block { header, txdata: vec![ds_prev_commitment_tx[0].clone()]}, 1);
        }
-       connect_blocks(&nodes[2].block_notifier, ANTI_REORG_DELAY - 1, 1, true,  header.bitcoin_hash());
+       connect_blocks(&nodes[2], ANTI_REORG_DELAY - 1, 1, true,  header.block_hash());
        check_closed_broadcast!(nodes[2], false);
        expect_pending_htlcs_forwardable!(nodes[2]);
        check_added_monitors!(nodes[2], 3);
@@ -5424,7 +5715,7 @@ fn test_dynamic_spendable_outputs_local_htlc_timeout_tx() {
 
        // Timeout HTLC on A's chain and so it can generate a HTLC-Timeout tx
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![local_txn[0].clone()] }, 200);
+       connect_block(&nodes[0], &Block { header, txdata: vec![local_txn[0].clone()] }, 200);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
 
@@ -5436,17 +5727,16 @@ fn test_dynamic_spendable_outputs_local_htlc_timeout_tx() {
                node_txn[0].clone()
        };
 
-       let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_201, txdata: vec![htlc_timeout.clone()] }, 201);
-       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 201, true, header_201.bitcoin_hash());
+       let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_201, txdata: vec![htlc_timeout.clone()] }, 201);
+       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 201, true, header_201.block_hash());
        expect_payment_failed!(nodes[0], our_payment_hash, true);
 
        // Verify that A is able to spend its own HTLC-Timeout tx thanks to spendable output event given back by its ChannelMonitor
        let spend_txn = check_spendable_outputs!(nodes[0], 1, node_cfgs[0].keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 3);
-       assert_eq!(spend_txn[0], spend_txn[1]);
+       assert_eq!(spend_txn.len(), 2);
        check_spends!(spend_txn[0], local_txn[0]);
-       check_spends!(spend_txn[2], htlc_timeout);
+       check_spends!(spend_txn[1], htlc_timeout);
 }
 
 #[test]
@@ -5460,8 +5750,8 @@ fn test_key_derivation_params() {
        // We manually create the node configuration to backup the seed.
        let seed = [42; 32];
        let keys_manager = test_utils::TestKeysInterface::new(&seed, Network::Testnet);
-       let chan_monitor = test_utils::TestChannelMonitor::new(&chanmon_cfgs[0].chain_monitor, &chanmon_cfgs[0].tx_broadcaster, &chanmon_cfgs[0].logger, &chanmon_cfgs[0].fee_estimator);
-       let node = NodeCfg { chain_monitor: &chanmon_cfgs[0].chain_monitor, logger: &chanmon_cfgs[0].logger, tx_broadcaster: &chanmon_cfgs[0].tx_broadcaster, fee_estimator: &chanmon_cfgs[0].fee_estimator, chan_monitor, keys_manager, node_seed: seed };
+       let chain_monitor = test_utils::TestChainMonitor::new(Some(&chanmon_cfgs[0].chain_source), &chanmon_cfgs[0].tx_broadcaster, &chanmon_cfgs[0].logger, &chanmon_cfgs[0].fee_estimator, &chanmon_cfgs[0].persister);
+       let node = NodeCfg { chain_source: &chanmon_cfgs[0].chain_source, logger: &chanmon_cfgs[0].logger, tx_broadcaster: &chanmon_cfgs[0].tx_broadcaster, fee_estimator: &chanmon_cfgs[0].fee_estimator, chain_monitor, keys_manager, node_seed: seed };
        let mut node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
        node_cfgs.remove(0);
        node_cfgs.insert(0, node);
@@ -5494,7 +5784,7 @@ fn test_key_derivation_params() {
 
        // Timeout HTLC on A's chain and so it can generate a HTLC-Timeout tx
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![local_txn_1[0].clone()] }, 200);
+       connect_block(&nodes[0], &Block { header, txdata: vec![local_txn_1[0].clone()] }, 200);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
 
@@ -5506,18 +5796,17 @@ fn test_key_derivation_params() {
                node_txn[0].clone()
        };
 
-       let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_201, txdata: vec![htlc_timeout.clone()] }, 201);
-       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 201, true, header_201.bitcoin_hash());
+       let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_201, txdata: vec![htlc_timeout.clone()] }, 201);
+       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 201, true, header_201.block_hash());
        expect_payment_failed!(nodes[0], our_payment_hash, true);
 
        // Verify that A is able to spend its own HTLC-Timeout tx thanks to spendable output event given back by its ChannelMonitor
        let new_keys_manager = test_utils::TestKeysInterface::new(&seed, Network::Testnet);
        let spend_txn = check_spendable_outputs!(nodes[0], 1, new_keys_manager, 100000);
-       assert_eq!(spend_txn.len(), 3);
-       assert_eq!(spend_txn[0], spend_txn[1]);
+       assert_eq!(spend_txn.len(), 2);
        check_spends!(spend_txn[0], local_txn_1[0]);
-       check_spends!(spend_txn[2], htlc_timeout);
+       check_spends!(spend_txn[1], htlc_timeout);
 }
 
 #[test]
@@ -5533,15 +5822,15 @@ fn test_static_output_closing_tx() {
        let closing_tx = close_channel(&nodes[0], &nodes[1], &chan.2, chan.3, true).2;
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![closing_tx.clone()] }, 0);
-       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 0, true, header.bitcoin_hash());
+       connect_block(&nodes[0], &Block { header, txdata: vec![closing_tx.clone()] }, 0);
+       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 0, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[0], 2, node_cfgs[0].keys_manager, 100000);
        assert_eq!(spend_txn.len(), 1);
        check_spends!(spend_txn[0], closing_tx);
 
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![closing_tx.clone()] }, 0);
-       connect_blocks(&nodes[1].block_notifier, ANTI_REORG_DELAY - 1, 0, true, header.bitcoin_hash());
+       connect_block(&nodes[1], &Block { header, txdata: vec![closing_tx.clone()] }, 0);
+       connect_blocks(&nodes[1], ANTI_REORG_DELAY - 1, 0, true, header.block_hash());
 
        let spend_txn = check_spendable_outputs!(nodes[1], 2, node_cfgs[1].keys_manager, 100000);
        assert_eq!(spend_txn.len(), 1);
@@ -5579,10 +5868,13 @@ fn do_htlc_claim_local_commitment_only(use_dust: bool) {
        nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(), &as_updates.0);
        check_added_monitors!(nodes[1], 1);
 
-       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       let mut block = Block {
+               header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+               txdata: vec![],
+       };
        for i in 1..TEST_FINAL_CLTV - CLTV_CLAIM_BUFFER + CHAN_CONFIRM_DEPTH + 1 {
-               nodes[1].block_notifier.block_connected_checked(&header, i, &Vec::new(), &Vec::new());
-               header.prev_blockhash = header.bitcoin_hash();
+               connect_block(&nodes[1], &block, i);
+               block.header.prev_blockhash = block.block_hash();
        }
        test_txn_broadcast(&nodes[1], &chan, None, if use_dust { HTLCType::NONE } else { HTLCType::SUCCESS });
        check_closed_broadcast!(nodes[1], false);
@@ -5612,8 +5904,8 @@ fn do_htlc_claim_current_remote_commitment_only(use_dust: bool) {
        let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
 
        for i in 1..TEST_FINAL_CLTV + LATENCY_GRACE_PERIOD_BLOCKS + CHAN_CONFIRM_DEPTH + 1 {
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: Vec::new()}, i);
-               header.prev_blockhash = header.bitcoin_hash();
+               connect_block(&nodes[0], &Block { header, txdata: Vec::new()}, i);
+               header.prev_blockhash = header.block_hash();
        }
        test_txn_broadcast(&nodes[0], &chan, None, HTLCType::NONE);
        check_closed_broadcast!(nodes[0], false);
@@ -5653,10 +5945,13 @@ fn do_htlc_claim_previous_remote_commitment_only(use_dust: bool, check_revoke_no
                check_added_monitors!(nodes[0], 1);
        }
 
-       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       let mut block = Block {
+               header: BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 },
+               txdata: vec![],
+       };
        for i in 1..TEST_FINAL_CLTV + LATENCY_GRACE_PERIOD_BLOCKS + CHAN_CONFIRM_DEPTH + 1 {
-               nodes[0].block_notifier.block_connected_checked(&header, i, &Vec::new(), &Vec::new());
-               header.prev_blockhash = header.bitcoin_hash();
+               connect_block(&nodes[0], &block, i);
+               block.header.prev_blockhash = block.block_hash();
        }
        if !check_revoke_no_close {
                test_txn_broadcast(&nodes[0], &chan, None, HTLCType::NONE);
@@ -5695,453 +5990,6 @@ fn htlc_claim_single_commitment_only_b() {
        do_htlc_claim_previous_remote_commitment_only(false, true);
 }
 
-fn run_onion_failure_test<F1,F2>(_name: &str, test_case: u8, nodes: &Vec<Node>, route: &Route, payment_hash: &PaymentHash, callback_msg: F1, callback_node: F2, expected_retryable: bool, expected_error_code: Option<u16>, expected_channel_update: Option<HTLCFailChannelUpdate>)
-       where F1: for <'a> FnMut(&'a mut msgs::UpdateAddHTLC),
-                               F2: FnMut(),
-{
-       run_onion_failure_test_with_fail_intercept(_name, test_case, nodes, route, payment_hash, callback_msg, |_|{}, callback_node, expected_retryable, expected_error_code, expected_channel_update);
-}
-
-// test_case
-// 0: node1 fails backward
-// 1: final node fails backward
-// 2: payment completed but the user rejects the payment
-// 3: final node fails backward (but tamper onion payloads from node0)
-// 100: trigger error in the intermediate node and tamper returning fail_htlc
-// 200: trigger error in the final node and tamper returning fail_htlc
-fn run_onion_failure_test_with_fail_intercept<F1,F2,F3>(_name: &str, test_case: u8, nodes: &Vec<Node>, route: &Route, payment_hash: &PaymentHash, mut callback_msg: F1, mut callback_fail: F2, mut callback_node: F3, expected_retryable: bool, expected_error_code: Option<u16>, expected_channel_update: Option<HTLCFailChannelUpdate>)
-       where F1: for <'a> FnMut(&'a mut msgs::UpdateAddHTLC),
-                               F2: for <'a> FnMut(&'a mut msgs::UpdateFailHTLC),
-                               F3: FnMut(),
-{
-
-       // reset block height
-       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       for ix in 0..nodes.len() {
-               nodes[ix].block_notifier.block_connected_checked(&header, 1, &[], &[]);
-       }
-
-       macro_rules! expect_event {
-               ($node: expr, $event_type: path) => {{
-                       let events = $node.node.get_and_clear_pending_events();
-                       assert_eq!(events.len(), 1);
-                       match events[0] {
-                               $event_type { .. } => {},
-                               _ => panic!("Unexpected event"),
-                       }
-               }}
-       }
-
-       macro_rules! expect_htlc_forward {
-               ($node: expr) => {{
-                       expect_event!($node, Event::PendingHTLCsForwardable);
-                       $node.node.process_pending_htlc_forwards();
-               }}
-       }
-
-       // 0 ~~> 2 send payment
-       nodes[0].node.send_payment(&route, payment_hash.clone(), &None).unwrap();
-       check_added_monitors!(nodes[0], 1);
-       let update_0 = get_htlc_update_msgs!(nodes[0], nodes[1].node.get_our_node_id());
-       // temper update_add (0 => 1)
-       let mut update_add_0 = update_0.update_add_htlcs[0].clone();
-       if test_case == 0 || test_case == 3 || test_case == 100 {
-               callback_msg(&mut update_add_0);
-               callback_node();
-       }
-       // 0 => 1 update_add & CS
-       nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &update_add_0);
-       commitment_signed_dance!(nodes[1], nodes[0], &update_0.commitment_signed, false, true);
-
-       let update_1_0 = match test_case {
-               0|100 => { // intermediate node failure; fail backward to 0
-                       let update_1_0 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
-                       assert!(update_1_0.update_fail_htlcs.len()+update_1_0.update_fail_malformed_htlcs.len()==1 && (update_1_0.update_fail_htlcs.len()==1 || update_1_0.update_fail_malformed_htlcs.len()==1));
-                       update_1_0
-               },
-               1|2|3|200 => { // final node failure; forwarding to 2
-                       assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
-                       // forwarding on 1
-                       if test_case != 200 {
-                               callback_node();
-                       }
-                       expect_htlc_forward!(&nodes[1]);
-
-                       let update_1 = get_htlc_update_msgs!(nodes[1], nodes[2].node.get_our_node_id());
-                       check_added_monitors!(&nodes[1], 1);
-                       assert_eq!(update_1.update_add_htlcs.len(), 1);
-                       // tamper update_add (1 => 2)
-                       let mut update_add_1 = update_1.update_add_htlcs[0].clone();
-                       if test_case != 3 && test_case != 200 {
-                               callback_msg(&mut update_add_1);
-                       }
-
-                       // 1 => 2
-                       nodes[2].node.handle_update_add_htlc(&nodes[1].node.get_our_node_id(), &update_add_1);
-                       commitment_signed_dance!(nodes[2], nodes[1], update_1.commitment_signed, false, true);
-
-                       if test_case == 2 || test_case == 200 {
-                               expect_htlc_forward!(&nodes[2]);
-                               expect_event!(&nodes[2], Event::PaymentReceived);
-                               callback_node();
-                               expect_pending_htlcs_forwardable!(nodes[2]);
-                       }
-
-                       let update_2_1 = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
-                       if test_case == 2 || test_case == 200 {
-                               check_added_monitors!(&nodes[2], 1);
-                       }
-                       assert!(update_2_1.update_fail_htlcs.len() == 1);
-
-                       let mut fail_msg = update_2_1.update_fail_htlcs[0].clone();
-                       if test_case == 200 {
-                               callback_fail(&mut fail_msg);
-                       }
-
-                       // 2 => 1
-                       nodes[1].node.handle_update_fail_htlc(&nodes[2].node.get_our_node_id(), &fail_msg);
-                       commitment_signed_dance!(nodes[1], nodes[2], update_2_1.commitment_signed, true);
-
-                       // backward fail on 1
-                       let update_1_0 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
-                       assert!(update_1_0.update_fail_htlcs.len() == 1);
-                       update_1_0
-               },
-               _ => unreachable!(),
-       };
-
-       // 1 => 0 commitment_signed_dance
-       if update_1_0.update_fail_htlcs.len() > 0 {
-               let mut fail_msg = update_1_0.update_fail_htlcs[0].clone();
-               if test_case == 100 {
-                       callback_fail(&mut fail_msg);
-               }
-               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &fail_msg);
-       } else {
-               nodes[0].node.handle_update_fail_malformed_htlc(&nodes[1].node.get_our_node_id(), &update_1_0.update_fail_malformed_htlcs[0]);
-       };
-
-       commitment_signed_dance!(nodes[0], nodes[1], update_1_0.commitment_signed, false, true);
-
-       let events = nodes[0].node.get_and_clear_pending_events();
-       assert_eq!(events.len(), 1);
-       if let &Event::PaymentFailed { payment_hash:_, ref rejected_by_dest, ref error_code, error_data: _ } = &events[0] {
-               assert_eq!(*rejected_by_dest, !expected_retryable);
-               assert_eq!(*error_code, expected_error_code);
-       } else {
-               panic!("Uexpected event");
-       }
-
-       let events = nodes[0].node.get_and_clear_pending_msg_events();
-       if expected_channel_update.is_some() {
-               assert_eq!(events.len(), 1);
-               match events[0] {
-                       MessageSendEvent::PaymentFailureNetworkUpdate { ref update } => {
-                               match update {
-                                       &HTLCFailChannelUpdate::ChannelUpdateMessage { .. } => {
-                                               if let HTLCFailChannelUpdate::ChannelUpdateMessage { .. } = expected_channel_update.unwrap() {} else {
-                                                       panic!("channel_update not found!");
-                                               }
-                                       },
-                                       &HTLCFailChannelUpdate::ChannelClosed { ref short_channel_id, ref is_permanent } => {
-                                               if let HTLCFailChannelUpdate::ChannelClosed { short_channel_id: ref expected_short_channel_id, is_permanent: ref expected_is_permanent } = expected_channel_update.unwrap() {
-                                                       assert!(*short_channel_id == *expected_short_channel_id);
-                                                       assert!(*is_permanent == *expected_is_permanent);
-                                               } else {
-                                                       panic!("Unexpected message event");
-                                               }
-                                       },
-                                       &HTLCFailChannelUpdate::NodeFailure { ref node_id, ref is_permanent } => {
-                                               if let HTLCFailChannelUpdate::NodeFailure { node_id: ref expected_node_id, is_permanent: ref expected_is_permanent } = expected_channel_update.unwrap() {
-                                                       assert!(*node_id == *expected_node_id);
-                                                       assert!(*is_permanent == *expected_is_permanent);
-                                               } else {
-                                                       panic!("Unexpected message event");
-                                               }
-                                       },
-                               }
-                       },
-                       _ => panic!("Unexpected message event"),
-               }
-       } else {
-               assert_eq!(events.len(), 0);
-       }
-}
-
-impl msgs::ChannelUpdate {
-       fn dummy() -> msgs::ChannelUpdate {
-               use bitcoin::secp256k1::ffi::Signature as FFISignature;
-               use bitcoin::secp256k1::Signature;
-               msgs::ChannelUpdate {
-                       signature: Signature::from(FFISignature::new()),
-                       contents: msgs::UnsignedChannelUpdate {
-                               chain_hash: BlockHash::hash(&vec![0u8][..]),
-                               short_channel_id: 0,
-                               timestamp: 0,
-                               flags: 0,
-                               cltv_expiry_delta: 0,
-                               htlc_minimum_msat: 0,
-                               fee_base_msat: 0,
-                               fee_proportional_millionths: 0,
-                               excess_data: vec![],
-                       }
-               }
-       }
-}
-
-struct BogusOnionHopData {
-       data: Vec<u8>
-}
-impl BogusOnionHopData {
-       fn new(orig: msgs::OnionHopData) -> Self {
-               Self { data: orig.encode() }
-       }
-}
-impl Writeable for BogusOnionHopData {
-       fn write<W: Writer>(&self, writer: &mut W) -> Result<(), io::Error> {
-               writer.write_all(&self.data[..])
-       }
-}
-
-#[test]
-fn test_onion_failure() {
-       use ln::msgs::ChannelUpdate;
-       use ln::channelmanager::CLTV_FAR_FAR_AWAY;
-       use bitcoin::secp256k1;
-
-       const BADONION: u16 = 0x8000;
-       const PERM: u16 = 0x4000;
-       const NODE: u16 = 0x2000;
-       const UPDATE: u16 = 0x1000;
-
-       let chanmon_cfgs = create_chanmon_cfgs(3);
-       let node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
-       let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &[None, None, None]);
-       let mut nodes = create_network(3, &node_cfgs, &node_chanmgrs);
-       for node in nodes.iter() {
-               *node.keys_manager.override_session_priv.lock().unwrap() = Some(SecretKey::from_slice(&[3; 32]).unwrap());
-       }
-       let channels = [create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known()), create_announced_chan_between_nodes(&nodes, 1, 2, InitFeatures::known(), InitFeatures::known())];
-       let (_, payment_hash) = get_payment_preimage_hash!(nodes[0]);
-       let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
-       let logger = test_utils::TestLogger::new();
-       let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[2].node.get_our_node_id(), None, &Vec::new(), 40000, TEST_FINAL_CLTV, &logger).unwrap();
-       // positve case
-       send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 40000, 40_000);
-
-       // intermediate node failure
-       run_onion_failure_test("invalid_realm", 0, &nodes, &route, &payment_hash, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let cur_height = nodes[0].node.latest_block_height.load(Ordering::Acquire) as u32 + 1;
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               let (mut onion_payloads, _htlc_msat, _htlc_cltv) = onion_utils::build_onion_payloads(&route.paths[0], 40000, &None, cur_height).unwrap();
-               let mut new_payloads = Vec::new();
-               for payload in onion_payloads.drain(..) {
-                       new_payloads.push(BogusOnionHopData::new(payload));
-               }
-               // break the first (non-final) hop payload by swapping the realm (0) byte for a byte
-               // describing a length-1 TLV payload, which is obviously bogus.
-               new_payloads[0].data[0] = 1;
-               msg.onion_routing_packet = onion_utils::construct_onion_packet_bogus_hopdata(new_payloads, onion_keys, [0; 32], &payment_hash);
-       }, ||{}, true, Some(PERM|22), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));//XXX incremented channels idx here
-
-       // final node failure
-       run_onion_failure_test("invalid_realm", 3, &nodes, &route, &payment_hash, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let cur_height = nodes[0].node.latest_block_height.load(Ordering::Acquire) as u32 + 1;
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               let (mut onion_payloads, _htlc_msat, _htlc_cltv) = onion_utils::build_onion_payloads(&route.paths[0], 40000, &None, cur_height).unwrap();
-               let mut new_payloads = Vec::new();
-               for payload in onion_payloads.drain(..) {
-                       new_payloads.push(BogusOnionHopData::new(payload));
-               }
-               // break the last-hop payload by swapping the realm (0) byte for a byte describing a
-               // length-1 TLV payload, which is obviously bogus.
-               new_payloads[1].data[0] = 1;
-               msg.onion_routing_packet = onion_utils::construct_onion_packet_bogus_hopdata(new_payloads, onion_keys, [0; 32], &payment_hash);
-       }, ||{}, false, Some(PERM|22), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));
-
-       // the following three with run_onion_failure_test_with_fail_intercept() test only the origin node
-       // receiving simulated fail messages
-       // intermediate node failure
-       run_onion_failure_test_with_fail_intercept("temporary_node_failure", 100, &nodes, &route, &payment_hash, |msg| {
-               // trigger error
-               msg.amount_msat -= 1;
-       }, |msg| {
-               // and tamper returning error message
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], NODE|2, &[0;0]);
-       }, ||{}, true, Some(NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.paths[0][0].pubkey, is_permanent: false}));
-
-       // final node failure
-       run_onion_failure_test_with_fail_intercept("temporary_node_failure", 200, &nodes, &route, &payment_hash, |_msg| {}, |msg| {
-               // and tamper returning error message
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[1].shared_secret[..], NODE|2, &[0;0]);
-       }, ||{
-               nodes[2].node.fail_htlc_backwards(&payment_hash, &None);
-       }, true, Some(NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.paths[0][1].pubkey, is_permanent: false}));
-
-       // intermediate node failure
-       run_onion_failure_test_with_fail_intercept("permanent_node_failure", 100, &nodes, &route, &payment_hash, |msg| {
-               msg.amount_msat -= 1;
-       }, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|NODE|2, &[0;0]);
-       }, ||{}, true, Some(PERM|NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.paths[0][0].pubkey, is_permanent: true}));
-
-       // final node failure
-       run_onion_failure_test_with_fail_intercept("permanent_node_failure", 200, &nodes, &route, &payment_hash, |_msg| {}, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[1].shared_secret[..], PERM|NODE|2, &[0;0]);
-       }, ||{
-               nodes[2].node.fail_htlc_backwards(&payment_hash, &None);
-       }, false, Some(PERM|NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.paths[0][1].pubkey, is_permanent: true}));
-
-       // intermediate node failure
-       run_onion_failure_test_with_fail_intercept("required_node_feature_missing", 100, &nodes, &route, &payment_hash, |msg| {
-               msg.amount_msat -= 1;
-       }, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|NODE|3, &[0;0]);
-       }, ||{
-               nodes[2].node.fail_htlc_backwards(&payment_hash, &None);
-       }, true, Some(PERM|NODE|3), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.paths[0][0].pubkey, is_permanent: true}));
-
-       // final node failure
-       run_onion_failure_test_with_fail_intercept("required_node_feature_missing", 200, &nodes, &route, &payment_hash, |_msg| {}, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[1].shared_secret[..], PERM|NODE|3, &[0;0]);
-       }, ||{
-               nodes[2].node.fail_htlc_backwards(&payment_hash, &None);
-       }, false, Some(PERM|NODE|3), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.paths[0][1].pubkey, is_permanent: true}));
-
-       run_onion_failure_test("invalid_onion_version", 0, &nodes, &route, &payment_hash, |msg| { msg.onion_routing_packet.version = 1; }, ||{}, true,
-               Some(BADONION|PERM|4), None);
-
-       run_onion_failure_test("invalid_onion_hmac", 0, &nodes, &route, &payment_hash, |msg| { msg.onion_routing_packet.hmac = [3; 32]; }, ||{}, true,
-               Some(BADONION|PERM|5), None);
-
-       run_onion_failure_test("invalid_onion_key", 0, &nodes, &route, &payment_hash, |msg| { msg.onion_routing_packet.public_key = Err(secp256k1::Error::InvalidPublicKey);}, ||{}, true,
-               Some(BADONION|PERM|6), None);
-
-       run_onion_failure_test_with_fail_intercept("temporary_channel_failure", 100, &nodes, &route, &payment_hash, |msg| {
-               msg.amount_msat -= 1;
-       }, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], UPDATE|7, &ChannelUpdate::dummy().encode_with_len()[..]);
-       }, ||{}, true, Some(UPDATE|7), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
-
-       run_onion_failure_test_with_fail_intercept("permanent_channel_failure", 100, &nodes, &route, &payment_hash, |msg| {
-               msg.amount_msat -= 1;
-       }, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|8, &[0;0]);
-               // short_channel_id from the processing node
-       }, ||{}, true, Some(PERM|8), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));
-
-       run_onion_failure_test_with_fail_intercept("required_channel_feature_missing", 100, &nodes, &route, &payment_hash, |msg| {
-               msg.amount_msat -= 1;
-       }, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               msg.reason = onion_utils::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|9, &[0;0]);
-               // short_channel_id from the processing node
-       }, ||{}, true, Some(PERM|9), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));
-
-       let mut bogus_route = route.clone();
-       bogus_route.paths[0][1].short_channel_id -= 1;
-       run_onion_failure_test("unknown_next_peer", 0, &nodes, &bogus_route, &payment_hash, |_| {}, ||{}, true, Some(PERM|10),
-         Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: bogus_route.paths[0][1].short_channel_id, is_permanent:true}));
-
-       let amt_to_forward = nodes[1].node.channel_state.lock().unwrap().by_id.get(&channels[1].2).unwrap().get_their_htlc_minimum_msat() - 1;
-       let mut bogus_route = route.clone();
-       let route_len = bogus_route.paths[0].len();
-       bogus_route.paths[0][route_len-1].fee_msat = amt_to_forward;
-       run_onion_failure_test("amount_below_minimum", 0, &nodes, &bogus_route, &payment_hash, |_| {}, ||{}, true, Some(UPDATE|11), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
-
-       //TODO: with new config API, we will be able to generate both valid and
-       //invalid channel_update cases.
-       run_onion_failure_test("fee_insufficient", 0, &nodes, &route, &payment_hash, |msg| {
-               msg.amount_msat -= 1;
-       }, || {}, true, Some(UPDATE|12), Some(msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id: channels[0].0.contents.short_channel_id, is_permanent: true}));
-
-       run_onion_failure_test("incorrect_cltv_expiry", 0, &nodes, &route, &payment_hash, |msg| {
-               // need to violate: cltv_expiry - cltv_expiry_delta >= outgoing_cltv_value
-               msg.cltv_expiry -= 1;
-       }, || {}, true, Some(UPDATE|13), Some(msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id: channels[0].0.contents.short_channel_id, is_permanent: true}));
-
-       run_onion_failure_test("expiry_too_soon", 0, &nodes, &route, &payment_hash, |msg| {
-               let height = msg.cltv_expiry - CLTV_CLAIM_BUFFER - LATENCY_GRACE_PERIOD_BLOCKS + 1;
-               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-
-               nodes[1].block_notifier.block_connected_checked(&header, height, &[], &[]);
-       }, ||{}, true, Some(UPDATE|14), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
-
-       run_onion_failure_test("unknown_payment_hash", 2, &nodes, &route, &payment_hash, |_| {}, || {
-               nodes[2].node.fail_htlc_backwards(&payment_hash, &None);
-       }, false, Some(PERM|15), None);
-
-       run_onion_failure_test("final_expiry_too_soon", 1, &nodes, &route, &payment_hash, |msg| {
-               let height = msg.cltv_expiry - CLTV_CLAIM_BUFFER - LATENCY_GRACE_PERIOD_BLOCKS + 1;
-               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-
-               nodes[2].block_notifier.block_connected_checked(&header, height, &[], &[]);
-       }, || {}, true, Some(17), None);
-
-       run_onion_failure_test("final_incorrect_cltv_expiry", 1, &nodes, &route, &payment_hash, |_| {}, || {
-               for (_, pending_forwards) in nodes[1].node.channel_state.lock().unwrap().forward_htlcs.iter_mut() {
-                       for f in pending_forwards.iter_mut() {
-                               match f {
-                                       &mut HTLCForwardInfo::AddHTLC { ref mut forward_info, .. } =>
-                                               forward_info.outgoing_cltv_value += 1,
-                                       _ => {},
-                               }
-                       }
-               }
-       }, true, Some(18), None);
-
-       run_onion_failure_test("final_incorrect_htlc_amount", 1, &nodes, &route, &payment_hash, |_| {}, || {
-               // violate amt_to_forward > msg.amount_msat
-               for (_, pending_forwards) in nodes[1].node.channel_state.lock().unwrap().forward_htlcs.iter_mut() {
-                       for f in pending_forwards.iter_mut() {
-                               match f {
-                                       &mut HTLCForwardInfo::AddHTLC { ref mut forward_info, .. } =>
-                                               forward_info.amt_to_forward -= 1,
-                                       _ => {},
-                               }
-                       }
-               }
-       }, true, Some(19), None);
-
-       run_onion_failure_test("channel_disabled", 0, &nodes, &route, &payment_hash, |_| {}, || {
-               // disconnect event to the channel between nodes[1] ~ nodes[2]
-               nodes[1].node.peer_disconnected(&nodes[2].node.get_our_node_id(), false);
-               nodes[2].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
-       }, true, Some(UPDATE|20), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
-       reconnect_nodes(&nodes[1], &nodes[2], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
-
-       run_onion_failure_test("expiry_too_far", 0, &nodes, &route, &payment_hash, |msg| {
-               let session_priv = SecretKey::from_slice(&[3; 32]).unwrap();
-               let mut route = route.clone();
-               let height = 1;
-               route.paths[0][1].cltv_expiry_delta += CLTV_FAR_FAR_AWAY + route.paths[0][0].cltv_expiry_delta + 1;
-               let onion_keys = onion_utils::construct_onion_keys(&Secp256k1::new(), &route.paths[0], &session_priv).unwrap();
-               let (onion_payloads, _, htlc_cltv) = onion_utils::build_onion_payloads(&route.paths[0], 40000, &None, height).unwrap();
-               let onion_packet = onion_utils::construct_onion_packet(onion_payloads, onion_keys, [0; 32], &payment_hash);
-               msg.cltv_expiry = htlc_cltv;
-               msg.onion_routing_packet = onion_packet;
-       }, ||{}, true, Some(21), None);
-}
-
 #[test]
 #[should_panic]
 fn bolt2_open_channel_sending_node_checks_part1() { //This test needs to be on its own as we are catching a panic
@@ -6199,7 +6047,7 @@ fn bolt2_open_channel_sending_node_checks_part2() {
        assert!(node0_to_1_send_open_channel.to_self_delay==BREAKDOWN_TIMEOUT);
 
        // BOLT #2 spec: Sending node must ensure the chain_hash value identifies the chain it wishes to open the channel within.
-       let chain_hash=genesis_block(Network::Testnet).header.bitcoin_hash();
+       let chain_hash=genesis_block(Network::Testnet).header.block_hash();
        assert_eq!(node0_to_1_send_open_channel.chain_hash,chain_hash);
 
        // BOLT #2 spec: Sending node must set funding_pubkey, revocation_basepoint, htlc_basepoint, payment_basepoint, and delayed_payment_basepoint to valid DER-encoded, compressed, secp256k1 pubkeys.
@@ -6210,29 +6058,365 @@ fn bolt2_open_channel_sending_node_checks_part2() {
        assert!(PublicKey::from_slice(&node0_to_1_send_open_channel.delayed_payment_basepoint.serialize()).is_ok());
 }
 
-// BOLT 2 Requirements for the Sender when constructing and sending an update_add_htlc message.
-// BOLT 2 Requirement: MUST NOT offer amount_msat it cannot pay for in the remote commitment transaction at the current feerate_per_kw (see "Updating Fees") while maintaining its channel reserve.
-//TODO: I don't believe this is explicitly enforced when sending an HTLC but as the Fee aspect of the BOLT specs is in flux leaving this as a TODO.
-
+// Test that if we fail to send an HTLC that is being freed from the holding cell, and the HTLC
+// originated from our node, its failure is surfaced to the user. We trigger this failure to
+// free the HTLC by increasing our fee while the HTLC is in the holding cell such that the HTLC
+// is no longer affordable once it's freed.
 #[test]
-fn test_update_add_htlc_bolt2_sender_value_below_minimum_msat() {
-       //BOLT2 Requirement: MUST NOT offer amount_msat below the receiving node's htlc_minimum_msat (same validation check catches both of these)
+fn test_fail_holding_cell_htlc_upon_free() {
        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]);
        let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
-       let _chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let logger = test_utils::TestLogger::new();
 
-       let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
+       // First nodes[0] generates an update_fee, setting the channel's
+       // pending_update_fee.
+       nodes[0].node.update_fee(chan.2, get_feerate!(nodes[0], chan.2) + 20).unwrap();
+       check_added_monitors!(nodes[0], 1);
+
+       let events = nodes[0].node.get_and_clear_pending_msg_events();
+       assert_eq!(events.len(), 1);
+       let (update_msg, commitment_signed) = match events[0] {
+               MessageSendEvent::UpdateHTLCs { updates: msgs::CommitmentUpdate { ref update_fee, ref commitment_signed, .. }, .. } => {
+                       (update_fee.as_ref(), commitment_signed)
+               },
+               _ => panic!("Unexpected event"),
+       };
+
+       nodes[1].node.handle_update_fee(&nodes[0].node.get_our_node_id(), update_msg.unwrap());
+
+       let mut chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       let channel_reserve = chan_stat.channel_reserve_msat;
+       let feerate = get_feerate!(nodes[0], chan.2);
+
+       // 2* and +1 HTLCs on the commit tx fee calculation for the fee spike reserve.
+       let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
+       let max_can_send = 5000000 - channel_reserve - 2*commit_tx_fee_msat(feerate, 1 + 1);
+       let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
+       let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], max_can_send, TEST_FINAL_CLTV, &logger).unwrap();
+
+       // Send a payment which passes reserve checks but gets stuck in the holding cell.
+       nodes[0].node.send_payment(&route, our_payment_hash, &None).unwrap();
+       chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       assert_eq!(chan_stat.holding_cell_outbound_amount_msat, max_can_send);
+
+       // Flush the pending fee update.
+       nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), commitment_signed);
+       let (as_revoke_and_ack, _) = get_revoke_commit_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+       check_added_monitors!(nodes[1], 1);
+       nodes[0].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &as_revoke_and_ack);
+       check_added_monitors!(nodes[0], 1);
+
+       // Upon receipt of the RAA, there will be an attempt to resend the holding cell
+       // HTLC, but now that the fee has been raised the payment will now fail, causing
+       // us to surface its failure to the user.
+       chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       assert_eq!(chan_stat.holding_cell_outbound_amount_msat, 0);
+       nodes[0].logger.assert_log("lightning::ln::channel".to_string(), "Freeing holding cell with 1 HTLC updates".to_string(), 1);
+       let failure_log = format!("Failed to send HTLC with payment_hash {} due to Cannot send value that would put our balance under counterparty-announced channel reserve value ({})", log_bytes!(our_payment_hash.0), chan_stat.channel_reserve_msat);
+       nodes[0].logger.assert_log("lightning::ln::channel".to_string(), failure_log.to_string(), 1);
+
+       // Check that the payment failed to be sent out.
+       let events = nodes[0].node.get_and_clear_pending_events();
+       assert_eq!(events.len(), 1);
+       match &events[0] {
+               &Event::PaymentFailed { ref payment_hash, ref rejected_by_dest, ref error_code, ref error_data } => {
+                       assert_eq!(our_payment_hash.clone(), *payment_hash);
+                       assert_eq!(*rejected_by_dest, false);
+                       assert_eq!(*error_code, None);
+                       assert_eq!(*error_data, None);
+               },
+               _ => panic!("Unexpected event"),
+       }
+}
+
+// Test that if multiple HTLCs are released from the holding cell and one is
+// valid but the other is no longer valid upon release, the valid HTLC can be
+// successfully completed while the other one fails as expected.
+#[test]
+fn test_free_and_fail_holding_cell_htlcs() {
+       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]);
+       let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+       let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let logger = test_utils::TestLogger::new();
+
+       // First nodes[0] generates an update_fee, setting the channel's
+       // pending_update_fee.
+       nodes[0].node.update_fee(chan.2, get_feerate!(nodes[0], chan.2) + 200).unwrap();
+       check_added_monitors!(nodes[0], 1);
+
+       let events = nodes[0].node.get_and_clear_pending_msg_events();
+       assert_eq!(events.len(), 1);
+       let (update_msg, commitment_signed) = match events[0] {
+               MessageSendEvent::UpdateHTLCs { updates: msgs::CommitmentUpdate { ref update_fee, ref commitment_signed, .. }, .. } => {
+                       (update_fee.as_ref(), commitment_signed)
+               },
+               _ => panic!("Unexpected event"),
+       };
+
+       nodes[1].node.handle_update_fee(&nodes[0].node.get_our_node_id(), update_msg.unwrap());
+
+       let mut chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       let channel_reserve = chan_stat.channel_reserve_msat;
+       let feerate = get_feerate!(nodes[0], chan.2);
+
+       // 2* and +1 HTLCs on the commit tx fee calculation for the fee spike reserve.
+       let (payment_preimage_1, payment_hash_1) = get_payment_preimage_hash!(nodes[0]);
+       let amt_1 = 20000;
+       let (_, payment_hash_2) = get_payment_preimage_hash!(nodes[0]);
+       let amt_2 = 5000000 - channel_reserve - 2*commit_tx_fee_msat(feerate, 2 + 1) - amt_1;
+       let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
+       let route_1 = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], amt_1, TEST_FINAL_CLTV, &logger).unwrap();
+       let route_2 = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], amt_2, TEST_FINAL_CLTV, &logger).unwrap();
+
+       // Send 2 payments which pass reserve checks but get stuck in the holding cell.
+       nodes[0].node.send_payment(&route_1, payment_hash_1, &None).unwrap();
+       chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       assert_eq!(chan_stat.holding_cell_outbound_amount_msat, amt_1);
+       nodes[0].node.send_payment(&route_2, payment_hash_2, &None).unwrap();
+       chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       assert_eq!(chan_stat.holding_cell_outbound_amount_msat, amt_1 + amt_2);
+
+       // Flush the pending fee update.
+       nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), commitment_signed);
+       let (revoke_and_ack, commitment_signed) = get_revoke_commit_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+       check_added_monitors!(nodes[1], 1);
+       nodes[0].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &revoke_and_ack);
+       nodes[0].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), &commitment_signed);
+       check_added_monitors!(nodes[0], 2);
+
+       // Upon receipt of the RAA, there will be an attempt to resend the holding cell HTLCs,
+       // but now that the fee has been raised the second payment will now fail, causing us
+       // to surface its failure to the user. The first payment should succeed.
+       chan_stat = get_channel_value_stat!(nodes[0], chan.2);
+       assert_eq!(chan_stat.holding_cell_outbound_amount_msat, 0);
+       nodes[0].logger.assert_log("lightning::ln::channel".to_string(), "Freeing holding cell with 2 HTLC updates".to_string(), 1);
+       let failure_log = format!("Failed to send HTLC with payment_hash {} due to Cannot send value that would put our balance under counterparty-announced channel reserve value ({})", log_bytes!(payment_hash_2.0), chan_stat.channel_reserve_msat);
+       nodes[0].logger.assert_log("lightning::ln::channel".to_string(), failure_log.to_string(), 1);
+
+       // Check that the second payment failed to be sent out.
+       let events = nodes[0].node.get_and_clear_pending_events();
+       assert_eq!(events.len(), 1);
+       match &events[0] {
+               &Event::PaymentFailed { ref payment_hash, ref rejected_by_dest, ref error_code, ref error_data } => {
+                       assert_eq!(payment_hash_2.clone(), *payment_hash);
+                       assert_eq!(*rejected_by_dest, false);
+                       assert_eq!(*error_code, None);
+                       assert_eq!(*error_data, None);
+               },
+               _ => panic!("Unexpected event"),
+       }
+
+       // Complete the first payment and the RAA from the fee update.
+       let (payment_event, send_raa_event) = {
+               let mut msgs = nodes[0].node.get_and_clear_pending_msg_events();
+               assert_eq!(msgs.len(), 2);
+               (SendEvent::from_event(msgs.remove(0)), msgs.remove(0))
+       };
+       let raa = match send_raa_event {
+               MessageSendEvent::SendRevokeAndACK { msg, .. } => msg,
+               _ => panic!("Unexpected event"),
+       };
+       nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(), &raa);
+       check_added_monitors!(nodes[1], 1);
+       nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &payment_event.msgs[0]);
+       commitment_signed_dance!(nodes[1], nodes[0], payment_event.commitment_msg, false);
+       let events = nodes[1].node.get_and_clear_pending_events();
+       assert_eq!(events.len(), 1);
+       match events[0] {
+               Event::PendingHTLCsForwardable { .. } => {},
+               _ => panic!("Unexpected event"),
+       }
+       nodes[1].node.process_pending_htlc_forwards();
+       let events = nodes[1].node.get_and_clear_pending_events();
+       assert_eq!(events.len(), 1);
+       match events[0] {
+               Event::PaymentReceived { .. } => {},
+               _ => panic!("Unexpected event"),
+       }
+       nodes[1].node.claim_funds(payment_preimage_1, &None, amt_1);
+       check_added_monitors!(nodes[1], 1);
+       let update_msgs = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+       nodes[0].node.handle_update_fulfill_htlc(&nodes[1].node.get_our_node_id(), &update_msgs.update_fulfill_htlcs[0]);
+       commitment_signed_dance!(nodes[0], nodes[1], update_msgs.commitment_signed, false, true);
+       let events = nodes[0].node.get_and_clear_pending_events();
+       assert_eq!(events.len(), 1);
+       match events[0] {
+               Event::PaymentSent { ref payment_preimage } => {
+                       assert_eq!(*payment_preimage, payment_preimage_1);
+               }
+               _ => panic!("Unexpected event"),
+       }
+}
+
+// Test that if we fail to forward an HTLC that is being freed from the holding cell that the
+// HTLC is failed backwards. We trigger this failure to forward the freed HTLC by increasing
+// our fee while the HTLC is in the holding cell such that the HTLC is no longer affordable
+// once it's freed.
+#[test]
+fn test_fail_holding_cell_htlc_upon_free_multihop() {
+       let chanmon_cfgs = create_chanmon_cfgs(3);
+       let node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
+       let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &[None, None, None]);
+       let mut nodes = create_network(3, &node_cfgs, &node_chanmgrs);
+       let chan_0_1 = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let chan_1_2 = create_announced_chan_between_nodes_with_value(&nodes, 1, 2, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+       let logger = test_utils::TestLogger::new();
+
+       // First nodes[1] generates an update_fee, setting the channel's
+       // pending_update_fee.
+       nodes[1].node.update_fee(chan_1_2.2, get_feerate!(nodes[1], chan_1_2.2) + 20).unwrap();
+       check_added_monitors!(nodes[1], 1);
+
+       let events = nodes[1].node.get_and_clear_pending_msg_events();
+       assert_eq!(events.len(), 1);
+       let (update_msg, commitment_signed) = match events[0] {
+               MessageSendEvent::UpdateHTLCs { updates: msgs::CommitmentUpdate { ref update_fee, ref commitment_signed, .. }, .. } => {
+                       (update_fee.as_ref(), commitment_signed)
+               },
+               _ => panic!("Unexpected event"),
+       };
+
+       nodes[2].node.handle_update_fee(&nodes[1].node.get_our_node_id(), update_msg.unwrap());
+
+       let mut chan_stat = get_channel_value_stat!(nodes[0], chan_0_1.2);
+       let channel_reserve = chan_stat.channel_reserve_msat;
+       let feerate = get_feerate!(nodes[0], chan_0_1.2);
+
+       // Send a payment which passes reserve checks but gets stuck in the holding cell.
+       let feemsat = 239;
+       let total_routing_fee_msat = (nodes.len() - 2) as u64 * feemsat;
+       let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
+       let max_can_send = 5000000 - channel_reserve - 2*commit_tx_fee_msat(feerate, 1 + 1) - total_routing_fee_msat;
+       let payment_event = {
+               let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
+               let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[2].node.get_our_node_id(), None, &[], max_can_send, TEST_FINAL_CLTV, &logger).unwrap();
+               nodes[0].node.send_payment(&route, our_payment_hash, &None).unwrap();
+               check_added_monitors!(nodes[0], 1);
+
+               let mut events = nodes[0].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+
+               SendEvent::from_event(events.remove(0))
+       };
+       nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &payment_event.msgs[0]);
+       check_added_monitors!(nodes[1], 0);
+       commitment_signed_dance!(nodes[1], nodes[0], payment_event.commitment_msg, false);
+       expect_pending_htlcs_forwardable!(nodes[1]);
+
+       chan_stat = get_channel_value_stat!(nodes[1], chan_1_2.2);
+       assert_eq!(chan_stat.holding_cell_outbound_amount_msat, max_can_send);
+
+       // Flush the pending fee update.
+       nodes[2].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), commitment_signed);
+       let (raa, commitment_signed) = get_revoke_commit_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+       check_added_monitors!(nodes[2], 1);
+       nodes[1].node.handle_revoke_and_ack(&nodes[2].node.get_our_node_id(), &raa);
+       nodes[1].node.handle_commitment_signed(&nodes[2].node.get_our_node_id(), &commitment_signed);
+       check_added_monitors!(nodes[1], 2);
+
+       // A final RAA message is generated to finalize the fee update.
+       let events = nodes[1].node.get_and_clear_pending_msg_events();
+       assert_eq!(events.len(), 1);
+
+       let raa_msg = match &events[0] {
+               &MessageSendEvent::SendRevokeAndACK { ref msg, .. } => {
+                       msg.clone()
+               },
+               _ => panic!("Unexpected event"),
+       };
+
+       nodes[2].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &raa_msg);
+       check_added_monitors!(nodes[2], 1);
+       assert!(nodes[2].node.get_and_clear_pending_msg_events().is_empty());
+
+       // nodes[1]'s ChannelManager will now signal that we have HTLC forwards to process.
+       let process_htlc_forwards_event = nodes[1].node.get_and_clear_pending_events();
+       assert_eq!(process_htlc_forwards_event.len(), 1);
+       match &process_htlc_forwards_event[0] {
+               &Event::PendingHTLCsForwardable { .. } => {},
+               _ => panic!("Unexpected event"),
+       }
+
+       // In response, we call ChannelManager's process_pending_htlc_forwards
+       nodes[1].node.process_pending_htlc_forwards();
+       check_added_monitors!(nodes[1], 1);
+
+       // This causes the HTLC to be failed backwards.
+       let fail_event = nodes[1].node.get_and_clear_pending_msg_events();
+       assert_eq!(fail_event.len(), 1);
+       let (fail_msg, commitment_signed) = match &fail_event[0] {
+               &MessageSendEvent::UpdateHTLCs { ref updates, .. } => {
+                       assert_eq!(updates.update_add_htlcs.len(), 0);
+                       assert_eq!(updates.update_fulfill_htlcs.len(), 0);
+                       assert_eq!(updates.update_fail_malformed_htlcs.len(), 0);
+                       assert_eq!(updates.update_fail_htlcs.len(), 1);
+                       (updates.update_fail_htlcs[0].clone(), updates.commitment_signed.clone())
+               },
+               _ => panic!("Unexpected event"),
+       };
+
+       // Pass the failure messages back to nodes[0].
+       nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &fail_msg);
+       nodes[0].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), &commitment_signed);
+
+       // Complete the HTLC failure+removal process.
+       let (raa, commitment_signed) = get_revoke_commit_msgs!(nodes[0], nodes[1].node.get_our_node_id());
+       check_added_monitors!(nodes[0], 1);
+       nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(), &raa);
+       nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), &commitment_signed);
+       check_added_monitors!(nodes[1], 2);
+       let final_raa_event = nodes[1].node.get_and_clear_pending_msg_events();
+       assert_eq!(final_raa_event.len(), 1);
+       let raa = match &final_raa_event[0] {
+               &MessageSendEvent::SendRevokeAndACK { ref msg, .. } => msg.clone(),
+               _ => panic!("Unexpected event"),
+       };
+       nodes[0].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &raa);
+       let fail_msg_event = nodes[0].node.get_and_clear_pending_msg_events();
+       assert_eq!(fail_msg_event.len(), 1);
+       match &fail_msg_event[0] {
+               &MessageSendEvent::PaymentFailureNetworkUpdate { .. } => {},
+               _ => panic!("Unexpected event"),
+       }
+       let failure_event = nodes[0].node.get_and_clear_pending_events();
+       assert_eq!(failure_event.len(), 1);
+       match &failure_event[0] {
+               &Event::PaymentFailed { rejected_by_dest, .. } => {
+                       assert!(!rejected_by_dest);
+               },
+               _ => panic!("Unexpected event"),
+       }
+       check_added_monitors!(nodes[0], 1);
+}
+
+// BOLT 2 Requirements for the Sender when constructing and sending an update_add_htlc message.
+// BOLT 2 Requirement: MUST NOT offer amount_msat it cannot pay for in the remote commitment transaction at the current feerate_per_kw (see "Updating Fees") while maintaining its channel reserve.
+//TODO: I don't believe this is explicitly enforced when sending an HTLC but as the Fee aspect of the BOLT specs is in flux leaving this as a TODO.
+
+#[test]
+fn test_update_add_htlc_bolt2_sender_value_below_minimum_msat() {
+       //BOLT2 Requirement: MUST NOT offer amount_msat below the receiving node's htlc_minimum_msat (same validation check catches both of these)
+       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]);
+       let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+       let _chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 95000000, InitFeatures::known(), InitFeatures::known());
+
+       let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
        let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
        let logger = test_utils::TestLogger::new();
        let mut route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], 100000, TEST_FINAL_CLTV, &logger).unwrap();
        route.paths[0][0].fee_msat = 100;
 
-       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-               assert_eq!(err, "Cannot send less than their minimum HTLC value"));
+       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+               assert!(regex::Regex::new(r"Cannot send less than their minimum HTLC value \(\d+\)").unwrap().is_match(err)));
        assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send less than their minimum HTLC value".to_string(), 1);
+       nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send less than their minimum HTLC value".to_string(), 1);
 }
 
 #[test]
@@ -6249,11 +6433,11 @@ fn test_update_add_htlc_bolt2_sender_zero_value_msat() {
        let logger = test_utils::TestLogger::new();
        let mut route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], 100000, TEST_FINAL_CLTV, &logger).unwrap();
        route.paths[0][0].fee_msat = 0;
-       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
+       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
                assert_eq!(err, "Cannot send 0-msat HTLC"));
 
        assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send 0-msat HTLC".to_string(), 1);
+       nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send 0-msat HTLC".to_string(), 1);
 }
 
 #[test]
@@ -6295,8 +6479,8 @@ fn test_update_add_htlc_bolt2_sender_cltv_expiry_too_high() {
 
        let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
        let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], 100000000, 500000001, &logger).unwrap();
-       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::RouteError { err },
-               assert_eq!(err, "Channel CLTV overflowed?!"));
+       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::RouteError { ref err },
+               assert_eq!(err, &"Channel CLTV overflowed?"));
 }
 
 #[test]
@@ -6309,7 +6493,7 @@ fn test_update_add_htlc_bolt2_sender_exceed_max_htlc_num_and_htlc_id_increment()
        let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None]);
        let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
        let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 1000000, 0, InitFeatures::known(), InitFeatures::known());
-       let max_accepted_htlcs = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().their_max_accepted_htlcs as u64;
+       let max_accepted_htlcs = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().counterparty_max_accepted_htlcs as u64;
 
        let logger = test_utils::TestLogger::new();
        for i in 0..max_accepted_htlcs {
@@ -6339,11 +6523,11 @@ fn test_update_add_htlc_bolt2_sender_exceed_max_htlc_num_and_htlc_id_increment()
        let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
        let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
        let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], 100000, TEST_FINAL_CLTV, &logger).unwrap();
-       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-               assert_eq!(err, "Cannot push more than their max accepted HTLCs"));
+       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+               assert!(regex::Regex::new(r"Cannot push more than their max accepted HTLCs \(\d+\)").unwrap().is_match(err)));
 
        assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot push more than their max accepted HTLCs".to_string(), 1);
+       nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot push more than their max accepted HTLCs".to_string(), 1);
 }
 
 #[test]
@@ -6355,7 +6539,7 @@ fn test_update_add_htlc_bolt2_sender_exceed_max_htlc_value_in_flight() {
        let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
        let channel_value = 100000;
        let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, channel_value, 0, InitFeatures::known(), InitFeatures::known());
-       let max_in_flight = get_channel_value_stat!(nodes[0], chan.2).their_max_htlc_value_in_flight_msat;
+       let max_in_flight = get_channel_value_stat!(nodes[0], chan.2).counterparty_max_htlc_value_in_flight_msat;
 
        send_payment(&nodes[0], &vec!(&nodes[1])[..], max_in_flight, max_in_flight);
 
@@ -6363,11 +6547,11 @@ fn test_update_add_htlc_bolt2_sender_exceed_max_htlc_value_in_flight() {
        let net_graph_msg_handler = &nodes[0].net_graph_msg_handler;
        let logger = test_utils::TestLogger::new();
        let route = get_route(&nodes[0].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[1].node.get_our_node_id(), None, &[], max_in_flight+1, TEST_FINAL_CLTV, &logger).unwrap();
-       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { err },
-               assert_eq!(err, "Cannot send value that would put us over the max HTLC value in flight our peer will accept"));
+       unwrap_send_err!(nodes[0].node.send_payment(&route, our_payment_hash, &None), true, APIError::ChannelUnavailable { ref err },
+               assert!(regex::Regex::new(r"Cannot send value that would put us over the max HTLC value in flight our peer will accept \(\d+\)").unwrap().is_match(err)));
 
        assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
-       nodes[0].logger.assert_log("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us over the max HTLC value in flight our peer will accept".to_string(), 1);
+       nodes[0].logger.assert_log_contains("lightning::ln::channelmanager".to_string(), "Cannot send value that would put us over the max HTLC value in flight our peer will accept".to_string(), 1);
 
        send_payment(&nodes[0], &[&nodes[1]], max_in_flight, max_in_flight);
 }
@@ -6385,7 +6569,7 @@ fn test_update_add_htlc_bolt2_receiver_check_amount_received_more_than_min() {
        {
                let chan_lock = nodes[0].node.channel_state.lock().unwrap();
                let channel = chan_lock.by_id.get(&chan.2).unwrap();
-               htlc_minimum_msat = channel.get_our_htlc_minimum_msat();
+               htlc_minimum_msat = channel.get_holder_htlc_minimum_msat();
        }
 
        let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
@@ -6399,7 +6583,7 @@ fn test_update_add_htlc_bolt2_receiver_check_amount_received_more_than_min() {
        nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &updates.update_add_htlcs[0]);
        assert!(nodes[1].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[1], true).unwrap();
-       assert_eq!(err_msg.data, "Remote side tried to send less than our minimum HTLC value");
+       assert!(regex::Regex::new(r"Remote side tried to send less than our minimum HTLC value\. Lower limit: \(\d+\)\. Actual: \(\d+\)").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[1], 1);
 }
 
@@ -6479,7 +6663,7 @@ fn test_update_add_htlc_bolt2_receiver_check_max_htlc_limit() {
 
        assert!(nodes[1].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[1], true).unwrap();
-       assert_eq!(err_msg.data, "Remote tried to push more than our max accepted HTLCs");
+       assert!(regex::Regex::new(r"Remote tried to push more than our max accepted HTLCs \(\d+\)").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[1], 1);
 }
 
@@ -6499,12 +6683,12 @@ fn test_update_add_htlc_bolt2_receiver_check_max_in_flight_msat() {
        nodes[0].node.send_payment(&route, our_payment_hash, &None).unwrap();
        check_added_monitors!(nodes[0], 1);
        let mut updates = get_htlc_update_msgs!(nodes[0], nodes[1].node.get_our_node_id());
-       updates.update_add_htlcs[0].amount_msat = get_channel_value_stat!(nodes[1], chan.2).their_max_htlc_value_in_flight_msat + 1;
+       updates.update_add_htlcs[0].amount_msat = get_channel_value_stat!(nodes[1], chan.2).counterparty_max_htlc_value_in_flight_msat + 1;
        nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &updates.update_add_htlcs[0]);
 
        assert!(nodes[1].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[1], true).unwrap();
-       assert_eq!(err_msg.data,"Remote HTLC add would put them over our max HTLC value");
+       assert!(regex::Regex::new("Remote HTLC add would put them over our max HTLC value").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[1], 1);
 }
 
@@ -6578,7 +6762,7 @@ fn test_update_add_htlc_bolt2_receiver_check_repeated_id_ignore() {
 
        assert!(nodes[1].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[1], true).unwrap();
-       assert_eq!(err_msg.data, "Remote skipped HTLC ID");
+       assert!(regex::Regex::new(r"Remote skipped HTLC ID \(skipped ID: \d+\)").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[1], 1);
 }
 
@@ -6611,7 +6795,7 @@ fn test_update_fulfill_htlc_bolt2_update_fulfill_htlc_before_commitment() {
 
        assert!(nodes[0].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[0], true).unwrap();
-       assert_eq!(err_msg.data, "Remote tried to fulfill/fail HTLC before it had been committed");
+       assert!(regex::Regex::new(r"Remote tried to fulfill/fail HTLC \(\d+\) before it had been committed").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[0], 1);
 }
 
@@ -6644,7 +6828,7 @@ fn test_update_fulfill_htlc_bolt2_update_fail_htlc_before_commitment() {
 
        assert!(nodes[0].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[0], true).unwrap();
-       assert_eq!(err_msg.data, "Remote tried to fulfill/fail HTLC before it had been committed");
+       assert!(regex::Regex::new(r"Remote tried to fulfill/fail HTLC \(\d+\) before it had been committed").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[0], 1);
 }
 
@@ -6678,7 +6862,7 @@ fn test_update_fulfill_htlc_bolt2_update_fail_malformed_htlc_before_commitment()
 
        assert!(nodes[0].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[0], true).unwrap();
-       assert_eq!(err_msg.data, "Remote tried to fulfill/fail HTLC before it had been committed");
+       assert!(regex::Regex::new(r"Remote tried to fulfill/fail HTLC \(\d+\) before it had been committed").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[0], 1);
 }
 
@@ -6760,7 +6944,7 @@ fn test_update_fulfill_htlc_bolt2_wrong_preimage() {
 
        assert!(nodes[0].node.list_channels().is_empty());
        let err_msg = check_closed_broadcast!(nodes[0], true).unwrap();
-       assert_eq!(err_msg.data, "Remote tried to fulfill HTLC with an incorrect preimage");
+       assert!(regex::Regex::new(r"Remote tried to fulfill HTLC \(\d+\) with an incorrect preimage").unwrap().is_match(err_msg.data.as_str()));
        check_added_monitors!(nodes[0], 1);
 }
 
@@ -6903,7 +7087,7 @@ fn do_test_failure_delay_dust_htlc_local_commitment(announce_latest: bool) {
        let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
        let chan =create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known());
 
-       let bs_dust_limit = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().our_dust_limit_satoshis;
+       let bs_dust_limit = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().holder_dust_limit_satoshis;
 
        // We route 2 dust-HTLCs between A and B
        let (_, payment_hash_1) = route_payment(&nodes[0], &[&nodes[1]], bs_dust_limit*1000);
@@ -6946,16 +7130,16 @@ fn do_test_failure_delay_dust_htlc_local_commitment(announce_latest: bool) {
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
 
        if announce_latest {
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![as_last_commitment_tx[0].clone()]}, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![as_last_commitment_tx[0].clone()]}, 1);
        } else {
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![as_prev_commitment_tx[0].clone()]}, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![as_prev_commitment_tx[0].clone()]}, 1);
        }
 
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
 
        assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
-       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 1, true,  header.bitcoin_hash());
+       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 1, true,  header.block_hash());
        let events = nodes[0].node.get_and_clear_pending_events();
        // Only 2 PaymentFailed events should show up, over-dust HTLC has to be failed by timeout tx
        assert_eq!(events.len(), 2);
@@ -6981,60 +7165,6 @@ fn test_failure_delay_dust_htlc_local_commitment() {
        do_test_failure_delay_dust_htlc_local_commitment(false);
 }
 
-#[test]
-fn test_no_failure_dust_htlc_local_commitment() {
-       // Transaction filters for failing back dust htlc based on local commitment txn infos has been
-       // prone to error, we test here that a dummy transaction don't fail them.
-
-       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]);
-       let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
-       let chan = create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known());
-
-       // Rebalance a bit
-       send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000, 8_000_000);
-
-       let as_dust_limit = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().our_dust_limit_satoshis;
-       let bs_dust_limit = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().our_dust_limit_satoshis;
-
-       // We route 2 dust-HTLCs between A and B
-       let (preimage_1, _) = route_payment(&nodes[0], &[&nodes[1]], bs_dust_limit*1000);
-       let (preimage_2, _) = route_payment(&nodes[1], &[&nodes[0]], as_dust_limit*1000);
-
-       // Build a dummy invalid transaction trying to spend a commitment tx
-       let input = TxIn {
-               previous_output: BitcoinOutPoint { txid: chan.3.txid(), vout: 0 },
-               script_sig: Script::new(),
-               sequence: 0,
-               witness: Vec::new(),
-       };
-
-       let outp = TxOut {
-               script_pubkey: Builder::new().push_opcode(opcodes::all::OP_RETURN).into_script(),
-               value: 10000,
-       };
-
-       let dummy_tx = Transaction {
-               version: 2,
-               lock_time: 0,
-               input: vec![input],
-               output: vec![outp]
-       };
-
-       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].chan_monitor.simple_monitor.block_connected(&header, 1, &[&dummy_tx], &[1;1]);
-       assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
-       assert_eq!(nodes[0].node.get_and_clear_pending_msg_events().len(), 0);
-       // We broadcast a few more block to check everything is all right
-       connect_blocks(&nodes[0].block_notifier, 20, 1, true,  header.bitcoin_hash());
-       assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
-       assert_eq!(nodes[0].node.get_and_clear_pending_msg_events().len(), 0);
-
-       claim_payment(&nodes[0], &vec!(&nodes[1])[..], preimage_1, bs_dust_limit*1000);
-       claim_payment(&nodes[1], &vec!(&nodes[0])[..], preimage_2, as_dust_limit*1000);
-}
-
 fn do_test_sweep_outbound_htlc_failure_update(revoked: bool, local: bool) {
        // Outbound HTLC-failure updates must be cancelled if we get a reorg before we reach ANTI_REORG_DELAY.
        // Broadcast of revoked remote commitment tx, trigger failure-update of dust/non-dust HTLCs
@@ -7049,7 +7179,7 @@ fn do_test_sweep_outbound_htlc_failure_update(revoked: bool, local: bool) {
        let nodes = create_network(3, &node_cfgs, &node_chanmgrs);
        let chan = create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known());
 
-       let bs_dust_limit = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().our_dust_limit_satoshis;
+       let bs_dust_limit = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().holder_dust_limit_satoshis;
 
        let (_payment_preimage_1, dust_hash) = route_payment(&nodes[0], &[&nodes[1]], bs_dust_limit*1000);
        let (_payment_preimage_2, non_dust_hash) = route_payment(&nodes[0], &[&nodes[1]], 1000000);
@@ -7067,38 +7197,38 @@ fn do_test_sweep_outbound_htlc_failure_update(revoked: bool, local: bool) {
        let mut timeout_tx = Vec::new();
        if local {
                // We fail dust-HTLC 1 by broadcast of local commitment tx
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![as_commitment_tx[0].clone()]}, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![as_commitment_tx[0].clone()]}, 1);
                check_closed_broadcast!(nodes[0], false);
                check_added_monitors!(nodes[0], 1);
                assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
                timeout_tx.push(nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap()[0].clone());
-               let parent_hash  = connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 2, true, header.bitcoin_hash());
+               let parent_hash  = connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 2, true, header.block_hash());
                expect_payment_failed!(nodes[0], dust_hash, true);
                assert_eq!(timeout_tx[0].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
                // We fail non-dust-HTLC 2 by broadcast of local HTLC-timeout tx on local commitment tx
                let header_2 = BlockHeader { version: 0x20000000, prev_blockhash: parent_hash, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
-               nodes[0].block_notifier.block_connected(&Block { header: header_2, txdata: vec![timeout_tx[0].clone()]}, 7);
-               let header_3 = BlockHeader { version: 0x20000000, prev_blockhash: header_2.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 8, true, header_3.bitcoin_hash());
+               connect_block(&nodes[0], &Block { header: header_2, txdata: vec![timeout_tx[0].clone()]}, 7);
+               let header_3 = BlockHeader { version: 0x20000000, prev_blockhash: header_2.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 8, true, header_3.block_hash());
                expect_payment_failed!(nodes[0], non_dust_hash, true);
        } else {
                // We fail dust-HTLC 1 by broadcast of remote commitment tx. If revoked, fail also non-dust HTLC
-               nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![bs_commitment_tx[0].clone()]}, 1);
+               connect_block(&nodes[0], &Block { header, txdata: vec![bs_commitment_tx[0].clone()]}, 1);
                check_closed_broadcast!(nodes[0], false);
                check_added_monitors!(nodes[0], 1);
                assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
                timeout_tx.push(nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap()[0].clone());
-               let parent_hash  = connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 2, true, header.bitcoin_hash());
+               let parent_hash  = connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 2, true, header.block_hash());
                let header_2 = BlockHeader { version: 0x20000000, prev_blockhash: parent_hash, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                if !revoked {
                        expect_payment_failed!(nodes[0], dust_hash, true);
                        assert_eq!(timeout_tx[0].input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
                        // We fail non-dust-HTLC 2 by broadcast of local timeout tx on remote commitment tx
-                       nodes[0].block_notifier.block_connected(&Block { header: header_2, txdata: vec![timeout_tx[0].clone()]}, 7);
+                       connect_block(&nodes[0], &Block { header: header_2, txdata: vec![timeout_tx[0].clone()]}, 7);
                        assert_eq!(nodes[0].node.get_and_clear_pending_events().len(), 0);
-                       let header_3 = BlockHeader { version: 0x20000000, prev_blockhash: header_2.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-                       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 8, true, header_3.bitcoin_hash());
+                       let header_3 = BlockHeader { version: 0x20000000, prev_blockhash: header_2.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 8, true, header_3.block_hash());
                        expect_payment_failed!(nodes[0], non_dust_hash, true);
                } else {
                        // If revoked, both dust & non-dust HTLCs should have been failed after ANTI_REORG_DELAY confs of revoked
@@ -7154,7 +7284,7 @@ fn test_upfront_shutdown_script() {
        node_0_shutdown.scriptpubkey = Builder::new().push_opcode(opcodes::all::OP_RETURN).into_script().to_p2sh();
        // Test we enforce upfront_scriptpbukey if by providing a diffrent one at closing that  we disconnect peer
        nodes[2].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_shutdown);
-       assert_eq!(check_closed_broadcast!(nodes[2], true).unwrap().data, "Got shutdown request with a scriptpubkey which did not match their previous scriptpubkey");
+    assert!(regex::Regex::new(r"Got shutdown request with a scriptpubkey \([A-Fa-f0-9]+\) which did not match their previous scriptpubkey.").unwrap().is_match(check_closed_broadcast!(nodes[2], true).unwrap().data.as_str()));
        check_added_monitors!(nodes[2], 1);
 
        // We test that in case of peer committing upfront to a script, if it doesn't change at closing, we sign
@@ -7235,7 +7365,7 @@ fn test_user_configurable_csv_delay() {
        let keys_manager: Arc<KeysInterface<ChanKeySigner = EnforcingChannelKeys>> = Arc::new(test_utils::TestKeysInterface::new(&nodes[0].node_seed, Network::Testnet));
        if let Err(error) = Channel::new_outbound(&&test_utils::TestFeeEstimator { sat_per_kw: 253 }, &keys_manager, nodes[1].node.get_our_node_id(), 1000000, 1000000, 0, &low_our_to_self_config) {
                match error {
-                       APIError::APIMisuseError { err } => { assert_eq!(err, "Configured with an unreasonable our_to_self_delay putting user funds at risks"); },
+                       APIError::APIMisuseError { err } => { assert!(regex::Regex::new(r"Configured with an unreasonable our_to_self_delay \(\d+\) putting user funds at risks").unwrap().is_match(err.as_str())); },
                        _ => panic!("Unexpected event"),
                }
        } else { assert!(false) }
@@ -7246,7 +7376,7 @@ fn test_user_configurable_csv_delay() {
        open_channel.to_self_delay = 200;
        if let Err(error) = Channel::new_from_req(&&test_utils::TestFeeEstimator { sat_per_kw: 253 }, &keys_manager, nodes[1].node.get_our_node_id(), InitFeatures::known(), &open_channel, 0, &low_our_to_self_config) {
                match error {
-                       ChannelError::Close(err) => { assert_eq!(err, "Configured with an unreasonable our_to_self_delay putting user funds at risks"); },
+                       ChannelError::Close(err) => { assert!(regex::Regex::new(r"Configured with an unreasonable our_to_self_delay \(\d+\) putting user funds at risks").unwrap().is_match(err.as_str()));  },
                        _ => panic!("Unexpected event"),
                }
        } else { assert!(false); }
@@ -7260,7 +7390,7 @@ fn test_user_configurable_csv_delay() {
        if let MessageSendEvent::HandleError { ref action, .. } = nodes[0].node.get_and_clear_pending_msg_events()[0] {
                match action {
                        &ErrorAction::SendErrorMessage { ref msg } => {
-                               assert_eq!(msg.data,"They wanted our payments to be delayed by a needlessly long period");
+                               assert!(regex::Regex::new(r"They wanted our payments to be delayed by a needlessly long period\. Upper limit: \d+\. Actual: \d+").unwrap().is_match(msg.data.as_str()));
                        },
                        _ => { assert!(false); }
                }
@@ -7272,7 +7402,7 @@ fn test_user_configurable_csv_delay() {
        open_channel.to_self_delay = 200;
        if let Err(error) = Channel::new_from_req(&&test_utils::TestFeeEstimator { sat_per_kw: 253 }, &keys_manager, nodes[1].node.get_our_node_id(), InitFeatures::known(), &open_channel, 0, &high_their_to_self_config) {
                match error {
-                       ChannelError::Close(err) => { assert_eq!(err, "They wanted our payments to be delayed by a needlessly long period"); },
+                       ChannelError::Close(err) => { assert!(regex::Regex::new(r"They wanted our payments to be delayed by a needlessly long period\. Upper limit: \d+\. Actual: \d+").unwrap().is_match(err.as_str())); },
                        _ => panic!("Unexpected event"),
                }
        } else { assert!(false); }
@@ -7285,10 +7415,11 @@ fn test_data_loss_protect() {
        // * we close channel in case of detecting other being fallen behind
        // * we are able to claim our own outputs thanks to to_remote being static
        let keys_manager;
+       let persister;
        let logger;
        let fee_estimator;
        let tx_broadcaster;
-       let chain_monitor;
+       let chain_source;
        let monitor;
        let node_state_0;
        let chanmon_cfgs = create_chanmon_cfgs(2);
@@ -7300,8 +7431,8 @@ fn test_data_loss_protect() {
 
        // Cache node A state before any channel update
        let previous_node_state = nodes[0].node.encode();
-       let mut previous_chan_monitor_state = test_utils::TestVecWriter(Vec::new());
-       nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap().iter().next().unwrap().1.write_for_disk(&mut previous_chan_monitor_state).unwrap();
+       let mut previous_chain_monitor_state = test_utils::TestVecWriter(Vec::new());
+       nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap().iter().next().unwrap().1.serialize_for_disk(&mut previous_chain_monitor_state).unwrap();
 
        send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000, 8_000_000);
        send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000, 8_000_000);
@@ -7311,33 +7442,30 @@ fn test_data_loss_protect() {
 
        // Restore node A from previous state
        logger = test_utils::TestLogger::with_id(format!("node {}", 0));
-       let mut chan_monitor = <(BlockHash, ChannelMonitor<EnforcingChannelKeys>)>::read(&mut ::std::io::Cursor::new(previous_chan_monitor_state.0)).unwrap().1;
-       chain_monitor = ChainWatchInterfaceUtil::new(Network::Testnet);
+       let mut chain_monitor = <(BlockHash, ChannelMonitor<EnforcingChannelKeys>)>::read(&mut ::std::io::Cursor::new(previous_chain_monitor_state.0)).unwrap().1;
+       chain_source = test_utils::TestChainSource::new(Network::Testnet);
        tx_broadcaster = test_utils::TestBroadcaster{txn_broadcasted: Mutex::new(Vec::new())};
        fee_estimator = test_utils::TestFeeEstimator { sat_per_kw: 253 };
        keys_manager = test_utils::TestKeysInterface::new(&nodes[0].node_seed, Network::Testnet);
-       monitor = test_utils::TestChannelMonitor::new(&chain_monitor, &tx_broadcaster, &logger, &fee_estimator);
+       persister = test_utils::TestPersister::new();
+       monitor = test_utils::TestChainMonitor::new(Some(&chain_source), &tx_broadcaster, &logger, &fee_estimator, &persister);
        node_state_0 = {
                let mut channel_monitors = HashMap::new();
-               channel_monitors.insert(OutPoint { txid: chan.3.txid(), index: 0 }, &mut chan_monitor);
-               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChannelMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut ::std::io::Cursor::new(previous_node_state), ChannelManagerReadArgs {
+               channel_monitors.insert(OutPoint { txid: chan.3.txid(), index: 0 }, &mut chain_monitor);
+               <(BlockHash, ChannelManager<EnforcingChannelKeys, &test_utils::TestChainMonitor, &test_utils::TestBroadcaster, &test_utils::TestKeysInterface, &test_utils::TestFeeEstimator, &test_utils::TestLogger>)>::read(&mut ::std::io::Cursor::new(previous_node_state), ChannelManagerReadArgs {
                        keys_manager: &keys_manager,
                        fee_estimator: &fee_estimator,
-                       monitor: &monitor,
+                       chain_monitor: &monitor,
                        logger: &logger,
                        tx_broadcaster: &tx_broadcaster,
                        default_config: UserConfig::default(),
-                       channel_monitors: &mut channel_monitors,
+                       channel_monitors,
                }).unwrap().1
        };
        nodes[0].node = &node_state_0;
-       assert!(monitor.add_monitor(OutPoint { txid: chan.3.txid(), index: 0 }, chan_monitor).is_ok());
-       nodes[0].chan_monitor = &monitor;
-       nodes[0].chain_monitor = &chain_monitor;
-
-       nodes[0].block_notifier = BlockNotifier::new(&nodes[0].chain_monitor);
-       nodes[0].block_notifier.register_listener(&nodes[0].chan_monitor.simple_monitor);
-       nodes[0].block_notifier.register_listener(nodes[0].node);
+       assert!(monitor.watch_channel(OutPoint { txid: chan.3.txid(), index: 0 }, chain_monitor).is_ok());
+       nodes[0].chain_monitor = &monitor;
+       nodes[0].chain_source = &chain_source;
 
        check_added_monitors!(nodes[0], 1);
 
@@ -7385,8 +7513,8 @@ fn test_data_loss_protect() {
        check_spends!(node_txn[0], chan.3);
        assert_eq!(node_txn[0].output.len(), 2);
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![node_txn[0].clone()]}, 0);
-       connect_blocks(&nodes[0].block_notifier, ANTI_REORG_DELAY - 1, 0, true, header.bitcoin_hash());
+       connect_block(&nodes[0], &Block { header, txdata: vec![node_txn[0].clone()]}, 0);
+       connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 0, true, header.block_hash());
        let spend_txn = check_spendable_outputs!(nodes[0], 1, node_cfgs[0].keys_manager, 100000);
        assert_eq!(spend_txn.len(), 1);
        check_spends!(spend_txn[0], node_txn[0]);
@@ -7534,12 +7662,12 @@ fn test_bump_penalty_txn_on_revoked_commitment() {
        }
 
        // Connect blocks to change height_timer range to see if we use right soonest_timelock
-       let header_114 = connect_blocks(&nodes[1].block_notifier, 114, 0, false, Default::default());
+       let header_114 = connect_blocks(&nodes[1], 114, 0, false, Default::default());
 
        // Actually revoke tx by claiming a HTLC
        claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage, 3_000_000);
        let header = BlockHeader { version: 0x20000000, prev_blockhash: header_114, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_txn[0].clone()] }, 115);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_txn[0].clone()] }, 115);
        check_added_monitors!(nodes[1], 1);
 
        // One or more justice tx should have been broadcast, check it
@@ -7558,7 +7686,7 @@ fn test_bump_penalty_txn_on_revoked_commitment() {
        };
 
        // After exhaustion of height timer, a new bumped justice tx should have been broadcast, check it
-       let header = connect_blocks(&nodes[1].block_notifier, 3, 115,  true, header.bitcoin_hash());
+       let header = connect_blocks(&nodes[1], 3, 115,  true, header.block_hash());
        let mut penalty_2 = penalty_1;
        let mut feerate_2 = 0;
        {
@@ -7581,7 +7709,7 @@ fn test_bump_penalty_txn_on_revoked_commitment() {
        assert_ne!(feerate_2, 0);
 
        // After exhaustion of height timer for a 2nd time, a new bumped justice tx should have been broadcast, check it
-       connect_blocks(&nodes[1].block_notifier, 3, 118, true, header);
+       connect_blocks(&nodes[1], 3, 118, true, header);
        let penalty_3;
        let mut feerate_3 = 0;
        {
@@ -7631,7 +7759,7 @@ fn test_bump_penalty_txn_on_revoked_htlcs() {
 
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
        // B will generate both revoked HTLC-timeout/HTLC-preimage txn from revoked commitment tx
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
 
@@ -7642,21 +7770,23 @@ fn test_bump_penalty_txn_on_revoked_htlcs() {
                check_spends!(revoked_htlc_txn[0], revoked_local_txn[0]);
                assert_eq!(revoked_htlc_txn[1].input.len(), 1);
                assert_eq!(revoked_htlc_txn[1].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               assert_eq!(revoked_htlc_txn[1].output.len(), 1);
                check_spends!(revoked_htlc_txn[1], revoked_local_txn[0]);
        } else if revoked_htlc_txn[1].input[0].witness.last().unwrap().len() == ACCEPTED_HTLC_SCRIPT_WEIGHT {
                assert_eq!(revoked_htlc_txn[1].input.len(), 1);
                check_spends!(revoked_htlc_txn[1], revoked_local_txn[0]);
                assert_eq!(revoked_htlc_txn[0].input.len(), 1);
                assert_eq!(revoked_htlc_txn[0].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               assert_eq!(revoked_htlc_txn[0].output.len(), 1);
                check_spends!(revoked_htlc_txn[0], revoked_local_txn[0]);
        }
 
        // Broadcast set of revoked txn on A
-       let header_128 = connect_blocks(&nodes[0].block_notifier, 128, 0, true, header.bitcoin_hash());
+       let header_128 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_128, txdata: vec![revoked_local_txn[0].clone()] }, 128);
        expect_pending_htlcs_forwardable_ignore!(nodes[0]);
-
-       let header_129 = BlockHeader { version: 0x20000000, prev_blockhash: header_128, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_129, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone(), revoked_htlc_txn[1].clone()] }, 129);
+       let header_129 = BlockHeader { version: 0x20000000, prev_blockhash: header_128.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_129, txdata: vec![revoked_htlc_txn[0].clone(), revoked_htlc_txn[1].clone()] }, 129);
        let first;
        let feerate_1;
        let penalty_txn;
@@ -7664,34 +7794,73 @@ fn test_bump_penalty_txn_on_revoked_htlcs() {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 5); // 3 penalty txn on revoked commitment tx + A commitment tx + 1 penalty tnx on revoked HTLC txn
                // Verify claim tx are spending revoked HTLC txn
+
+               // node_txn 0-2 each spend a separate revoked output from revoked_local_txn[0]
+               // Note that node_txn[0] and node_txn[1] are bogus - they double spend the revoked_htlc_txn
+               // which are included in the same block (they are broadcasted because we scan the
+               // transactions linearly and generate claims as we go, they likely should be removed in the
+               // future).
+               assert_eq!(node_txn[0].input.len(), 1);
+               check_spends!(node_txn[0], revoked_local_txn[0]);
+               assert_eq!(node_txn[1].input.len(), 1);
+               check_spends!(node_txn[1], revoked_local_txn[0]);
+               assert_eq!(node_txn[2].input.len(), 1);
+               check_spends!(node_txn[2], revoked_local_txn[0]);
+
+               // Each of the three justice transactions claim a separate (single) output of the three
+               // available, which we check here:
+               assert_ne!(node_txn[0].input[0].previous_output, node_txn[1].input[0].previous_output);
+               assert_ne!(node_txn[0].input[0].previous_output, node_txn[2].input[0].previous_output);
+               assert_ne!(node_txn[1].input[0].previous_output, node_txn[2].input[0].previous_output);
+
+               assert_eq!(node_txn[0].input[0].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+               assert_eq!(node_txn[1].input[0].previous_output, revoked_htlc_txn[1].input[0].previous_output);
+
+               // node_txn[3] is the local commitment tx broadcast just because (and somewhat in case of
+               // reorgs, though its not clear its ever worth broadcasting conflicting txn like this when
+               // a remote commitment tx has already been confirmed).
+               check_spends!(node_txn[3], chan.3);
+
+               // node_txn[4] spends the revoked outputs from the revoked_htlc_txn (which only have one
+               // output, checked above).
                assert_eq!(node_txn[4].input.len(), 2);
                assert_eq!(node_txn[4].output.len(), 1);
                check_spends!(node_txn[4], revoked_htlc_txn[0], revoked_htlc_txn[1]);
+
                first = node_txn[4].txid();
                // Store both feerates for later comparison
                let fee_1 = revoked_htlc_txn[0].output[0].value + revoked_htlc_txn[1].output[0].value - node_txn[4].output[0].value;
                feerate_1 = fee_1 * 1000 / node_txn[4].get_weight() as u64;
-               penalty_txn = vec![node_txn[0].clone(), node_txn[1].clone(), node_txn[2].clone()];
+               penalty_txn = vec![node_txn[2].clone()];
                node_txn.clear();
        }
 
-       // Connect three more block to see if bumped penalty are issued for HTLC txn
-       let header_130 = BlockHeader { version: 0x20000000, prev_blockhash: header_129.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_130, txdata: penalty_txn }, 130);
+       // Connect one more block to see if bumped penalty are issued for HTLC txn
+       let header_130 = BlockHeader { version: 0x20000000, prev_blockhash: header_129.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_130, txdata: penalty_txn }, 130);
+       let header_131 = BlockHeader { version: 0x20000000, prev_blockhash: header_130.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_131, txdata: Vec::new() }, 131);
        {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 2); // 2 bumped penalty txn on revoked commitment tx
 
                check_spends!(node_txn[0], revoked_local_txn[0]);
                check_spends!(node_txn[1], revoked_local_txn[0]);
+               // Note that these are both bogus - they spend outputs already claimed in block 129:
+               if node_txn[0].input[0].previous_output == revoked_htlc_txn[0].input[0].previous_output  {
+                       assert_eq!(node_txn[1].input[0].previous_output, revoked_htlc_txn[1].input[0].previous_output);
+               } else {
+                       assert_eq!(node_txn[0].input[0].previous_output, revoked_htlc_txn[1].input[0].previous_output);
+                       assert_eq!(node_txn[1].input[0].previous_output, revoked_htlc_txn[0].input[0].previous_output);
+               }
 
                node_txn.clear();
        };
 
        // Few more blocks to confirm penalty txn
-       let header_135 = connect_blocks(&nodes[0].block_notifier, 5, 130, true, header_130.bitcoin_hash());
+       let header_135 = connect_blocks(&nodes[0], 4, 131, true, header_131.block_hash());
        assert!(nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().is_empty());
-       let header_144 = connect_blocks(&nodes[0].block_notifier, 9, 135, true, header_135);
+       let header_144 = connect_blocks(&nodes[0], 9, 135, true, header_135);
        let node_txn = {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 1);
@@ -7709,8 +7878,8 @@ fn test_bump_penalty_txn_on_revoked_htlcs() {
        };
        // Broadcast claim txn and confirm blocks to avoid further bumps on this outputs
        let header_145 = BlockHeader { version: 0x20000000, prev_blockhash: header_144, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_145, txdata: node_txn }, 145);
-       connect_blocks(&nodes[0].block_notifier, 20, 145, true, header_145.bitcoin_hash());
+       connect_block(&nodes[0], &Block { header: header_145, txdata: node_txn }, 145);
+       connect_blocks(&nodes[0], 20, 145, true, header_145.block_hash());
        {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                // We verify than no new transaction has been broadcast because previously
@@ -7753,7 +7922,7 @@ fn test_bump_penalty_txn_on_remote_commitment() {
        // Claim a HTLC without revocation (provide B monitor with preimage)
        nodes[1].node.claim_funds(payment_preimage, &None, 3_000_000);
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[1].block_notifier.block_connected(&Block { header, txdata: vec![remote_txn[0].clone()] }, 1);
+       connect_block(&nodes[1], &Block { header, txdata: vec![remote_txn[0].clone()] }, 1);
        check_added_monitors!(nodes[1], 2);
 
        // One or more claim tx should have been broadcast, check it
@@ -7798,7 +7967,7 @@ fn test_bump_penalty_txn_on_remote_commitment() {
        assert_ne!(feerate_preimage, 0);
 
        // After exhaustion of height timer, new bumped claim txn should have been broadcast, check it
-       connect_blocks(&nodes[1].block_notifier, 15, 1,  true, header.bitcoin_hash());
+       connect_blocks(&nodes[1], 15, 1,  true, header.block_hash());
        {
                let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 2);
@@ -7862,7 +8031,7 @@ fn test_set_outpoints_partial_claiming() {
        check_spends!(remote_txn[2], remote_txn[0]);
 
        // Connect blocks on node A to advance height towards TEST_FINAL_CLTV
-       let prev_header_100 = connect_blocks(&nodes[1].block_notifier, 100, 0, false, Default::default());
+       let prev_header_100 = connect_blocks(&nodes[1], 100, 0, false, Default::default());
        // Provide node A with both preimage
        nodes[0].node.claim_funds(payment_preimage_1, &None, 3_000_000);
        nodes[0].node.claim_funds(payment_preimage_2, &None, 3_000_000);
@@ -7872,7 +8041,7 @@ fn test_set_outpoints_partial_claiming() {
 
        // Connect blocks on node A commitment transaction
        let header = BlockHeader { version: 0x20000000, prev_blockhash: prev_header_100, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![remote_txn[0].clone()] }, 101);
+       connect_block(&nodes[0], &Block { header, txdata: vec![remote_txn[0].clone()] }, 101);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
        // Verify node A broadcast tx claiming both HTLCs
@@ -7889,7 +8058,7 @@ fn test_set_outpoints_partial_claiming() {
        }
 
        // Connect blocks on node B
-       connect_blocks(&nodes[1].block_notifier, 135, 0, false, Default::default());
+       connect_blocks(&nodes[1], 135, 0, false, Default::default());
        check_closed_broadcast!(nodes[1], false);
        check_added_monitors!(nodes[1], 1);
        // Verify node B broadcast 2 HTLC-timeout txn
@@ -7904,8 +8073,8 @@ fn test_set_outpoints_partial_claiming() {
        };
 
        // Broadcast partial claim on node A, should regenerate a claiming tx with HTLC dropped
-       let header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header, txdata: vec![partial_claim_tx.clone()] }, 102);
+       let header = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header, txdata: vec![partial_claim_tx.clone()] }, 102);
        {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 1);
@@ -7916,7 +8085,7 @@ fn test_set_outpoints_partial_claiming() {
        nodes[0].node.get_and_clear_pending_msg_events();
 
        // Disconnect last block on node A, should regenerate a claiming tx with HTLC dropped
-       nodes[0].block_notifier.block_disconnected(&header, 102);
+       disconnect_block(&nodes[0], &header, 102);
        {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 1);
@@ -7926,8 +8095,8 @@ fn test_set_outpoints_partial_claiming() {
        }
 
        //// Disconnect one more block and then reconnect multiple no transaction should be generated
-       nodes[0].block_notifier.block_disconnected(&header, 101);
-       connect_blocks(&nodes[1].block_notifier, 15, 101, false, prev_header_100);
+       disconnect_block(&nodes[0], &header, 101);
+       connect_blocks(&nodes[1], 15, 101, false, prev_header_100);
        {
                let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
                assert_eq!(node_txn.len(), 0);
@@ -7951,11 +8120,12 @@ fn test_counterparty_raa_skip_no_crash() {
        let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
        let channel_id = create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known()).2;
 
-       let commitment_seed = nodes[0].node.channel_state.lock().unwrap().by_id.get_mut(&channel_id).unwrap().local_keys.commitment_seed().clone();
+       let mut guard = nodes[0].node.channel_state.lock().unwrap();
+       let keys = &guard.by_id.get_mut(&channel_id).unwrap().holder_keys;
        const INITIAL_COMMITMENT_NUMBER: u64 = (1 << 48) - 1;
        let next_per_commitment_point = PublicKey::from_secret_key(&Secp256k1::new(),
-               &SecretKey::from_slice(&chan_utils::build_commitment_secret(&commitment_seed, INITIAL_COMMITMENT_NUMBER - 2)).unwrap());
-       let per_commitment_secret = chan_utils::build_commitment_secret(&commitment_seed, INITIAL_COMMITMENT_NUMBER);
+               &SecretKey::from_slice(&keys.release_commitment_secret(INITIAL_COMMITMENT_NUMBER - 2)).unwrap());
+       let per_commitment_secret = keys.release_commitment_secret(INITIAL_COMMITMENT_NUMBER);
 
        nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(),
                &msgs::RevokeAndACK { channel_id, per_commitment_secret, next_per_commitment_point });
@@ -7986,11 +8156,11 @@ fn test_bump_txn_sanitize_tracking_maps() {
        claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage, 9_000_000);
 
        // Broadcast set of revoked txn on A
-       let header_128 = connect_blocks(&nodes[0].block_notifier, 128, 0,  false, Default::default());
+       let header_128 = connect_blocks(&nodes[0], 128, 0,  false, Default::default());
        expect_pending_htlcs_forwardable_ignore!(nodes[0]);
 
        let header_129 = BlockHeader { version: 0x20000000, prev_blockhash: header_128, merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_129, txdata: vec![revoked_local_txn[0].clone()] }, 129);
+       connect_block(&nodes[0], &Block { header: header_129, txdata: vec![revoked_local_txn[0].clone()] }, 129);
        check_closed_broadcast!(nodes[0], false);
        check_added_monitors!(nodes[0], 1);
        let penalty_txn = {
@@ -8003,11 +8173,11 @@ fn test_bump_txn_sanitize_tracking_maps() {
                node_txn.clear();
                penalty_txn
        };
-       let header_130 = BlockHeader { version: 0x20000000, prev_blockhash: header_129.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       nodes[0].block_notifier.block_connected(&Block { header: header_130, txdata: penalty_txn }, 130);
-       connect_blocks(&nodes[0].block_notifier, 5, 130,  false, header_130.bitcoin_hash());
+       let header_130 = BlockHeader { version: 0x20000000, prev_blockhash: header_129.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       connect_block(&nodes[0], &Block { header: header_130, txdata: penalty_txn }, 130);
+       connect_blocks(&nodes[0], 5, 130,  false, header_130.block_hash());
        {
-               let monitors = nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap();
+               let monitors = nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap();
                if let Some(monitor) = monitors.get(&OutPoint { txid: chan.3.txid(), index: 0 }) {
                        assert!(monitor.onchain_tx_handler.pending_claim_requests.is_empty());
                        assert!(monitor.onchain_tx_handler.claimable_outpoints.is_empty());
@@ -8136,23 +8306,24 @@ fn test_update_err_monitor_lockdown() {
        // Route a HTLC from node 0 to node 1 (but don't settle)
        let preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 9_000_000).0;
 
-       // Copy SimpleManyChannelMonitor to simulate a watchtower and update block height of node 0 until its ChannelMonitor timeout HTLC onchain
+       // Copy ChainMonitor to simulate a watchtower and update block height of node 0 until its ChannelMonitor timeout HTLC onchain
+       let chain_source = test_utils::TestChainSource::new(Network::Testnet);
        let logger = test_utils::TestLogger::with_id(format!("node {}", 0));
-       let chain_monitor = chaininterface::ChainWatchInterfaceUtil::new(Network::Testnet);
+       let persister = test_utils::TestPersister::new();
        let watchtower = {
-               let monitors = nodes[0].chan_monitor.simple_monitor.monitors.lock().unwrap();
+               let monitors = nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap();
                let monitor = monitors.get(&outpoint).unwrap();
                let mut w = test_utils::TestVecWriter(Vec::new());
-               monitor.write_for_disk(&mut w).unwrap();
+               monitor.serialize_for_disk(&mut w).unwrap();
                let new_monitor = <(BlockHash, channelmonitor::ChannelMonitor<EnforcingChannelKeys>)>::read(
                                &mut ::std::io::Cursor::new(&w.0)).unwrap().1;
                assert!(new_monitor == *monitor);
-               let watchtower = test_utils::TestChannelMonitor::new(&chain_monitor, &chanmon_cfgs[0].tx_broadcaster, &logger, &chanmon_cfgs[0].fee_estimator);
-               assert!(watchtower.add_monitor(outpoint, new_monitor).is_ok());
+               let watchtower = test_utils::TestChainMonitor::new(Some(&chain_source), &chanmon_cfgs[0].tx_broadcaster, &logger, &chanmon_cfgs[0].fee_estimator, &persister);
+               assert!(watchtower.watch_channel(outpoint, new_monitor).is_ok());
                watchtower
        };
        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-       watchtower.simple_monitor.block_connected(&header, 200, &vec![], &vec![]);
+       watchtower.chain_monitor.block_connected(&header, &[], 200);
 
        // Try to update ChannelMonitor
        assert!(nodes[1].node.claim_funds(preimage, &None, 9_000_000));
@@ -8162,8 +8333,8 @@ fn test_update_err_monitor_lockdown() {
        nodes[0].node.handle_update_fulfill_htlc(&nodes[1].node.get_our_node_id(), &updates.update_fulfill_htlcs[0]);
        if let Some(ref mut channel) = nodes[0].node.channel_state.lock().unwrap().by_id.get_mut(&chan_1.2) {
                if let Ok((_, _, _, update)) = channel.commitment_signed(&updates.commitment_signed, &node_cfgs[0].fee_estimator, &node_cfgs[0].logger) {
-                       if let Err(_) =  watchtower.simple_monitor.update_monitor(outpoint, update.clone()) {} else { assert!(false); }
-                       if let Ok(_) = nodes[0].chan_monitor.update_monitor(outpoint, update) {} else { assert!(false); }
+                       if let Err(_) =  watchtower.chain_monitor.update_channel(outpoint, update.clone()) {} else { assert!(false); }
+                       if let Ok(_) = nodes[0].chain_monitor.update_channel(outpoint, update) {} else { assert!(false); }
                } else { assert!(false); }
        } else { assert!(false); };
        // Our local monitor is in-sync and hasn't processed yet timeout
@@ -8171,3 +8342,164 @@ fn test_update_err_monitor_lockdown() {
        let events = nodes[0].node.get_and_clear_pending_events();
        assert_eq!(events.len(), 1);
 }
+
+#[test]
+fn test_concurrent_monitor_claim() {
+       // Watchtower A receives block, broadcasts state N, then channel receives new state N+1,
+       // sending it to both watchtowers, Bob accepts N+1, then receives block and broadcasts
+       // the latest state N+1, Alice rejects state N+1, but Bob has already broadcast it,
+       // state N+1 confirms. Alice claims output from state N+1.
+
+       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]);
+       let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+
+       // Create some initial channel
+       let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1, InitFeatures::known(), InitFeatures::known());
+       let outpoint = OutPoint { txid: chan_1.3.txid(), index: 0 };
+
+       // Rebalance the network to generate htlc in the two directions
+       send_payment(&nodes[0], &vec!(&nodes[1])[..], 10_000_000, 10_000_000);
+
+       // Route a HTLC from node 0 to node 1 (but don't settle)
+       route_payment(&nodes[0], &vec!(&nodes[1])[..], 9_000_000).0;
+
+       // Copy ChainMonitor to simulate watchtower Alice and update block height her ChannelMonitor timeout HTLC onchain
+       let chain_source = test_utils::TestChainSource::new(Network::Testnet);
+       let logger = test_utils::TestLogger::with_id(format!("node {}", "Alice"));
+       let persister = test_utils::TestPersister::new();
+       let watchtower_alice = {
+               let monitors = nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap();
+               let monitor = monitors.get(&outpoint).unwrap();
+               let mut w = test_utils::TestVecWriter(Vec::new());
+               monitor.serialize_for_disk(&mut w).unwrap();
+               let new_monitor = <(BlockHash, channelmonitor::ChannelMonitor<EnforcingChannelKeys>)>::read(
+                               &mut ::std::io::Cursor::new(&w.0)).unwrap().1;
+               assert!(new_monitor == *monitor);
+               let watchtower = test_utils::TestChainMonitor::new(Some(&chain_source), &chanmon_cfgs[0].tx_broadcaster, &logger, &chanmon_cfgs[0].fee_estimator, &persister);
+               assert!(watchtower.watch_channel(outpoint, new_monitor).is_ok());
+               watchtower
+       };
+       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       watchtower_alice.chain_monitor.block_connected(&header, &vec![], 135);
+
+       // Watchtower Alice should have broadcast a commitment/HTLC-timeout
+       {
+               let mut txn = chanmon_cfgs[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(txn.len(), 2);
+               txn.clear();
+       }
+
+       // Copy ChainMonitor to simulate watchtower Bob and make it receive a commitment update first.
+       let chain_source = test_utils::TestChainSource::new(Network::Testnet);
+       let logger = test_utils::TestLogger::with_id(format!("node {}", "Bob"));
+       let persister = test_utils::TestPersister::new();
+       let watchtower_bob = {
+               let monitors = nodes[0].chain_monitor.chain_monitor.monitors.lock().unwrap();
+               let monitor = monitors.get(&outpoint).unwrap();
+               let mut w = test_utils::TestVecWriter(Vec::new());
+               monitor.serialize_for_disk(&mut w).unwrap();
+               let new_monitor = <(BlockHash, channelmonitor::ChannelMonitor<EnforcingChannelKeys>)>::read(
+                               &mut ::std::io::Cursor::new(&w.0)).unwrap().1;
+               assert!(new_monitor == *monitor);
+               let watchtower = test_utils::TestChainMonitor::new(Some(&chain_source), &chanmon_cfgs[0].tx_broadcaster, &logger, &chanmon_cfgs[0].fee_estimator, &persister);
+               assert!(watchtower.watch_channel(outpoint, new_monitor).is_ok());
+               watchtower
+       };
+       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+       watchtower_bob.chain_monitor.block_connected(&header, &vec![], 134);
+
+       // Route another payment to generate another update with still previous HTLC pending
+       let (_, payment_hash) = get_payment_preimage_hash!(nodes[0]);
+       {
+               let net_graph_msg_handler = &nodes[1].net_graph_msg_handler;
+               let route = get_route(&nodes[1].node.get_our_node_id(), &net_graph_msg_handler.network_graph.read().unwrap(), &nodes[0].node.get_our_node_id(), None, &Vec::new(), 3000000 , TEST_FINAL_CLTV, &logger).unwrap();
+               nodes[1].node.send_payment(&route, payment_hash, &None).unwrap();
+       }
+       check_added_monitors!(nodes[1], 1);
+
+       let updates = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+       assert_eq!(updates.update_add_htlcs.len(), 1);
+       nodes[0].node.handle_update_add_htlc(&nodes[1].node.get_our_node_id(), &updates.update_add_htlcs[0]);
+       if let Some(ref mut channel) = nodes[0].node.channel_state.lock().unwrap().by_id.get_mut(&chan_1.2) {
+               if let Ok((_, _, _, update)) = channel.commitment_signed(&updates.commitment_signed, &node_cfgs[0].fee_estimator, &node_cfgs[0].logger) {
+                       // Watchtower Alice should already have seen the block and reject the update
+                       if let Err(_) =  watchtower_alice.chain_monitor.update_channel(outpoint, update.clone()) {} else { assert!(false); }
+                       if let Ok(_) = watchtower_bob.chain_monitor.update_channel(outpoint, update.clone()) {} else { assert!(false); }
+                       if let Ok(_) = nodes[0].chain_monitor.update_channel(outpoint, update) {} else { assert!(false); }
+               } else { assert!(false); }
+       } else { assert!(false); };
+       // Our local monitor is in-sync and hasn't processed yet timeout
+       check_added_monitors!(nodes[0], 1);
+
+       //// Provide one more block to watchtower Bob, expect broadcast of commitment and HTLC-Timeout
+       watchtower_bob.chain_monitor.block_connected(&header, &vec![], 135);
+
+       // Watchtower Bob should have broadcast a commitment/HTLC-timeout
+       let bob_state_y;
+       {
+               let mut txn = chanmon_cfgs[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(txn.len(), 2);
+               bob_state_y = txn[0].clone();
+               txn.clear();
+       };
+
+       // We confirm Bob's state Y on Alice, she should broadcast a HTLC-timeout
+       watchtower_alice.chain_monitor.block_connected(&header, &vec![(0, &bob_state_y)], 136);
+       {
+               let htlc_txn = chanmon_cfgs[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               // We broadcast twice the transaction, once due to the HTLC-timeout, once due
+               // the onchain detection of the HTLC output
+               assert_eq!(htlc_txn.len(), 2);
+               check_spends!(htlc_txn[0], bob_state_y);
+               check_spends!(htlc_txn[1], bob_state_y);
+       }
+}
+
+#[test]
+fn test_htlc_no_detection() {
+       // This test is a mutation to underscore the detection logic bug we had
+        // before #653. HTLC value routed is above the remaining balance, thus
+        // inverting HTLC and `to_remote` output. HTLC will come second and
+        // it wouldn't be seen by pre-#653 detection as we were enumerate()'ing
+        // on a watched outputs vector (Vec<TxOut>) thus implicitly relying on
+        // outputs order detection for correct spending children filtring.
+
+        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]);
+        let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+
+        // Create some initial channels
+        let chan_1 = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 10001, InitFeatures::known(), InitFeatures::known());
+
+        send_payment(&nodes[0], &vec!(&nodes[1])[..], 1_000_000, 1_000_000);
+        let (_, our_payment_hash) = route_payment(&nodes[0], &vec!(&nodes[1])[..], 2_000_000);
+        let local_txn = get_local_commitment_txn!(nodes[0], chan_1.2);
+        assert_eq!(local_txn[0].input.len(), 1);
+        assert_eq!(local_txn[0].output.len(), 3);
+        check_spends!(local_txn[0], chan_1.3);
+
+        // Timeout HTLC on A's chain and so it can generate a HTLC-Timeout tx
+        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+        connect_block(&nodes[0], &Block { header, txdata: vec![local_txn[0].clone()] }, 200);
+       // We deliberately connect the local tx twice as this should provoke a failure calling
+       // this test before #653 fix.
+        connect_block(&nodes[0], &Block { header, txdata: vec![local_txn[0].clone()] }, 200);
+        check_closed_broadcast!(nodes[0], false);
+        check_added_monitors!(nodes[0], 1);
+
+        let htlc_timeout = {
+                let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+                assert_eq!(node_txn[0].input.len(), 1);
+                assert_eq!(node_txn[0].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+                check_spends!(node_txn[0], local_txn[0]);
+                node_txn[0].clone()
+        };
+
+        let header_201 = BlockHeader { version: 0x20000000, prev_blockhash: header.block_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+        connect_block(&nodes[0], &Block { header: header_201, txdata: vec![htlc_timeout.clone()] }, 201);
+        connect_blocks(&nodes[0], ANTI_REORG_DELAY - 1, 201, true, header_201.block_hash());
+        expect_payment_failed!(nodes[0], our_payment_hash, true);
+}