Switch Sha256 to using bitcoin_hashes and our own HKDF
[rust-lightning] / src / ln / channel.rs
index 3dc81ccd241785330820dae4d61637ce16377e0f..5bc5fdf8be126063437f3ffe65dc7f5076a4b882 100644 (file)
@@ -2,22 +2,21 @@ use bitcoin::blockdata::block::BlockHeader;
 use bitcoin::blockdata::script::{Script,Builder};
 use bitcoin::blockdata::transaction::{TxIn, TxOut, Transaction, SigHashType};
 use bitcoin::blockdata::opcodes;
-use bitcoin::util::hash::{Sha256dHash, Hash160};
+use bitcoin::util::hash::{BitcoinHash, Sha256dHash, Hash160};
 use bitcoin::util::bip143;
-use bitcoin::network;
-use bitcoin::network::serialize::{BitcoinHash, RawDecoder, RawEncoder};
-use bitcoin::network::encodable::{ConsensusEncodable, ConsensusDecodable};
+use bitcoin::consensus::encode::{self, Encodable, Decodable};
+
+use bitcoin_hashes::{Hash, HashEngine};
+use bitcoin_hashes::sha256::Hash as Sha256;
 
 use secp256k1::key::{PublicKey,SecretKey};
 use secp256k1::{Secp256k1,Message,Signature};
 use secp256k1;
 
-use crypto::digest::Digest;
-
 use ln::msgs;
-use ln::msgs::{DecodeError, ErrorAction, HandleError};
+use ln::msgs::DecodeError;
 use ln::channelmonitor::ChannelMonitor;
-use ln::channelmanager::{PendingHTLCStatus, HTLCSource, HTLCFailReason, HTLCFailureMsg, PendingForwardHTLCInfo, RAACommitmentOrder};
+use ln::channelmanager::{PendingHTLCStatus, HTLCSource, HTLCFailReason, HTLCFailureMsg, PendingForwardHTLCInfo, RAACommitmentOrder, PaymentPreimage, PaymentHash};
 use ln::chan_utils::{TxCreationKeys,HTLCOutputInCommitment,HTLC_SUCCESS_TX_WEIGHT,HTLC_TIMEOUT_TX_WEIGHT};
 use ln::chan_utils;
 use chain::chaininterface::{FeeEstimator,ConfirmationTarget};
@@ -25,7 +24,6 @@ use chain::transaction::OutPoint;
 use chain::keysinterface::{ChannelKeys, KeysInterface};
 use util::{transaction_utils,rng};
 use util::ser::{Readable, ReadableArgs, Writeable, Writer, WriterWriteAdaptor};
-use util::sha2::Sha256;
 use util::logger::Logger;
 use util::errors::APIError;
 use util::config::{UserConfig,ChannelConfig};
@@ -50,7 +48,7 @@ pub struct ChannelValueStat {
 enum InboundHTLCRemovalReason {
        FailRelay(msgs::OnionErrorPacket),
        FailMalformed(([u8; 32], u16)),
-       Fulfill([u8; 32]),
+       Fulfill(PaymentPreimage),
 }
 
 enum InboundHTLCState {
@@ -86,7 +84,7 @@ struct InboundHTLCOutput {
        htlc_id: u64,
        amount_msat: u64,
        cltv_expiry: u32,
-       payment_hash: [u8; 32],
+       payment_hash: PaymentHash,
        state: InboundHTLCState,
 }
 
@@ -126,7 +124,7 @@ struct OutboundHTLCOutput {
        htlc_id: u64,
        amount_msat: u64,
        cltv_expiry: u32,
-       payment_hash: [u8; 32],
+       payment_hash: PaymentHash,
        state: OutboundHTLCState,
        source: HTLCSource,
        /// If we're in a removed state, set if they failed, otherwise None
@@ -151,13 +149,13 @@ enum HTLCUpdateAwaitingACK {
                // always outbound
                amount_msat: u64,
                cltv_expiry: u32,
-               payment_hash: [u8; 32],
+               payment_hash: PaymentHash,
                source: HTLCSource,
                onion_routing_packet: msgs::OnionPacket,
                time_created: Instant, //TODO: Some kind of timeout thing-a-majig
        },
        ClaimHTLC {
-               payment_preimage: [u8; 32],
+               payment_preimage: PaymentPreimage,
                htlc_id: u64,
        },
        FailHTLC {
@@ -265,7 +263,7 @@ pub(super) struct Channel {
        monitor_pending_commitment_signed: bool,
        monitor_pending_order: Option<RAACommitmentOrder>,
        monitor_pending_forwards: Vec<(PendingForwardHTLCInfo, u64)>,
-       monitor_pending_failures: Vec<(HTLCSource, [u8; 32], HTLCFailReason)>,
+       monitor_pending_failures: Vec<(HTLCSource, PaymentHash, HTLCFailReason)>,
 
        // pending_update_fee is filled when sending and receiving update_fee
        // For outbound channel, feerate_per_kw is updated with the value from
@@ -357,36 +355,39 @@ const UNCONF_THRESHOLD: u32 = 6;
 const BREAKDOWN_TIMEOUT: u16 = 6 * 24 * 7; //TODO?
 /// The amount of time we're willing to wait to claim money back to us
 const MAX_LOCAL_BREAKDOWN_TIMEOUT: u16 = 6 * 24 * 14;
-const COMMITMENT_TX_BASE_WEIGHT: u64 = 724;
-const COMMITMENT_TX_WEIGHT_PER_HTLC: u64 = 172;
+/// Exposing these two constants for use in test in ChannelMonitor
+pub const COMMITMENT_TX_BASE_WEIGHT: u64 = 724;
+pub const COMMITMENT_TX_WEIGHT_PER_HTLC: u64 = 172;
 const SPENDING_INPUT_FOR_A_OUTPUT_WEIGHT: u64 = 79; // prevout: 36, nSequence: 4, script len: 1, witness lengths: (3+1)/4, sig: 73/4, if-selector: 1, redeemScript: (6 ops + 2*33 pubkeys + 1*2 delay)/4
 const B_OUTPUT_PLUS_SPENDING_INPUT_WEIGHT: u64 = 104; // prevout: 40, nSequence: 4, script len: 1, witness lengths: 3/4, sig: 73/4, pubkey: 33/4, output: 31 (TODO: Wrong? Useless?)
 /// Maximmum `funding_satoshis` value, according to the BOLT #2 specification
 /// it's 2^24.
 pub const MAX_FUNDING_SATOSHIS: u64 = (1 << 24);
 
+#[cfg(test)]
+pub const ACCEPTED_HTLC_SCRIPT_WEIGHT: usize = 138; //Here we have a diff due to HTLC CLTV expiry being < 2^15 in test
+#[cfg(not(test))]
+pub const ACCEPTED_HTLC_SCRIPT_WEIGHT: usize = 139;
+pub const OFFERED_HTLC_SCRIPT_WEIGHT: usize = 133;
+
 /// Used to return a simple Error back to ChannelManager. Will get converted to a
 /// msgs::ErrorAction::SendErrorMessage or msgs::ErrorAction::IgnoreError as appropriate with our
 /// channel_id in ChannelManager.
+#[derive(Debug)]
 pub(super) enum ChannelError {
        Ignore(&'static str),
        Close(&'static str),
 }
 
-macro_rules! secp_call {
-       ( $res: expr, $err: expr, $chan_id: expr ) => {
+macro_rules! secp_check {
+       ($res: expr, $err: expr) => {
                match $res {
-                       Ok(key) => key,
-                       Err(_) => return Err(HandleError {err: $err, action: Some(msgs::ErrorAction::SendErrorMessage {msg: msgs::ErrorMessage {channel_id: $chan_id, data: $err.to_string()}})})
+                       Ok(thing) => thing,
+                       Err(_) => return Err(ChannelError::Close($err)),
                }
        };
 }
 
-macro_rules! secp_derived_key {
-       ( $res: expr, $chan_id: expr ) => {
-               secp_call!($res, "Derived invalid key, peer is maliciously selecting parameters", $chan_id)
-       }
-}
 impl Channel {
        // Convert constants + channel value to limits:
        fn get_our_max_htlc_value_in_flight_msat(channel_value_satoshis: u64) -> u64 {
@@ -438,7 +439,7 @@ impl Channel {
 
                let secp_ctx = Secp256k1::new();
                let channel_monitor = ChannelMonitor::new(&chan_keys.revocation_base_key, &chan_keys.delayed_payment_base_key,
-                                                         &chan_keys.htlc_base_key, BREAKDOWN_TIMEOUT,
+                                                         &chan_keys.htlc_base_key, &chan_keys.payment_base_key, &keys_provider.get_shutdown_pubkey(), BREAKDOWN_TIMEOUT,
                                                          keys_provider.get_destination_script(), logger.clone());
 
                Ok(Channel {
@@ -626,7 +627,7 @@ impl Channel {
 
                let secp_ctx = Secp256k1::new();
                let mut channel_monitor = ChannelMonitor::new(&chan_keys.revocation_base_key, &chan_keys.delayed_payment_base_key,
-                                                             &chan_keys.htlc_base_key, BREAKDOWN_TIMEOUT,
+                                                             &chan_keys.htlc_base_key, &chan_keys.payment_base_key, &keys_provider.get_shutdown_pubkey(), BREAKDOWN_TIMEOUT,
                                                              keys_provider.get_destination_script(), logger.clone());
                channel_monitor.set_their_base_keys(&msg.htlc_basepoint, &msg.delayed_payment_basepoint);
                channel_monitor.set_their_to_self_delay(msg.to_self_delay);
@@ -721,7 +722,7 @@ impl Channel {
        // Utilities to build transactions:
 
        fn get_commitment_transaction_number_obscure_factor(&self) -> u64 {
-               let mut sha = Sha256::new();
+               let mut sha = Sha256::engine();
                let our_payment_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key);
 
                if self.channel_outbound {
@@ -731,8 +732,7 @@ impl Channel {
                        sha.input(&self.their_payment_basepoint.unwrap().serialize());
                        sha.input(&our_payment_basepoint.serialize());
                }
-               let mut res = [0; 32];
-               sha.result(&mut res);
+               let res = Sha256::from_engine(sha).into_inner();
 
                ((res[26] as u64) << 5*8) |
                ((res[27] as u64) << 4*8) |
@@ -756,7 +756,7 @@ impl Channel {
        /// generated by the peer which proposed adding the HTLCs, and thus we need to understand both
        /// which peer generated this transaction and "to whom" this transaction flows.
        #[inline]
-       fn build_commitment_transaction(&self, commitment_number: u64, keys: &TxCreationKeys, local: bool, generated_by_local: bool, feerate_per_kw: u64) -> (Transaction, Vec<HTLCOutputInCommitment>) {
+       fn build_commitment_transaction(&self, commitment_number: u64, keys: &TxCreationKeys, local: bool, generated_by_local: bool, feerate_per_kw: u64) -> (Transaction, Vec<HTLCOutputInCommitment>, Vec<(PaymentHash, &HTLCSource, Option<u32>)>) {
                let obscured_commitment_transaction_number = self.get_commitment_transaction_number_obscure_factor() ^ (INITIAL_COMMITMENT_NUMBER - commitment_number);
 
                let txins = {
@@ -770,7 +770,8 @@ impl Channel {
                        ins
                };
 
-               let mut txouts: Vec<(TxOut, Option<HTLCOutputInCommitment>)> = Vec::with_capacity(self.pending_inbound_htlcs.len() + self.pending_outbound_htlcs.len() + 2);
+               let mut txouts: Vec<(TxOut, Option<(HTLCOutputInCommitment, Option<&HTLCSource>)>)> = Vec::with_capacity(self.pending_inbound_htlcs.len() + self.pending_outbound_htlcs.len() + 2);
+               let mut unincluded_htlc_sources: Vec<(PaymentHash, &HTLCSource, Option<u32>)> = Vec::new();
 
                let dust_limit_satoshis = if local { self.our_dust_limit_satoshis } else { self.their_dust_limit_satoshis };
                let mut remote_htlc_total_msat = 0;
@@ -778,14 +779,18 @@ impl Channel {
                let mut value_to_self_msat_offset = 0;
 
                macro_rules! add_htlc_output {
-                       ($htlc: expr, $outbound: expr) => {
+                       ($htlc: expr, $outbound: expr, $source: expr) => {
                                if $outbound == local { // "offered HTLC output"
                                        if $htlc.amount_msat / 1000 >= dust_limit_satoshis + (feerate_per_kw * HTLC_TIMEOUT_TX_WEIGHT / 1000) {
                                                let htlc_in_tx = get_htlc_in_commitment!($htlc, true);
                                                txouts.push((TxOut {
                                                        script_pubkey: chan_utils::get_htlc_redeemscript(&htlc_in_tx, &keys).to_v0_p2wsh(),
                                                        value: $htlc.amount_msat / 1000
-                                               }, Some(htlc_in_tx)));
+                                               }, Some((htlc_in_tx, $source))));
+                                       } else {
+                                               if let Some(source) = $source {
+                                                       unincluded_htlc_sources.push(($htlc.payment_hash, source, None));
+                                               }
                                        }
                                } else {
                                        if $htlc.amount_msat / 1000 >= dust_limit_satoshis + (feerate_per_kw * HTLC_SUCCESS_TX_WEIGHT / 1000) {
@@ -793,7 +798,11 @@ impl Channel {
                                                txouts.push((TxOut { // "received HTLC output"
                                                        script_pubkey: chan_utils::get_htlc_redeemscript(&htlc_in_tx, &keys).to_v0_p2wsh(),
                                                        value: $htlc.amount_msat / 1000
-                                               }, Some(htlc_in_tx)));
+                                               }, Some((htlc_in_tx, $source))));
+                                       } else {
+                                               if let Some(source) = $source {
+                                                       unincluded_htlc_sources.push(($htlc.payment_hash, source, None));
+                                               }
                                        }
                                }
                        }
@@ -809,7 +818,7 @@ impl Channel {
                        };
 
                        if include {
-                               add_htlc_output!(htlc, false);
+                               add_htlc_output!(htlc, false, None);
                                remote_htlc_total_msat += htlc.amount_msat;
                        } else {
                                match &htlc.state {
@@ -835,7 +844,7 @@ impl Channel {
                        };
 
                        if include {
-                               add_htlc_output!(htlc, true);
+                               add_htlc_output!(htlc, true, Some(&htlc.source));
                                local_htlc_total_msat += htlc.amount_msat;
                        } else {
                                match htlc.state {
@@ -906,21 +915,26 @@ impl Channel {
                transaction_utils::sort_outputs(&mut txouts);
 
                let mut outputs: Vec<TxOut> = Vec::with_capacity(txouts.len());
-               let mut htlcs_used: Vec<HTLCOutputInCommitment> = Vec::with_capacity(txouts.len());
+               let mut htlcs_included: Vec<HTLCOutputInCommitment> = Vec::with_capacity(txouts.len());
+               let mut htlc_sources: Vec<(PaymentHash, &HTLCSource, Option<u32>)> = Vec::with_capacity(txouts.len() + unincluded_htlc_sources.len());
                for (idx, out) in txouts.drain(..).enumerate() {
                        outputs.push(out.0);
-                       if let Some(out_htlc) = out.1 {
-                               htlcs_used.push(out_htlc);
-                               htlcs_used.last_mut().unwrap().transaction_output_index = idx as u32;
+                       if let Some((mut htlc, source_option)) = out.1 {
+                               htlc.transaction_output_index = idx as u32;
+                               if let Some(source) = source_option {
+                                       htlc_sources.push((htlc.payment_hash, source, Some(idx as u32)));
+                               }
+                               htlcs_included.push(htlc);
                        }
                }
+               htlc_sources.append(&mut unincluded_htlc_sources);
 
                (Transaction {
                        version: 2,
                        lock_time: ((0x20 as u32) << 8*3) | ((obscured_commitment_transaction_number & 0xffffffu64) as u32),
                        input: txins,
                        output: outputs,
-               }, htlcs_used)
+               }, htlcs_included, htlc_sources)
        }
 
        #[inline]
@@ -998,25 +1012,26 @@ impl Channel {
        /// our counterparty!)
        /// The result is a transaction which we can revoke ownership of (ie a "local" transaction)
        /// TODO Some magic rust shit to compile-time check this?
-       fn build_local_transaction_keys(&self, commitment_number: u64) -> Result<TxCreationKeys, HandleError> {
+       fn build_local_transaction_keys(&self, commitment_number: u64) -> Result<TxCreationKeys, ChannelError> {
                let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(commitment_number));
                let delayed_payment_base = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key);
                let htlc_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key);
 
-               Ok(secp_derived_key!(TxCreationKeys::new(&self.secp_ctx, &per_commitment_point, &delayed_payment_base, &htlc_basepoint, &self.their_revocation_basepoint.unwrap(), &self.their_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap()), self.channel_id()))
+               Ok(secp_check!(TxCreationKeys::new(&self.secp_ctx, &per_commitment_point, &delayed_payment_base, &htlc_basepoint, &self.their_revocation_basepoint.unwrap(), &self.their_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap()), "Local tx keys generation got bogus keys"))
        }
 
        #[inline]
        /// Creates a set of keys for build_commitment_transaction to generate a transaction which we
        /// will sign and send to our counterparty.
-       fn build_remote_transaction_keys(&self) -> Result<TxCreationKeys, HandleError> {
+       /// If an Err is returned, it is a ChannelError::Close (for get_outbound_funding_created)
+       fn build_remote_transaction_keys(&self) -> Result<TxCreationKeys, ChannelError> {
                //TODO: Ensure that the payment_key derived here ends up in the library users' wallet as we
                //may see payments to it!
                let payment_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key);
                let revocation_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key);
                let htlc_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key);
 
-               Ok(secp_derived_key!(TxCreationKeys::new(&self.secp_ctx, &self.their_cur_commitment_point.unwrap(), &self.their_delayed_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap(), &revocation_basepoint, &payment_basepoint, &htlc_basepoint), self.channel_id()))
+               Ok(secp_check!(TxCreationKeys::new(&self.secp_ctx, &self.their_cur_commitment_point.unwrap(), &self.their_delayed_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap(), &revocation_basepoint, &payment_basepoint, &htlc_basepoint), "Remote tx keys generation got bogus keys"))
        }
 
        /// Gets the redeemscript for the funding transaction output (ie the funding transaction output
@@ -1074,14 +1089,14 @@ impl Channel {
                chan_utils::build_htlc_transaction(prev_hash, feerate_per_kw, if local { self.their_to_self_delay } else { BREAKDOWN_TIMEOUT }, htlc, &keys.a_delayed_payment_key, &keys.revocation_key)
        }
 
-       fn create_htlc_tx_signature(&self, tx: &Transaction, htlc: &HTLCOutputInCommitment, keys: &TxCreationKeys) -> Result<(Script, Signature, bool), HandleError> {
+       fn create_htlc_tx_signature(&self, tx: &Transaction, htlc: &HTLCOutputInCommitment, keys: &TxCreationKeys) -> Result<(Script, Signature, bool), ChannelError> {
                if tx.input.len() != 1 {
                        panic!("Tried to sign HTLC transaction that had input count != 1!");
                }
 
                let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &keys);
 
-               let our_htlc_key = secp_derived_key!(chan_utils::derive_private_key(&self.secp_ctx, &keys.per_commitment_point, &self.local_keys.htlc_base_key), self.channel_id());
+               let our_htlc_key = secp_check!(chan_utils::derive_private_key(&self.secp_ctx, &keys.per_commitment_point, &self.local_keys.htlc_base_key), "Derived invalid key, peer is maliciously selecting parameters");
                let sighash = Message::from_slice(&bip143::SighashComponents::new(&tx).sighash_all(&tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
                let is_local_tx = PublicKey::from_secret_key(&self.secp_ctx, &our_htlc_key) == keys.a_htlc_key;
                Ok((htlc_redeemscript, self.secp_ctx.sign(&sighash, &our_htlc_key), is_local_tx))
@@ -1089,7 +1104,7 @@ impl Channel {
 
        /// Signs a transaction created by build_htlc_transaction. If the transaction is an
        /// HTLC-Success transaction (ie htlc.offered is false), preimate must be set!
-       fn sign_htlc_transaction(&self, tx: &mut Transaction, their_sig: &Signature, preimage: &Option<[u8; 32]>, htlc: &HTLCOutputInCommitment, keys: &TxCreationKeys) -> Result<Signature, HandleError> {
+       fn sign_htlc_transaction(&self, tx: &mut Transaction, their_sig: &Signature, preimage: &Option<PaymentPreimage>, htlc: &HTLCOutputInCommitment, keys: &TxCreationKeys) -> Result<Signature, ChannelError> {
                if tx.input.len() != 1 {
                        panic!("Tried to sign HTLC transaction that had input count != 1!");
                }
@@ -1114,7 +1129,7 @@ impl Channel {
                if htlc.offered {
                        tx.input[0].witness.push(Vec::new());
                } else {
-                       tx.input[0].witness.push(preimage.unwrap().to_vec());
+                       tx.input[0].witness.push(preimage.unwrap().0.to_vec());
                }
 
                tx.input[0].witness.push(htlc_redeemscript.into_bytes());
@@ -1122,9 +1137,10 @@ impl Channel {
                Ok(our_sig)
        }
 
-       /// May return an IgnoreError, but should not, and will always return Ok(_) when
-       /// debug_assertions are turned on
-       fn get_update_fulfill_htlc(&mut self, htlc_id_arg: u64, payment_preimage_arg: [u8; 32]) -> Result<(Option<msgs::UpdateFulfillHTLC>, Option<ChannelMonitor>), HandleError> {
+       /// Per HTLC, only one get_update_fail_htlc or get_update_fulfill_htlc call may be made.
+       /// In such cases we debug_assert!(false) and return an IgnoreError. Thus, will always return
+       /// Ok(_) if debug assertions are turned on and preconditions are met.
+       fn get_update_fulfill_htlc(&mut self, htlc_id_arg: u64, payment_preimage_arg: PaymentPreimage) -> Result<(Option<msgs::UpdateFulfillHTLC>, Option<ChannelMonitor>), ChannelError> {
                // Either ChannelFunded got set (which means it wont bet unset) or there is no way any
                // caller thought we could have something claimed (cause we wouldn't have accepted in an
                // incoming HTLC anyway). If we got to ShutdownComplete, callers aren't allowed to call us,
@@ -1134,27 +1150,36 @@ impl Channel {
                }
                assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
 
-               let mut sha = Sha256::new();
-               sha.input(&payment_preimage_arg);
-               let mut payment_hash_calc = [0; 32];
-               sha.result(&mut payment_hash_calc);
+               let payment_hash_calc = PaymentHash(Sha256::hash(&payment_preimage_arg.0[..]).into_inner());
+
+               // ChannelManager may generate duplicate claims/fails due to HTLC update events from
+               // on-chain ChannelsMonitors during block rescan. Ideally we'd figure out a way to drop
+               // these, but for now we just have to treat them as normal.
 
                let mut pending_idx = std::usize::MAX;
                for (idx, htlc) in self.pending_inbound_htlcs.iter().enumerate() {
                        if htlc.htlc_id == htlc_id_arg {
                                assert_eq!(htlc.payment_hash, payment_hash_calc);
-                               if let InboundHTLCState::Committed = htlc.state {
-                               } else {
-                                       debug_assert!(false, "Have an inbound HTLC we tried to claim before it was fully committed to");
-                                       // Don't return in release mode here so that we can update channel_monitor
+                               match htlc.state {
+                                       InboundHTLCState::Committed => {},
+                                       InboundHTLCState::LocalRemoved(ref reason) => {
+                                               if let &InboundHTLCRemovalReason::Fulfill(_) = reason {
+                                               } else {
+                                                       log_warn!(self, "Have preimage and want to fulfill HTLC with payment hash {} we already failed against channel {}", log_bytes!(htlc.payment_hash.0), log_bytes!(self.channel_id()));
+                                               }
+                                               return Ok((None, None));
+                                       },
+                                       _ => {
+                                               debug_assert!(false, "Have an inbound HTLC we tried to claim before it was fully committed to");
+                                               // Don't return in release mode here so that we can update channel_monitor
+                                       }
                                }
                                pending_idx = idx;
                                break;
                        }
                }
                if pending_idx == std::usize::MAX {
-                       debug_assert!(false, "Unable to find a pending HTLC which matched the given HTLC ID");
-                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+                       return Err(ChannelError::Ignore("Unable to find a pending HTLC which matched the given HTLC ID"));
                }
 
                // Now update local state:
@@ -1168,14 +1193,15 @@ impl Channel {
                                match pending_update {
                                        &HTLCUpdateAwaitingACK::ClaimHTLC { htlc_id, .. } => {
                                                if htlc_id_arg == htlc_id {
-                                                       debug_assert!(false, "Tried to fulfill an HTLC we already had a pending fulfill for");
                                                        return Ok((None, None));
                                                }
                                        },
                                        &HTLCUpdateAwaitingACK::FailHTLC { htlc_id, .. } => {
                                                if htlc_id_arg == htlc_id {
-                                                       debug_assert!(false, "Tried to fulfill an HTLC we already had a holding-cell failure on");
-                                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+                                                       log_warn!(self, "Have preimage and want to fulfill HTLC with pending failure against channel {}", log_bytes!(self.channel_id()));
+                                                       // TODO: We may actually be able to switch to a fulfill here, though its
+                                                       // rare enough it may not be worth the complexity burden.
+                                                       return Ok((None, Some(self.channel_monitor.clone())));
                                                }
                                        },
                                        _ => {}
@@ -1204,7 +1230,7 @@ impl Channel {
                }), Some(self.channel_monitor.clone())))
        }
 
-       pub fn get_update_fulfill_htlc_and_commit(&mut self, htlc_id: u64, payment_preimage: [u8; 32]) -> Result<(Option<(msgs::UpdateFulfillHTLC, msgs::CommitmentSigned)>, Option<ChannelMonitor>), HandleError> {
+       pub fn get_update_fulfill_htlc_and_commit(&mut self, htlc_id: u64, payment_preimage: PaymentPreimage) -> Result<(Option<(msgs::UpdateFulfillHTLC, msgs::CommitmentSigned)>, Option<ChannelMonitor>), ChannelError> {
                match self.get_update_fulfill_htlc(htlc_id, payment_preimage)? {
                        (Some(update_fulfill_htlc), _) => {
                                let (commitment, monitor_update) = self.send_commitment_no_status_check()?;
@@ -1215,28 +1241,37 @@ impl Channel {
                }
        }
 
-       /// May return an IgnoreError, but should not, and will always return Ok(_) when
-       /// debug_assertions are turned on
-       pub fn get_update_fail_htlc(&mut self, htlc_id_arg: u64, err_packet: msgs::OnionErrorPacket) -> Result<Option<msgs::UpdateFailHTLC>, HandleError> {
+       /// Per HTLC, only one get_update_fail_htlc or get_update_fulfill_htlc call may be made.
+       /// In such cases we debug_assert!(false) and return an IgnoreError. Thus, will always return
+       /// Ok(_) if debug assertions are turned on and preconditions are met.
+       pub fn get_update_fail_htlc(&mut self, htlc_id_arg: u64, err_packet: msgs::OnionErrorPacket) -> Result<Option<msgs::UpdateFailHTLC>, ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        panic!("Was asked to fail an HTLC when channel was not in an operational state");
                }
                assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
 
+               // ChannelManager may generate duplicate claims/fails due to HTLC update events from
+               // on-chain ChannelsMonitors during block rescan. Ideally we'd figure out a way to drop
+               // these, but for now we just have to treat them as normal.
+
                let mut pending_idx = std::usize::MAX;
                for (idx, htlc) in self.pending_inbound_htlcs.iter().enumerate() {
                        if htlc.htlc_id == htlc_id_arg {
-                               if let InboundHTLCState::Committed = htlc.state {
-                               } else {
-                                       debug_assert!(false, "Have an inbound HTLC we tried to fail before it was fully committed to");
-                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+                               match htlc.state {
+                                       InboundHTLCState::Committed => {},
+                                       InboundHTLCState::LocalRemoved(_) => {
+                                               return Ok(None);
+                                       },
+                                       _ => {
+                                               debug_assert!(false, "Have an inbound HTLC we tried to claim before it was fully committed to");
+                                               return Err(ChannelError::Ignore("Unable to find a pending HTLC which matchd the given HTLC ID"));
+                                       }
                                }
                                pending_idx = idx;
                        }
                }
                if pending_idx == std::usize::MAX {
-                       debug_assert!(false, "Unable to find a pending HTLC which matched the given HTLC ID");
-                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+                       return Err(ChannelError::Ignore("Unable to find a pending HTLC which matched the given HTLC ID"));
                }
 
                // Now update local state:
@@ -1245,14 +1280,12 @@ impl Channel {
                                match pending_update {
                                        &HTLCUpdateAwaitingACK::ClaimHTLC { htlc_id, .. } => {
                                                if htlc_id_arg == htlc_id {
-                                                       debug_assert!(false, "Unable to find a pending HTLC which matched the given HTLC ID");
-                                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+                                                       return Err(ChannelError::Ignore("Unable to find a pending HTLC which matched the given HTLC ID"));
                                                }
                                        },
                                        &HTLCUpdateAwaitingACK::FailHTLC { htlc_id, .. } => {
                                                if htlc_id_arg == htlc_id {
-                                                       debug_assert!(false, "Tried to fail an HTLC that we already had a pending failure for");
-                                                       return Ok(None);
+                                                       return Err(ChannelError::Ignore("Unable to find a pending HTLC which matched the given HTLC ID"));
                                                }
                                        },
                                        _ => {}
@@ -1277,7 +1310,7 @@ impl Channel {
                }))
        }
 
-       pub fn get_update_fail_htlc_and_commit(&mut self, htlc_id: u64, err_packet: msgs::OnionErrorPacket) -> Result<Option<(msgs::UpdateFailHTLC, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
+       pub fn get_update_fail_htlc_and_commit(&mut self, htlc_id: u64, err_packet: msgs::OnionErrorPacket) -> Result<Option<(msgs::UpdateFailHTLC, msgs::CommitmentSigned, ChannelMonitor)>, ChannelError> {
                match self.get_update_fail_htlc(htlc_id, err_packet)? {
                        Some(update_fail_htlc) => {
                                let (commitment, monitor_update) = self.send_commitment_no_status_check()?;
@@ -1373,33 +1406,36 @@ impl Channel {
                Ok(())
        }
 
-       fn funding_created_signature(&mut self, sig: &Signature) -> Result<(Transaction, Signature), HandleError> {
+       fn funding_created_signature(&mut self, sig: &Signature) -> Result<(Transaction, Transaction, Signature, TxCreationKeys), ChannelError> {
                let funding_script = self.get_funding_redeemscript();
 
                let local_keys = self.build_local_transaction_keys(self.cur_local_commitment_transaction_number)?;
-               let local_initial_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, self.feerate_per_kw).0;
+               let mut local_initial_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, self.feerate_per_kw).0;
                let local_sighash = Message::from_slice(&bip143::SighashComponents::new(&local_initial_commitment_tx).sighash_all(&local_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
-               // They sign the "local" commitment transaction, allowing us to broadcast the tx if we wish.
-               secp_call!(self.secp_ctx.verify(&local_sighash, &sig, &self.their_funding_pubkey.unwrap()), "Invalid funding_created signature from peer", self.channel_id());
+               // They sign the "local" commitment transaction...
+               secp_check!(self.secp_ctx.verify(&local_sighash, &sig, &self.their_funding_pubkey.unwrap()), "Invalid funding_created signature from peer");
+
+               // ...and we sign it, allowing us to broadcast the tx if we wish
+               self.sign_commitment_transaction(&mut local_initial_commitment_tx, sig);
 
                let remote_keys = self.build_remote_transaction_keys()?;
                let remote_initial_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, false, self.feerate_per_kw).0;
                let remote_sighash = Message::from_slice(&bip143::SighashComponents::new(&remote_initial_commitment_tx).sighash_all(&remote_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
                // We sign the "remote" commitment transaction, allowing them to broadcast the tx if they wish.
-               Ok((remote_initial_commitment_tx, self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key)))
+               Ok((remote_initial_commitment_tx, local_initial_commitment_tx, self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key), local_keys))
        }
 
-       pub fn funding_created(&mut self, msg: &msgs::FundingCreated) -> Result<(msgs::FundingSigned, ChannelMonitor), HandleError> {
+       pub fn funding_created(&mut self, msg: &msgs::FundingCreated) -> Result<(msgs::FundingSigned, ChannelMonitor), ChannelError> {
                if self.channel_outbound {
-                       return Err(HandleError{err: "Received funding_created for an outbound channel?", action: Some(msgs::ErrorAction::SendErrorMessage {msg: msgs::ErrorMessage {channel_id: self.channel_id, data: "Received funding_created for an outbound channel?".to_string()}})});
+                       return Err(ChannelError::Close("Received funding_created for an outbound channel?"));
                }
                if self.channel_state != (ChannelState::OurInitSent as u32 | ChannelState::TheirInitSent as u32) {
                        // BOLT 2 says that if we disconnect before we send funding_signed we SHOULD NOT
                        // remember the channel, so its safe to just send an error_message here and drop the
                        // channel.
-                       return Err(HandleError{err: "Received funding_created after we got the channel!", action: Some(msgs::ErrorAction::SendErrorMessage {msg: msgs::ErrorMessage {channel_id: self.channel_id, data: "Received funding_created after we got the channel!".to_string()}})});
+                       return Err(ChannelError::Close("Received funding_created after we got the channel!"));
                }
                if self.channel_monitor.get_min_seen_secret() != (1 << 48) ||
                                self.cur_remote_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER ||
@@ -1411,7 +1447,7 @@ impl Channel {
                let funding_txo_script = self.get_funding_redeemscript().to_v0_p2wsh();
                self.channel_monitor.set_funding_info((funding_txo, funding_txo_script));
 
-               let (remote_initial_commitment_tx, our_signature) = match self.funding_created_signature(&msg.signature) {
+               let (remote_initial_commitment_tx, local_initial_commitment_tx, our_signature, local_keys) = match self.funding_created_signature(&msg.signature) {
                        Ok(res) => res,
                        Err(e) => {
                                self.channel_monitor.unset_funding_info();
@@ -1421,7 +1457,9 @@ impl Channel {
 
                // Now that we're past error-generating stuff, update our local state:
 
-               self.channel_monitor.provide_latest_remote_commitment_tx_info(&remote_initial_commitment_tx, Vec::new(), self.cur_remote_commitment_transaction_number);
+               self.channel_monitor.provide_latest_remote_commitment_tx_info(&remote_initial_commitment_tx, Vec::new(), Vec::new(), self.cur_remote_commitment_transaction_number, self.their_cur_commitment_point.unwrap());
+               self.last_local_commitment_txn = vec![local_initial_commitment_tx.clone()];
+               self.channel_monitor.provide_latest_local_commitment_tx_info(local_initial_commitment_tx, local_keys, self.feerate_per_kw, Vec::new(), Vec::new());
                self.channel_state = ChannelState::FundingSent as u32;
                self.channel_id = funding_txo.to_channel_id();
                self.cur_remote_commitment_transaction_number -= 1;
@@ -1435,12 +1473,12 @@ impl Channel {
 
        /// Handles a funding_signed message from the remote end.
        /// If this call is successful, broadcast the funding transaction (and not before!)
-       pub fn funding_signed(&mut self, msg: &msgs::FundingSigned) -> Result<ChannelMonitor, HandleError> {
+       pub fn funding_signed(&mut self, msg: &msgs::FundingSigned) -> Result<ChannelMonitor, ChannelError> {
                if !self.channel_outbound {
-                       return Err(HandleError{err: "Received funding_signed for an inbound channel?", action: None});
+                       return Err(ChannelError::Close("Received funding_signed for an inbound channel?"));
                }
                if self.channel_state != ChannelState::FundingCreated as u32 {
-                       return Err(HandleError{err: "Received funding_signed in strange state!", action: None});
+                       return Err(ChannelError::Close("Received funding_signed in strange state!"));
                }
                if self.channel_monitor.get_min_seen_secret() != (1 << 48) ||
                                self.cur_remote_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER - 1 ||
@@ -1455,10 +1493,10 @@ impl Channel {
                let local_sighash = Message::from_slice(&bip143::SighashComponents::new(&local_initial_commitment_tx).sighash_all(&local_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
                // They sign the "local" commitment transaction, allowing us to broadcast the tx if we wish.
-               secp_call!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid funding_signed signature from peer", self.channel_id());
+               secp_check!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid funding_signed signature from peer");
 
                self.sign_commitment_transaction(&mut local_initial_commitment_tx, &msg.signature);
-               self.channel_monitor.provide_latest_local_commitment_tx_info(local_initial_commitment_tx.clone(), local_keys, self.feerate_per_kw, Vec::new());
+               self.channel_monitor.provide_latest_local_commitment_tx_info(local_initial_commitment_tx.clone(), local_keys, self.feerate_per_kw, Vec::new(), Vec::new());
                self.last_local_commitment_txn = vec![local_initial_commitment_tx];
                self.channel_state = ChannelState::FundingSent as u32;
                self.cur_local_commitment_transaction_number -= 1;
@@ -1515,40 +1553,40 @@ impl Channel {
                (self.pending_outbound_htlcs.len() as u32, htlc_outbound_value_msat)
        }
 
-       pub fn update_add_htlc(&mut self, msg: &msgs::UpdateAddHTLC, pending_forward_state: PendingHTLCStatus) -> Result<(), HandleError> {
+       pub fn update_add_htlc(&mut self, msg: &msgs::UpdateAddHTLC, pending_forward_state: PendingHTLCStatus) -> Result<(), ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32 | ChannelState::RemoteShutdownSent as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Got add HTLC message when channel was not in an operational state", action: None});
+                       return Err(ChannelError::Close("Got add HTLC message when channel was not in an operational state"));
                }
                if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
-                       return Err(HandleError{err: "Peer sent update_add_htlc when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent update_add_htlc when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+                       return Err(ChannelError::Close("Peer sent update_add_htlc when we needed a channel_reestablish"));
                }
                if msg.amount_msat > self.channel_value_satoshis * 1000 {
-                       return Err(HandleError{err: "Remote side tried to send more than the total value of the channel", action: None});
+                       return Err(ChannelError::Close("Remote side tried to send more than the total value of the channel"));
                }
                if msg.amount_msat < self.our_htlc_minimum_msat {
-                       return Err(HandleError{err: "Remote side tried to send less than our minimum HTLC value", action: None});
+                       return Err(ChannelError::Close("Remote side tried to send less than our minimum HTLC value"));
                }
 
                let (inbound_htlc_count, htlc_inbound_value_msat) = self.get_inbound_pending_htlc_stats();
                if inbound_htlc_count + 1 > OUR_MAX_HTLCS as u32 {
-                       return Err(HandleError{err: "Remote tried to push more than our max accepted HTLCs", action: None});
+                       return Err(ChannelError::Close("Remote tried to push more than our max accepted HTLCs"));
                }
                //TODO: Spec is unclear if this is per-direction or in total (I assume per direction):
                // Check our_max_htlc_value_in_flight_msat
                if htlc_inbound_value_msat + msg.amount_msat > Channel::get_our_max_htlc_value_in_flight_msat(self.channel_value_satoshis) {
-                       return Err(HandleError{err: "Remote HTLC add would put them over their max HTLC value in flight", action: None});
+                       return Err(ChannelError::Close("Remote HTLC add would put them over their max HTLC value in flight"));
                }
                // Check our_channel_reserve_satoshis (we're getting paid, so they have to at least meet
                // the reserve_satoshis we told them to always have as direct payment so that they lose
                // something if we punish them for broadcasting an old state).
                if htlc_inbound_value_msat + msg.amount_msat + self.value_to_self_msat > (self.channel_value_satoshis - Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis)) * 1000 {
-                       return Err(HandleError{err: "Remote HTLC add would put them over their reserve value", action: None});
+                       return Err(ChannelError::Close("Remote HTLC add would put them over their reserve value"));
                }
                if self.next_remote_htlc_id != msg.htlc_id {
-                       return Err(HandleError{err: "Remote skipped HTLC ID", action: None});
+                       return Err(ChannelError::Close("Remote skipped HTLC ID"));
                }
                if msg.cltv_expiry >= 500000000 {
-                       return Err(HandleError{err: "Remote provided CLTV expiry in seconds instead of block height", action: None});
+                       return Err(ChannelError::Close("Remote provided CLTV expiry in seconds instead of block height"));
                }
 
                //TODO: Check msg.cltv_expiry further? Do this in channel manager?
@@ -1574,7 +1612,7 @@ impl Channel {
 
        /// Marks an outbound HTLC which we have received update_fail/fulfill/malformed
        #[inline]
-       fn mark_outbound_htlc_removed(&mut self, htlc_id: u64, check_preimage: Option<[u8; 32]>, fail_reason: Option<HTLCFailReason>) -> Result<&HTLCSource, ChannelError> {
+       fn mark_outbound_htlc_removed(&mut self, htlc_id: u64, check_preimage: Option<PaymentHash>, fail_reason: Option<HTLCFailReason>) -> Result<&HTLCSource, ChannelError> {
                for htlc in self.pending_outbound_htlcs.iter_mut() {
                        if htlc.htlc_id == htlc_id {
                                match check_preimage {
@@ -1600,7 +1638,7 @@ impl Channel {
                Err(ChannelError::Close("Remote tried to fulfill/fail an HTLC we couldn't find"))
        }
 
-       pub fn update_fulfill_htlc(&mut self, msg: &msgs::UpdateFulfillHTLC) -> Result<&HTLCSource, ChannelError> {
+       pub fn update_fulfill_htlc(&mut self, msg: &msgs::UpdateFulfillHTLC) -> Result<HTLCSource, ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        return Err(ChannelError::Close("Got fulfill HTLC message when channel was not in an operational state"));
                }
@@ -1608,15 +1646,11 @@ impl Channel {
                        return Err(ChannelError::Close("Peer sent update_fulfill_htlc when we needed a channel_reestablish"));
                }
 
-               let mut sha = Sha256::new();
-               sha.input(&msg.payment_preimage);
-               let mut payment_hash = [0; 32];
-               sha.result(&mut payment_hash);
-
-               self.mark_outbound_htlc_removed(msg.htlc_id, Some(payment_hash), None)
+               let payment_hash = PaymentHash(Sha256::hash(&msg.payment_preimage.0[..]).into_inner());
+               self.mark_outbound_htlc_removed(msg.htlc_id, Some(payment_hash), None).map(|source| source.clone())
        }
 
-       pub fn update_fail_htlc(&mut self, msg: &msgs::UpdateFailHTLC, fail_reason: HTLCFailReason) -> Result<&HTLCSource, ChannelError> {
+       pub fn update_fail_htlc(&mut self, msg: &msgs::UpdateFailHTLC, fail_reason: HTLCFailReason) -> Result<(), ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        return Err(ChannelError::Close("Got fail HTLC message when channel was not in an operational state"));
                }
@@ -1624,10 +1658,11 @@ impl Channel {
                        return Err(ChannelError::Close("Peer sent update_fail_htlc when we needed a channel_reestablish"));
                }
 
-               self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))
+               self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))?;
+               Ok(())
        }
 
-       pub fn update_fail_malformed_htlc<'a>(&mut self, msg: &msgs::UpdateFailMalformedHTLC, fail_reason: HTLCFailReason) -> Result<&HTLCSource, ChannelError> {
+       pub fn update_fail_malformed_htlc<'a>(&mut self, msg: &msgs::UpdateFailMalformedHTLC, fail_reason: HTLCFailReason) -> Result<(), ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        return Err(ChannelError::Close("Got fail malformed HTLC message when channel was not in an operational state"));
                }
@@ -1635,37 +1670,54 @@ impl Channel {
                        return Err(ChannelError::Close("Peer sent update_fail_malformed_htlc when we needed a channel_reestablish"));
                }
 
-               self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))
+               self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))?;
+               Ok(())
        }
 
-       pub fn commitment_signed(&mut self, msg: &msgs::CommitmentSigned, fee_estimator: &FeeEstimator) -> Result<(msgs::RevokeAndACK, Option<msgs::CommitmentSigned>, Option<msgs::ClosingSigned>, ChannelMonitor), HandleError> {
+       pub fn commitment_signed(&mut self, msg: &msgs::CommitmentSigned, fee_estimator: &FeeEstimator) -> Result<(msgs::RevokeAndACK, Option<msgs::CommitmentSigned>, Option<msgs::ClosingSigned>, ChannelMonitor), ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Got commitment signed message when channel was not in an operational state", action: None});
+                       return Err(ChannelError::Close("Got commitment signed message when channel was not in an operational state"));
                }
                if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
-                       return Err(HandleError{err: "Peer sent commitment_signed when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent commitment_signed when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+                       return Err(ChannelError::Close("Peer sent commitment_signed when we needed a channel_reestablish"));
                }
                if self.channel_state & BOTH_SIDES_SHUTDOWN_MASK == BOTH_SIDES_SHUTDOWN_MASK && self.last_sent_closing_fee.is_some() {
-                       return Err(HandleError{err: "Peer sent commitment_signed after we'd started exchanging closing_signeds", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent commitment_signed after we'd started exchanging closing_signeds".to_string(), channel_id: msg.channel_id}})});
+                       return Err(ChannelError::Close("Peer sent commitment_signed after we'd started exchanging closing_signeds"));
                }
 
                let funding_script = self.get_funding_redeemscript();
 
                let local_keys = self.build_local_transaction_keys(self.cur_local_commitment_transaction_number)?;
 
+               let mut update_fee = false;
                let feerate_per_kw = if !self.channel_outbound && self.pending_update_fee.is_some() {
+                       update_fee = true;
                        self.pending_update_fee.unwrap()
                } else {
                        self.feerate_per_kw
                };
 
-               let mut local_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, feerate_per_kw);
+               let mut local_commitment_tx = {
+                       let mut commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, feerate_per_kw);
+                       let htlcs_cloned: Vec<_> = commitment_tx.2.drain(..).map(|htlc_source| (htlc_source.0, htlc_source.1.clone(), htlc_source.2)).collect();
+                       (commitment_tx.0, commitment_tx.1, htlcs_cloned)
+               };
                let local_commitment_txid = local_commitment_tx.0.txid();
                let local_sighash = Message::from_slice(&bip143::SighashComponents::new(&local_commitment_tx.0).sighash_all(&local_commitment_tx.0.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
-               secp_call!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid commitment tx signature from peer", self.channel_id());
+               secp_check!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid commitment tx signature from peer");
+
+               //If channel fee was updated by funder confirm funder can afford the new fee rate when applied to the current local commitment transaction
+               if update_fee {
+                       let num_htlcs = local_commitment_tx.1.len();
+                       let total_fee: u64 = feerate_per_kw as u64 * (COMMITMENT_TX_BASE_WEIGHT + (num_htlcs as u64) * COMMITMENT_TX_WEIGHT_PER_HTLC) / 1000;
+
+                       if self.channel_value_satoshis - self.value_to_self_msat / 1000 < total_fee + self.their_channel_reserve_satoshis {
+                               return Err(ChannelError::Close("Funding remote cannot afford proposed new fee"));
+                       }
+               }
 
                if msg.htlc_signatures.len() != local_commitment_tx.1.len() {
-                       return Err(HandleError{err: "Got wrong number of HTLC signatures from remote", action: None});
+                       return Err(ChannelError::Close("Got wrong number of HTLC signatures from remote"));
                }
 
                let mut new_local_commitment_txn = Vec::with_capacity(local_commitment_tx.1.len() + 1);
@@ -1673,19 +1725,19 @@ impl Channel {
                new_local_commitment_txn.push(local_commitment_tx.0.clone());
 
                let mut htlcs_and_sigs = Vec::with_capacity(local_commitment_tx.1.len());
-               for (idx, ref htlc) in local_commitment_tx.1.iter().enumerate() {
-                       let mut htlc_tx = self.build_htlc_transaction(&local_commitment_txid, htlc, true, &local_keys, feerate_per_kw);
+               for (idx, htlc) in local_commitment_tx.1.drain(..).enumerate() {
+                       let mut htlc_tx = self.build_htlc_transaction(&local_commitment_txid, &htlc, true, &local_keys, feerate_per_kw);
                        let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &local_keys);
                        let htlc_sighash = Message::from_slice(&bip143::SighashComponents::new(&htlc_tx).sighash_all(&htlc_tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
-                       secp_call!(self.secp_ctx.verify(&htlc_sighash, &msg.htlc_signatures[idx], &local_keys.b_htlc_key), "Invalid HTLC tx siganture from peer", self.channel_id());
+                       secp_check!(self.secp_ctx.verify(&htlc_sighash, &msg.htlc_signatures[idx], &local_keys.b_htlc_key), "Invalid HTLC tx signature from peer");
                        let htlc_sig = if htlc.offered {
-                               let htlc_sig = self.sign_htlc_transaction(&mut htlc_tx, &msg.htlc_signatures[idx], &None, htlc, &local_keys)?;
+                               let htlc_sig = self.sign_htlc_transaction(&mut htlc_tx, &msg.htlc_signatures[idx], &None, &htlc, &local_keys)?;
                                new_local_commitment_txn.push(htlc_tx);
                                htlc_sig
                        } else {
-                               self.create_htlc_tx_signature(&htlc_tx, htlc, &local_keys)?.1
+                               self.create_htlc_tx_signature(&htlc_tx, &htlc, &local_keys)?.1
                        };
-                       htlcs_and_sigs.push(((*htlc).clone(), msg.htlc_signatures[idx], htlc_sig));
+                       htlcs_and_sigs.push((htlc, msg.htlc_signatures[idx], htlc_sig));
                }
 
                let next_per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(self.cur_local_commitment_transaction_number - 1));
@@ -1705,13 +1757,14 @@ impl Channel {
                                }
                        }
                }
+
                if self.channel_state & (ChannelState::MonitorUpdateFailed as u32) == 0 {
                        // This is a response to our post-monitor-failed unfreeze messages, so we can clear the
                        // monitor_pending_order requirement as we won't re-send the monitor_pending messages.
                        self.monitor_pending_order = None;
                }
 
-               self.channel_monitor.provide_latest_local_commitment_tx_info(local_commitment_tx.0, local_keys, self.feerate_per_kw, htlcs_and_sigs);
+               self.channel_monitor.provide_latest_local_commitment_tx_info(local_commitment_tx.0, local_keys, self.feerate_per_kw, htlcs_and_sigs, local_commitment_tx.2);
 
                for htlc in self.pending_inbound_htlcs.iter_mut() {
                        let new_forward = if let &InboundHTLCState::RemoteAnnounced(ref forward_info) = &htlc.state {
@@ -1736,7 +1789,7 @@ impl Channel {
                if (self.channel_state & ChannelState::MonitorUpdateFailed as u32) != 0 {
                        self.monitor_pending_revoke_and_ack = true;
                        self.monitor_pending_commitment_signed |= need_our_commitment;
-                       return Err(HandleError{err: "Previous monitor update failure prevented generation of RAA", action: Some(ErrorAction::IgnoreError)});
+                       return Err(ChannelError::Ignore("Previous monitor update failure prevented generation of RAA"));
                }
 
                let (our_commitment_signed, monitor_update, closing_signed) = if need_our_commitment && (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == 0 {
@@ -1758,7 +1811,7 @@ impl Channel {
 
        /// Used to fulfill holding_cell_htlcs when we get a remote ack (or implicitly get it by them
        /// fulfilling or failing the last pending HTLC)
-       fn free_holding_cell_htlcs(&mut self) -> Result<Option<(msgs::CommitmentUpdate, ChannelMonitor)>, HandleError> {
+       fn free_holding_cell_htlcs(&mut self) -> Result<Option<(msgs::CommitmentUpdate, ChannelMonitor)>, ChannelError> {
                assert_eq!(self.channel_state & ChannelState::MonitorUpdateFailed as u32, 0);
                if self.holding_cell_htlc_updates.len() != 0 || self.holding_cell_update_fee.is_some() {
                        let mut htlc_updates = Vec::new();
@@ -1777,19 +1830,19 @@ impl Channel {
                                        self.holding_cell_htlc_updates.push(htlc_update);
                                } else {
                                        match &htlc_update {
-                                               &HTLCUpdateAwaitingACK::AddHTLC {amount_msat, cltv_expiry, payment_hash, ref source, ref onion_routing_packet, ..} => {
-                                                       match self.send_htlc(amount_msat, payment_hash, cltv_expiry, source.clone(), onion_routing_packet.clone()) {
+                                               &HTLCUpdateAwaitingACK::AddHTLC {amount_msat, cltv_expiry, ref payment_hash, ref source, ref onion_routing_packet, ..} => {
+                                                       match self.send_htlc(amount_msat, *payment_hash, cltv_expiry, source.clone(), onion_routing_packet.clone()) {
                                                                Ok(update_add_msg_option) => update_add_htlcs.push(update_add_msg_option.unwrap()),
                                                                Err(e) => {
                                                                        err = Some(e);
                                                                }
                                                        }
                                                },
-                                               &HTLCUpdateAwaitingACK::ClaimHTLC { payment_preimage, htlc_id, .. } => {
-                                                       match self.get_update_fulfill_htlc(htlc_id, payment_preimage) {
+                                               &HTLCUpdateAwaitingACK::ClaimHTLC { ref payment_preimage, htlc_id, .. } => {
+                                                       match self.get_update_fulfill_htlc(htlc_id, *payment_preimage) {
                                                                Ok(update_fulfill_msg_option) => update_fulfill_htlcs.push(update_fulfill_msg_option.0.unwrap()),
                                                                Err(e) => {
-                                                                       if let Some(msgs::ErrorAction::IgnoreError) = e.action {}
+                                                                       if let ChannelError::Ignore(_) = e {}
                                                                        else {
                                                                                panic!("Got a non-IgnoreError action trying to fulfill holding cell HTLC");
                                                                        }
@@ -1800,7 +1853,7 @@ impl Channel {
                                                        match self.get_update_fail_htlc(htlc_id, err_packet.clone()) {
                                                                Ok(update_fail_msg_option) => update_fail_htlcs.push(update_fail_msg_option.unwrap()),
                                                                Err(e) => {
-                                                                       if let Some(msgs::ErrorAction::IgnoreError) = e.action {}
+                                                                       if let ChannelError::Ignore(_) = e {}
                                                                        else {
                                                                                panic!("Got a non-IgnoreError action trying to fail holding cell HTLC");
                                                                        }
@@ -1854,23 +1907,24 @@ impl Channel {
        /// waiting on this revoke_and_ack. The generation of this new commitment_signed may also fail,
        /// generating an appropriate error *after* the channel state has been updated based on the
        /// revoke_and_ack message.
-       pub fn revoke_and_ack(&mut self, msg: &msgs::RevokeAndACK, fee_estimator: &FeeEstimator) -> Result<(Option<msgs::CommitmentUpdate>, Vec<(PendingForwardHTLCInfo, u64)>, Vec<(HTLCSource, [u8; 32], HTLCFailReason)>, Option<msgs::ClosingSigned>, ChannelMonitor), HandleError> {
+       pub fn revoke_and_ack(&mut self, msg: &msgs::RevokeAndACK, fee_estimator: &FeeEstimator) -> Result<(Option<msgs::CommitmentUpdate>, Vec<(PendingForwardHTLCInfo, u64)>, Vec<(HTLCSource, PaymentHash, HTLCFailReason)>, Option<msgs::ClosingSigned>, ChannelMonitor), ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Got revoke/ACK message when channel was not in an operational state", action: None});
+                       return Err(ChannelError::Close("Got revoke/ACK message when channel was not in an operational state"));
                }
                if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
-                       return Err(HandleError{err: "Peer sent revoke_and_ack when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent revoke_and_ack when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+                       return Err(ChannelError::Close("Peer sent revoke_and_ack when we needed a channel_reestablish"));
                }
                if self.channel_state & BOTH_SIDES_SHUTDOWN_MASK == BOTH_SIDES_SHUTDOWN_MASK && self.last_sent_closing_fee.is_some() {
-                       return Err(HandleError{err: "Peer sent revoke_and_ack after we'd started exchanging closing_signeds", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent revoke_and_ack after we'd started exchanging closing_signeds".to_string(), channel_id: msg.channel_id}})});
+                       return Err(ChannelError::Close("Peer sent revoke_and_ack after we'd started exchanging closing_signeds"));
                }
 
                if let Some(their_prev_commitment_point) = self.their_prev_commitment_point {
-                       if PublicKey::from_secret_key(&self.secp_ctx, &secp_call!(SecretKey::from_slice(&self.secp_ctx, &msg.per_commitment_secret), "Peer provided an invalid per_commitment_secret", self.channel_id())) != their_prev_commitment_point {
-                               return Err(HandleError{err: "Got a revoke commitment secret which didn't correspond to their current pubkey", action: None});
+                       if PublicKey::from_secret_key(&self.secp_ctx, &secp_check!(SecretKey::from_slice(&self.secp_ctx, &msg.per_commitment_secret), "Peer provided an invalid per_commitment_secret")) != their_prev_commitment_point {
+                               return Err(ChannelError::Close("Got a revoke commitment secret which didn't correspond to their current pubkey"));
                        }
                }
-               self.channel_monitor.provide_secret(self.cur_remote_commitment_transaction_number + 1, msg.per_commitment_secret, Some((self.cur_remote_commitment_transaction_number - 1, msg.next_per_commitment_point)))?;
+               self.channel_monitor.provide_secret(self.cur_remote_commitment_transaction_number + 1, msg.per_commitment_secret)
+                       .map_err(|e| ChannelError::Close(e.0))?;
 
                // Update state now that we've passed all the can-fail calls...
                // (note that we may still fail to generate the new commitment_signed message, but that's
@@ -2047,7 +2101,7 @@ impl Channel {
                })
        }
 
-       pub fn send_update_fee_and_commit(&mut self, feerate_per_kw: u64) -> Result<Option<(msgs::UpdateFee, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
+       pub fn send_update_fee_and_commit(&mut self, feerate_per_kw: u64) -> Result<Option<(msgs::UpdateFee, msgs::CommitmentSigned, ChannelMonitor)>, ChannelError> {
                match self.send_update_fee(feerate_per_kw) {
                        Some(update_fee) => {
                                let (commitment_signed, monitor_update) = self.send_commitment_no_status_check()?;
@@ -2063,7 +2117,7 @@ impl Channel {
        /// implicitly dropping) and the payment_hashes of HTLCs we tried to add but are dropping.
        /// No further message handling calls may be made until a channel_reestablish dance has
        /// completed.
-       pub fn remove_uncommitted_htlcs_and_mark_paused(&mut self) -> Vec<(HTLCSource, [u8; 32])> {
+       pub fn remove_uncommitted_htlcs_and_mark_paused(&mut self) -> Vec<(HTLCSource, PaymentHash)> {
                let mut outbound_drops = Vec::new();
 
                assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
@@ -2071,6 +2125,9 @@ impl Channel {
                        self.channel_state = ChannelState::ShutdownComplete as u32;
                        return outbound_drops;
                }
+               // Upon reconnect we have to start the closing_signed dance over, but shutdown messages
+               // will be retransmitted.
+               self.last_sent_closing_fee = None;
 
                let mut inbound_drop_count = 0;
                self.pending_inbound_htlcs.retain(|htlc| {
@@ -2130,7 +2187,7 @@ impl Channel {
        /// commitment update or a revoke_and_ack generation). The messages which were generated from
        /// that original call must *not* have been sent to the remote end, and must instead have been
        /// dropped. They will be regenerated when monitor_updating_restored is called.
-       pub fn monitor_update_failed(&mut self, order: RAACommitmentOrder) {
+       pub fn monitor_update_failed(&mut self, order: RAACommitmentOrder, mut pending_forwards: Vec<(PendingForwardHTLCInfo, u64)>, mut pending_fails: Vec<(HTLCSource, PaymentHash, HTLCFailReason)>, raa_first_dropped_cs: bool) {
                assert_eq!(self.channel_state & ChannelState::MonitorUpdateFailed as u32, 0);
                match order {
                        RAACommitmentOrder::CommitmentFirst => {
@@ -2139,9 +2196,13 @@ impl Channel {
                        },
                        RAACommitmentOrder::RevokeAndACKFirst => {
                                self.monitor_pending_revoke_and_ack = true;
-                               self.monitor_pending_commitment_signed = false;
+                               self.monitor_pending_commitment_signed = raa_first_dropped_cs;
                        },
                }
+               assert!(self.monitor_pending_forwards.is_empty());
+               mem::swap(&mut pending_forwards, &mut self.monitor_pending_forwards);
+               assert!(self.monitor_pending_failures.is_empty());
+               mem::swap(&mut pending_fails, &mut self.monitor_pending_failures);
                self.monitor_pending_order = Some(order);
                self.channel_state |= ChannelState::MonitorUpdateFailed as u32;
        }
@@ -2149,7 +2210,7 @@ impl Channel {
        /// Indicates that the latest ChannelMonitor update has been committed by the client
        /// successfully and we should restore normal operation. Returns messages which should be sent
        /// to the remote side.
-       pub fn monitor_updating_restored(&mut self) -> (Option<msgs::RevokeAndACK>, Option<msgs::CommitmentUpdate>, RAACommitmentOrder, Vec<(PendingForwardHTLCInfo, u64)>, Vec<(HTLCSource, [u8; 32], HTLCFailReason)>) {
+       pub fn monitor_updating_restored(&mut self) -> (Option<msgs::RevokeAndACK>, Option<msgs::CommitmentUpdate>, RAACommitmentOrder, Vec<(PendingForwardHTLCInfo, u64)>, Vec<(HTLCSource, PaymentHash, HTLCFailReason)>) {
                assert_eq!(self.channel_state & ChannelState::MonitorUpdateFailed as u32, ChannelState::MonitorUpdateFailed as u32);
                self.channel_state &= !(ChannelState::MonitorUpdateFailed as u32);
 
@@ -2185,7 +2246,6 @@ impl Channel {
                        return Err(ChannelError::Close("Peer sent update_fee when we needed a channel_reestablish"));
                }
                Channel::check_remote_fee(fee_estimator, msg.feerate_per_kw)?;
-
                self.pending_update_fee = Some(msg.feerate_per_kw as u64);
                self.channel_update_count += 1;
                Ok(())
@@ -2258,7 +2318,7 @@ impl Channel {
 
        /// May panic if some calls other than message-handling calls (which will all Err immediately)
        /// have been called between remove_uncommitted_htlcs_and_mark_paused and this call.
-       pub fn channel_reestablish(&mut self, msg: &msgs::ChannelReestablish) -> Result<(Option<msgs::FundingLocked>, Option<msgs::RevokeAndACK>, Option<msgs::CommitmentUpdate>, Option<ChannelMonitor>, RAACommitmentOrder), ChannelError> {
+       pub fn channel_reestablish(&mut self, msg: &msgs::ChannelReestablish) -> Result<(Option<msgs::FundingLocked>, Option<msgs::RevokeAndACK>, Option<msgs::CommitmentUpdate>, Option<ChannelMonitor>, RAACommitmentOrder, Option<msgs::Shutdown>), ChannelError> {
                if self.channel_state & (ChannelState::PeerDisconnected as u32) == 0 {
                        // While BOLT 2 doesn't indicate explicitly we should error this channel here, it
                        // almost certainly indicates we are going to end up out-of-sync in some way, so we
@@ -2266,7 +2326,8 @@ impl Channel {
                        return Err(ChannelError::Close("Peer sent a loose channel_reestablish not after reconnect"));
                }
 
-               if msg.next_local_commitment_number >= INITIAL_COMMITMENT_NUMBER || msg.next_remote_commitment_number >= INITIAL_COMMITMENT_NUMBER {
+               if msg.next_local_commitment_number >= INITIAL_COMMITMENT_NUMBER || msg.next_remote_commitment_number >= INITIAL_COMMITMENT_NUMBER ||
+                       msg.next_local_commitment_number == 0 {
                        return Err(ChannelError::Close("Peer sent a garbage channel_reestablish"));
                }
 
@@ -2274,29 +2335,36 @@ impl Channel {
                // remaining cases either succeed or ErrorMessage-fail).
                self.channel_state &= !(ChannelState::PeerDisconnected as u32);
 
-               if self.channel_state & (ChannelState::FundingSent as u32 | ChannelState::OurFundingLocked as u32) == ChannelState::FundingSent as u32 {
-                       // Short circuit the whole handler as there is nothing we can resend them
-                       return Ok((None, None, None, None, RAACommitmentOrder::CommitmentFirst));
-               }
+               let shutdown_msg = if self.channel_state & (ChannelState::LocalShutdownSent as u32) != 0 {
+                       Some(msgs::Shutdown {
+                               channel_id: self.channel_id,
+                               scriptpubkey: self.get_closing_scriptpubkey(),
+                       })
+               } else { None };
 
-               if msg.next_local_commitment_number == 0 || msg.next_remote_commitment_number == 0 {
-                       if self.channel_state & (ChannelState::FundingSent as u32) != ChannelState::FundingSent as u32 {
-                               return Err(ChannelError::Close("Peer sent a pre-funding channel_reestablish after we exchanged funding_locked"));
+               if self.channel_state & (ChannelState::FundingSent as u32) == ChannelState::FundingSent as u32 {
+                       if self.channel_state & ChannelState::OurFundingLocked as u32 == 0 {
+                               if msg.next_remote_commitment_number != 0 {
+                                       return Err(ChannelError::Close("Peer claimed they saw a revoke_and_ack but we haven't sent funding_locked yet"));
+                               }
+                               // Short circuit the whole handler as there is nothing we can resend them
+                               return Ok((None, None, None, None, RAACommitmentOrder::CommitmentFirst, shutdown_msg));
                        }
+
                        // We have OurFundingLocked set!
                        let next_per_commitment_secret = self.build_local_commitment_secret(self.cur_local_commitment_transaction_number);
                        let next_per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &next_per_commitment_secret);
                        return Ok((Some(msgs::FundingLocked {
                                channel_id: self.channel_id(),
                                next_per_commitment_point: next_per_commitment_point,
-                       }), None, None, None, RAACommitmentOrder::CommitmentFirst));
+                       }), None, None, None, RAACommitmentOrder::CommitmentFirst, shutdown_msg));
                }
 
-               let required_revoke = if msg.next_remote_commitment_number == INITIAL_COMMITMENT_NUMBER - self.cur_local_commitment_transaction_number {
+               let required_revoke = if msg.next_remote_commitment_number + 1 == INITIAL_COMMITMENT_NUMBER - self.cur_local_commitment_transaction_number {
                        // Remote isn't waiting on any RevokeAndACK from us!
                        // Note that if we need to repeat our FundingLocked we'll do that in the next if block.
                        None
-               } else if msg.next_remote_commitment_number == (INITIAL_COMMITMENT_NUMBER - 1) - self.cur_local_commitment_transaction_number {
+               } else if msg.next_remote_commitment_number + 1 == (INITIAL_COMMITMENT_NUMBER - 1) - self.cur_local_commitment_transaction_number {
                        if self.channel_state & (ChannelState::MonitorUpdateFailed as u32) != 0 {
                                self.monitor_pending_revoke_and_ack = true;
                                None
@@ -2343,20 +2411,13 @@ impl Channel {
                                // have received some updates while we were disconnected. Free the holding cell
                                // now!
                                match self.free_holding_cell_htlcs() {
-                                       Err(e) => {
-                                               if let &Some(msgs::ErrorAction::DisconnectPeer{msg: Some(_)}) = &e.action {
-                                                       return Err(ChannelError::Close(e.err));
-                                               } else if let &Some(msgs::ErrorAction::SendErrorMessage{msg: _}) = &e.action {
-                                                       return Err(ChannelError::Close(e.err));
-                                               } else {
-                                                       panic!("Got non-channel-failing result from free_holding_cell_htlcs");
-                                               }
-                                       },
-                                       Ok(Some((commitment_update, channel_monitor))) => return Ok((resend_funding_locked, required_revoke, Some(commitment_update), Some(channel_monitor), order)),
-                                       Ok(None) => return Ok((resend_funding_locked, required_revoke, None, None, order)),
+                                       Err(ChannelError::Close(msg)) => return Err(ChannelError::Close(msg)),
+                                       Err(ChannelError::Ignore(_)) => panic!("Got non-channel-failing result from free_holding_cell_htlcs"),
+                                       Ok(Some((commitment_update, channel_monitor))) => return Ok((resend_funding_locked, required_revoke, Some(commitment_update), Some(channel_monitor), order, shutdown_msg)),
+                                       Ok(None) => return Ok((resend_funding_locked, required_revoke, None, None, order, shutdown_msg)),
                                }
                        } else {
-                               return Ok((resend_funding_locked, required_revoke, None, None, order));
+                               return Ok((resend_funding_locked, required_revoke, None, None, order, shutdown_msg));
                        }
                } else if msg.next_local_commitment_number == our_next_remote_commitment_number - 1 {
                        if required_revoke.is_some() {
@@ -2370,10 +2431,10 @@ impl Channel {
 
                        if self.channel_state & (ChannelState::MonitorUpdateFailed as u32) != 0 {
                                self.monitor_pending_commitment_signed = true;
-                               return Ok((resend_funding_locked, None, None, None, order));
+                               return Ok((resend_funding_locked, None, None, None, order, shutdown_msg));
                        }
 
-                       return Ok((resend_funding_locked, required_revoke, Some(self.get_last_commitment_update()), None, order));
+                       return Ok((resend_funding_locked, required_revoke, Some(self.get_last_commitment_update()), None, order, shutdown_msg));
                } else {
                        return Err(ChannelError::Close("Peer attempted to reestablish channel with a very old remote commitment transaction"));
                }
@@ -2382,8 +2443,7 @@ impl Channel {
        fn maybe_propose_first_closing_signed(&mut self, fee_estimator: &FeeEstimator) -> Option<msgs::ClosingSigned> {
                if !self.channel_outbound || !self.pending_inbound_htlcs.is_empty() || !self.pending_outbound_htlcs.is_empty() ||
                                self.channel_state & (BOTH_SIDES_SHUTDOWN_MASK | ChannelState::AwaitingRemoteRevoke as u32) != BOTH_SIDES_SHUTDOWN_MASK ||
-                               self.last_sent_closing_fee.is_some() ||
-                               self.cur_remote_commitment_transaction_number != self.cur_local_commitment_transaction_number{
+                               self.last_sent_closing_fee.is_some() || self.pending_update_fee.is_some() {
                        return None;
                }
 
@@ -2406,7 +2466,7 @@ impl Channel {
                })
        }
 
-       pub fn shutdown(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::Shutdown) -> Result<(Option<msgs::Shutdown>, Option<msgs::ClosingSigned>, Vec<(HTLCSource, [u8; 32])>), ChannelError> {
+       pub fn shutdown(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::Shutdown) -> Result<(Option<msgs::Shutdown>, Option<msgs::ClosingSigned>, Vec<(HTLCSource, PaymentHash)>), ChannelError> {
                if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
                        return Err(ChannelError::Close("Peer sent shutdown when we needed a channel_reestablish"));
                }
@@ -2421,9 +2481,6 @@ impl Channel {
                                return Err(ChannelError::Close("Got shutdown with remote pending HTLCs"));
                        }
                }
-               if (self.channel_state & ChannelState::RemoteShutdownSent as u32) == ChannelState::RemoteShutdownSent as u32 {
-                       return Err(ChannelError::Ignore("Remote peer sent duplicate shutdown message"));
-               }
                assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
 
                // BOLT 2 says we must only send a scriptpubkey of certain standard forms, which are up to
@@ -2482,24 +2539,24 @@ impl Channel {
                Ok((our_shutdown, self.maybe_propose_first_closing_signed(fee_estimator), dropped_outbound_htlcs))
        }
 
-       pub fn closing_signed(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::ClosingSigned) -> Result<(Option<msgs::ClosingSigned>, Option<Transaction>), HandleError> {
+       pub fn closing_signed(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::ClosingSigned) -> Result<(Option<msgs::ClosingSigned>, Option<Transaction>), ChannelError> {
                if self.channel_state & BOTH_SIDES_SHUTDOWN_MASK != BOTH_SIDES_SHUTDOWN_MASK {
-                       return Err(HandleError{err: "Remote end sent us a closing_signed before both sides provided a shutdown", action: None});
+                       return Err(ChannelError::Close("Remote end sent us a closing_signed before both sides provided a shutdown"));
                }
                if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
-                       return Err(HandleError{err: "Peer sent closing_signed when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent closing_signed when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+                       return Err(ChannelError::Close("Peer sent closing_signed when we needed a channel_reestablish"));
                }
                if !self.pending_inbound_htlcs.is_empty() || !self.pending_outbound_htlcs.is_empty() {
-                       return Err(HandleError{err: "Remote end sent us a closing_signed while there were still pending HTLCs", action: None});
+                       return Err(ChannelError::Close("Remote end sent us a closing_signed while there were still pending HTLCs"));
                }
                if msg.fee_satoshis > 21000000 * 10000000 { //this is required to stop potential overflow in build_closing_transaction
-                       return Err(HandleError{err: "Remote tried to send us a closing tx with > 21 million BTC fee", action: None});
+                       return Err(ChannelError::Close("Remote tried to send us a closing tx with > 21 million BTC fee"));
                }
 
                let funding_redeemscript = self.get_funding_redeemscript();
                let (mut closing_tx, used_total_fee) = self.build_closing_transaction(msg.fee_satoshis, false);
                if used_total_fee != msg.fee_satoshis {
-                       return Err(HandleError{err: "Remote sent us a closing_signed with a fee greater than the value they can claim", action: None});
+                       return Err(ChannelError::Close("Remote sent us a closing_signed with a fee greater than the value they can claim"));
                }
                let mut sighash = Message::from_slice(&bip143::SighashComponents::new(&closing_tx).sighash_all(&closing_tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
 
@@ -2510,7 +2567,7 @@ impl Channel {
                                // limits, so check for that case by re-checking the signature here.
                                closing_tx = self.build_closing_transaction(msg.fee_satoshis, true).0;
                                sighash = Message::from_slice(&bip143::SighashComponents::new(&closing_tx).sighash_all(&closing_tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
-                               secp_call!(self.secp_ctx.verify(&sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid closing tx signature from peer", self.channel_id());
+                               secp_check!(self.secp_ctx.verify(&sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid closing tx signature from peer");
                        },
                };
 
@@ -2544,7 +2601,7 @@ impl Channel {
                        if proposed_sat_per_kw > our_max_feerate {
                                if let Some((last_feerate, _)) = self.last_sent_closing_fee {
                                        if our_max_feerate <= last_feerate {
-                                               return Err(HandleError{err: "Unable to come to consensus about closing feerate, remote wanted something higher than our Normal feerate", action: None});
+                                               return Err(ChannelError::Close("Unable to come to consensus about closing feerate, remote wanted something higher than our Normal feerate"));
                                        }
                                }
                                propose_new_feerate!(our_max_feerate);
@@ -2554,7 +2611,7 @@ impl Channel {
                        if proposed_sat_per_kw < our_min_feerate {
                                if let Some((last_feerate, _)) = self.last_sent_closing_fee {
                                        if our_min_feerate >= last_feerate {
-                                               return Err(HandleError{err: "Unable to come to consensus about closing feerate, remote wanted something lower than our Background feerate", action: None});
+                                               return Err(ChannelError::Close("Unable to come to consensus about closing feerate, remote wanted something lower than our Background feerate"));
                                        }
                                }
                                propose_new_feerate!(our_min_feerate);
@@ -2754,7 +2811,7 @@ impl Channel {
        /// In case of Err, the channel may have been closed, at which point the standard requirements
        /// apply - no calls may be made except those explicitly stated to be allowed post-shutdown.
        /// Only returns an ErrorAction of DisconnectPeer, if Err.
-       pub fn block_connected(&mut self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) -> Result<Option<msgs::FundingLocked>, HandleError> {
+       pub fn block_connected(&mut self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) -> Result<Option<msgs::FundingLocked>, msgs::ErrorMessage> {
                let non_shutdown_state = self.channel_state & (!MULTI_STATE_FLAGS);
                if header.bitcoin_hash() != self.last_block_connected {
                        self.last_block_connected = header.bitcoin_hash();
@@ -2814,8 +2871,21 @@ impl Channel {
                                                }
                                                self.channel_state = ChannelState::ShutdownComplete as u32;
                                                self.channel_update_count += 1;
-                                               return Err(HandleError{err: "funding tx had wrong script/value", action: Some(ErrorAction::DisconnectPeer{msg: None})});
+                                               return Err(msgs::ErrorMessage {
+                                                       channel_id: self.channel_id(),
+                                                       data: "funding tx had wrong script/value".to_owned()
+                                               });
                                        } else {
+                                               if self.channel_outbound {
+                                                       for input in tx.input.iter() {
+                                                               if input.witness.is_empty() {
+                                                                       // We generated a malleable funding transaction, implying we've
+                                                                       // just exposed ourselves to funds loss to our counterparty.
+                                                                       #[cfg(not(feature = "fuzztarget"))]
+                                                                       panic!("Client called ChannelManager::funding_transaction_generated with bogus transaction!");
+                                                               }
+                                                       }
+                                               }
                                                self.funding_tx_confirmations = 1;
                                                self.short_channel_id = Some(((height as u64)          << (5*8)) |
                                                                             ((*index_in_block as u64) << (2*8)) |
@@ -2917,7 +2987,8 @@ impl Channel {
                }
        }
 
-       fn get_outbound_funding_created_signature(&mut self) -> Result<(Signature, Transaction), HandleError> {
+       /// If an Err is returned, it is a ChannelError::Close (for get_outbound_funding_created)
+       fn get_outbound_funding_created_signature(&mut self) -> Result<(Signature, Transaction), ChannelError> {
                let funding_script = self.get_funding_redeemscript();
 
                let remote_keys = self.build_remote_transaction_keys()?;
@@ -2934,7 +3005,8 @@ impl Channel {
        /// or if called on an inbound channel.
        /// Note that channel_id changes during this call!
        /// Do NOT broadcast the funding transaction until after a successful funding_signed call!
-       pub fn get_outbound_funding_created(&mut self, funding_txo: OutPoint) -> Result<(msgs::FundingCreated, ChannelMonitor), HandleError> {
+       /// If an Err is returned, it is a ChannelError::Close.
+       pub fn get_outbound_funding_created(&mut self, funding_txo: OutPoint) -> Result<(msgs::FundingCreated, ChannelMonitor), ChannelError> {
                if !self.channel_outbound {
                        panic!("Tried to create outbound funding_created message on an inbound channel!");
                }
@@ -2953,7 +3025,7 @@ impl Channel {
                let (our_signature, commitment_tx) = match self.get_outbound_funding_created_signature() {
                        Ok(res) => res,
                        Err(e) => {
-                               log_error!(self, "Got bad signatures: {}!", e.err);
+                               log_error!(self, "Got bad signatures: {:?}!", e);
                                self.channel_monitor.unset_funding_info();
                                return Err(e);
                        }
@@ -2962,7 +3034,7 @@ impl Channel {
                let temporary_channel_id = self.channel_id;
 
                // Now that we're past error-generating stuff, update our local state:
-               self.channel_monitor.provide_latest_remote_commitment_tx_info(&commitment_tx, Vec::new(), self.cur_remote_commitment_transaction_number);
+               self.channel_monitor.provide_latest_remote_commitment_tx_info(&commitment_tx, Vec::new(), Vec::new(), self.cur_remote_commitment_transaction_number, self.their_cur_commitment_point.unwrap());
                self.channel_state = ChannelState::FundingCreated as u32;
                self.channel_id = funding_txo.to_channel_id();
                self.cur_remote_commitment_transaction_number -= 1;
@@ -3018,11 +3090,27 @@ impl Channel {
        /// self.remove_uncommitted_htlcs_and_mark_paused()'d
        pub fn get_channel_reestablish(&self) -> msgs::ChannelReestablish {
                assert_eq!(self.channel_state & ChannelState::PeerDisconnected as u32, ChannelState::PeerDisconnected as u32);
+               assert_ne!(self.cur_remote_commitment_transaction_number, INITIAL_COMMITMENT_NUMBER);
                msgs::ChannelReestablish {
                        channel_id: self.channel_id(),
+                       // The protocol has two different commitment number concepts - the "commitment
+                       // transaction number", which starts from 0 and counts up, and the "revocation key
+                       // index" which starts at INITIAL_COMMITMENT_NUMBER and counts down. We track
+                       // commitment transaction numbers by the index which will be used to reveal the
+                       // revocation key for that commitment transaction, which means we have to convert them
+                       // to protocol-level commitment numbers here...
+
+                       // next_local_commitment_number is the next commitment_signed number we expect to
+                       // receive (indicating if they need to resend one that we missed).
                        next_local_commitment_number: INITIAL_COMMITMENT_NUMBER - self.cur_local_commitment_transaction_number,
-                       next_remote_commitment_number: INITIAL_COMMITMENT_NUMBER - self.cur_remote_commitment_transaction_number -
-                               if self.channel_state & (ChannelState::FundingSent as u32 | ChannelState::OurFundingLocked as u32) == (ChannelState::FundingSent as u32) { 1 } else { 0 },
+                       // We have to set next_remote_commitment_number to the next revoke_and_ack we expect to
+                       // receive, however we track it by the next commitment number for a remote transaction
+                       // (which is one further, as they always revoke previous commitment transaction, not
+                       // the one we send) so we have to decrement by 1. Note that if
+                       // cur_remote_commitment_transaction_number is INITIAL_COMMITMENT_NUMBER we will have
+                       // dropped this channel on disconnect as it hasn't yet reached FundingSent so we can't
+                       // overflow here.
+                       next_remote_commitment_number: INITIAL_COMMITMENT_NUMBER - self.cur_remote_commitment_transaction_number - 1,
                        data_loss_protect: None,
                }
        }
@@ -3036,16 +3124,16 @@ impl Channel {
        /// waiting on the remote peer to send us a revoke_and_ack during which time we cannot add new
        /// HTLCs on the wire or we wouldn't be able to determine what they actually ACK'ed.
        /// You MUST call send_commitment prior to any other calls on this Channel
-       pub fn send_htlc(&mut self, amount_msat: u64, payment_hash: [u8; 32], cltv_expiry: u32, source: HTLCSource, onion_routing_packet: msgs::OnionPacket) -> Result<Option<msgs::UpdateAddHTLC>, HandleError> {
+       pub fn send_htlc(&mut self, amount_msat: u64, payment_hash: PaymentHash, cltv_expiry: u32, source: HTLCSource, onion_routing_packet: msgs::OnionPacket) -> Result<Option<msgs::UpdateAddHTLC>, ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32 | BOTH_SIDES_SHUTDOWN_MASK)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Cannot send HTLC until channel is fully established and we haven't started shutting down", action: None});
+                       return Err(ChannelError::Ignore("Cannot send HTLC until channel is fully established and we haven't started shutting down"));
                }
 
                if amount_msat > self.channel_value_satoshis * 1000 {
-                       return Err(HandleError{err: "Cannot send more than the total value of the channel", action: None});
+                       return Err(ChannelError::Ignore("Cannot send more than the total value of the channel"));
                }
                if amount_msat < self.their_htlc_minimum_msat {
-                       return Err(HandleError{err: "Cannot send less than their minimum HTLC value", action: None});
+                       return Err(ChannelError::Ignore("Cannot send less than their minimum HTLC value"));
                }
 
                if (self.channel_state & (ChannelState::PeerDisconnected as u32 | ChannelState::MonitorUpdateFailed as u32)) != 0 {
@@ -3055,17 +3143,17 @@ impl Channel {
                        // disconnected during the time the previous hop was doing the commitment dance we may
                        // end up getting here after the forwarding delay. In any case, returning an
                        // IgnoreError will get ChannelManager to do the right thing and fail backwards now.
-                       return Err(HandleError{err: "Cannot send an HTLC while disconnected/frozen for channel monitor update", action: Some(ErrorAction::IgnoreError)});
+                       return Err(ChannelError::Ignore("Cannot send an HTLC while disconnected/frozen for channel monitor update"));
                }
 
                let (outbound_htlc_count, htlc_outbound_value_msat) = self.get_outbound_pending_htlc_stats();
                if outbound_htlc_count + 1 > self.their_max_accepted_htlcs as u32 {
-                       return Err(HandleError{err: "Cannot push more than their max accepted HTLCs", action: None});
+                       return Err(ChannelError::Ignore("Cannot push more than their max accepted HTLCs"));
                }
                //TODO: Spec is unclear if this is per-direction or in total (I assume per direction):
                // Check their_max_htlc_value_in_flight_msat
                if htlc_outbound_value_msat + amount_msat > self.their_max_htlc_value_in_flight_msat {
-                       return Err(HandleError{err: "Cannot send value that would put us over our max HTLC value in flight", action: None});
+                       return Err(ChannelError::Ignore("Cannot send value that would put us over our max HTLC value in flight"));
                }
 
                let mut holding_cell_outbound_amount_msat = 0;
@@ -3081,7 +3169,7 @@ impl Channel {
                // Check self.their_channel_reserve_satoshis (the amount we must keep as
                // reserve for them to have something to claim if we misbehave)
                if self.value_to_self_msat < self.their_channel_reserve_satoshis * 1000 + amount_msat + holding_cell_outbound_amount_msat + htlc_outbound_value_msat {
-                       return Err(HandleError{err: "Cannot send value that would put us over our reserve value", action: None});
+                       return Err(ChannelError::Ignore("Cannot send value that would put us over our reserve value"));
                }
 
                //TODO: Check cltv_expiry? Do this in channel manager?
@@ -3124,10 +3212,10 @@ impl Channel {
        }
 
        /// Creates a signed commitment transaction to send to the remote peer.
-       /// Always returns a Channel-failing HandleError::action if an immediately-preceding (read: the
+       /// Always returns a ChannelError::Close if an immediately-preceding (read: the
        /// last call to this Channel) send_htlc returned Ok(Some(_)) and there is an Err.
        /// May panic if called except immediately after a successful, Ok(Some(_))-returning send_htlc.
-       pub fn send_commitment(&mut self) -> Result<(msgs::CommitmentSigned, ChannelMonitor), HandleError> {
+       pub fn send_commitment(&mut self) -> Result<(msgs::CommitmentSigned, ChannelMonitor), ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        panic!("Cannot create commitment tx until channel is fully established");
                }
@@ -3153,7 +3241,7 @@ impl Channel {
                self.send_commitment_no_status_check()
        }
        /// Only fails in case of bad keys
-       fn send_commitment_no_status_check(&mut self) -> Result<(msgs::CommitmentSigned, ChannelMonitor), HandleError> {
+       fn send_commitment_no_status_check(&mut self) -> Result<(msgs::CommitmentSigned, ChannelMonitor), ChannelError> {
                // We can upgrade the status of some HTLCs that are waiting on a commitment, even if we
                // fail to generate this, we still are at least at a position where upgrading their status
                // is acceptable.
@@ -3171,20 +3259,23 @@ impl Channel {
                        }
                }
 
-               match self.send_commitment_no_state_update() {
-                       Ok((res, remote_commitment_tx)) => {
+               let (res, remote_commitment_tx, htlcs, htlc_sources) = match self.send_commitment_no_state_update() {
+                       Ok((res, (remote_commitment_tx, htlcs, mut htlc_sources))) => {
                                // Update state now that we've passed all the can-fail calls...
-                               self.channel_monitor.provide_latest_remote_commitment_tx_info(&remote_commitment_tx.0, remote_commitment_tx.1, self.cur_remote_commitment_transaction_number);
-                               self.channel_state |= ChannelState::AwaitingRemoteRevoke as u32;
-                               Ok((res, self.channel_monitor.clone()))
+                               let htlc_sources_no_ref = htlc_sources.drain(..).map(|htlc_source| (htlc_source.0, htlc_source.1.clone(), htlc_source.2)).collect();
+                               (res, remote_commitment_tx, htlcs, htlc_sources_no_ref)
                        },
-                       Err(e) => Err(e),
-               }
+                       Err(e) => return Err(e),
+               };
+
+               self.channel_monitor.provide_latest_remote_commitment_tx_info(&remote_commitment_tx, htlcs, htlc_sources, self.cur_remote_commitment_transaction_number, self.their_cur_commitment_point.unwrap());
+               self.channel_state |= ChannelState::AwaitingRemoteRevoke as u32;
+               Ok((res, self.channel_monitor.clone()))
        }
 
        /// Only fails in case of bad keys. Used for channel_reestablish commitment_signed generation
        /// when we shouldn't change HTLC/channel state.
-       fn send_commitment_no_state_update(&self) -> Result<(msgs::CommitmentSigned, (Transaction, Vec<HTLCOutputInCommitment>)), HandleError> {
+       fn send_commitment_no_state_update(&self) -> Result<(msgs::CommitmentSigned, (Transaction, Vec<HTLCOutputInCommitment>, Vec<(PaymentHash, &HTLCSource, Option<u32>)>)), ChannelError> {
                let funding_script = self.get_funding_redeemscript();
 
                let mut feerate_per_kw = self.feerate_per_kw;
@@ -3206,7 +3297,7 @@ impl Channel {
                        let htlc_tx = self.build_htlc_transaction(&remote_commitment_txid, htlc, false, &remote_keys, feerate_per_kw);
                        let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &remote_keys);
                        let htlc_sighash = Message::from_slice(&bip143::SighashComponents::new(&htlc_tx).sighash_all(&htlc_tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
-                       let our_htlc_key = secp_derived_key!(chan_utils::derive_private_key(&self.secp_ctx, &remote_keys.per_commitment_point, &self.local_keys.htlc_base_key), self.channel_id());
+                       let our_htlc_key = secp_check!(chan_utils::derive_private_key(&self.secp_ctx, &remote_keys.per_commitment_point, &self.local_keys.htlc_base_key), "Derived invalid key, peer is maliciously selecting parameters");
                        htlc_sigs.push(self.secp_ctx.sign(&htlc_sighash, &our_htlc_key));
                }
 
@@ -3221,7 +3312,7 @@ impl Channel {
        /// to send to the remote peer in one go.
        /// Shorthand for calling send_htlc() followed by send_commitment(), see docs on those for
        /// more info.
-       pub fn send_htlc_and_commit(&mut self, amount_msat: u64, payment_hash: [u8; 32], cltv_expiry: u32, source: HTLCSource, onion_routing_packet: msgs::OnionPacket) -> Result<Option<(msgs::UpdateAddHTLC, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
+       pub fn send_htlc_and_commit(&mut self, amount_msat: u64, payment_hash: PaymentHash, cltv_expiry: u32, source: HTLCSource, onion_routing_packet: msgs::OnionPacket) -> Result<Option<(msgs::UpdateAddHTLC, msgs::CommitmentSigned, ChannelMonitor)>, ChannelError> {
                match self.send_htlc(amount_msat, payment_hash, cltv_expiry, source, onion_routing_packet)? {
                        Some(update_add_htlc) => {
                                let (commitment_signed, monitor_update) = self.send_commitment_no_status_check()?;
@@ -3233,7 +3324,7 @@ impl Channel {
 
        /// Begins the shutdown process, getting a message for the remote peer and returning all
        /// holding cell HTLCs for payment failure.
-       pub fn get_shutdown(&mut self) -> Result<(msgs::Shutdown, Vec<(HTLCSource, [u8; 32])>), APIError> {
+       pub fn get_shutdown(&mut self) -> Result<(msgs::Shutdown, Vec<(HTLCSource, PaymentHash)>), APIError> {
                for htlc in self.pending_outbound_htlcs.iter() {
                        if let OutboundHTLCState::LocalAnnounced(_) = htlc.state {
                                return Err(APIError::APIMisuseError{err: "Cannot begin shutdown with pending HTLCs. Process pending events first"});
@@ -3287,7 +3378,7 @@ impl Channel {
        /// those explicitly stated to be allowed after shutdown completes, eg some simple getters).
        /// Also returns the list of payment_hashes for channels which we can safely fail backwards
        /// immediately (others we will have to allow to time out).
-       pub fn force_shutdown(&mut self) -> (Vec<Transaction>, Vec<(HTLCSource, [u8; 32])>) {
+       pub fn force_shutdown(&mut self) -> (Vec<Transaction>, Vec<(HTLCSource, PaymentHash)>) {
                assert!(self.channel_state != ChannelState::ShutdownComplete as u32);
 
                // We go ahead and "free" any holding cell HTLCs or HTLCs we haven't yet committed to and
@@ -3504,9 +3595,9 @@ impl Writeable for Channel {
 
                (self.last_local_commitment_txn.len() as u64).write(writer)?;
                for tx in self.last_local_commitment_txn.iter() {
-                       if let Err(e) = tx.consensus_encode(&mut RawEncoder::new(WriterWriteAdaptor(writer))) {
+                       if let Err(e) = tx.consensus_encode(&mut WriterWriteAdaptor(writer)) {
                                match e {
-                                       network::serialize::Error::Io(e) => return Err(e),
+                                       encode::Error::Io(e) => return Err(e),
                                        _ => panic!("last_local_commitment_txn must have been well-formed!"),
                                }
                        }
@@ -3683,7 +3774,7 @@ impl<R : ::std::io::Read> ReadableArgs<R, Arc<Logger>> for Channel {
                let last_local_commitment_txn_count: u64 = Readable::read(reader)?;
                let mut last_local_commitment_txn = Vec::with_capacity(cmp::min(last_local_commitment_txn_count as usize, OUR_MAX_HTLCS as usize*2 + 1));
                for _ in 0..last_local_commitment_txn_count {
-                       last_local_commitment_txn.push(match Transaction::consensus_decode(&mut RawDecoder::new(reader.by_ref())) {
+                       last_local_commitment_txn.push(match Transaction::consensus_decode(reader.by_ref()) {
                                Ok(tx) => tx,
                                Err(_) => return Err(DecodeError::InvalidValue),
                        });
@@ -3811,12 +3902,12 @@ impl<R : ::std::io::Read> ReadableArgs<R, Arc<Logger>> for Channel {
 mod tests {
        use bitcoin::util::hash::{Sha256dHash, Hash160};
        use bitcoin::util::bip143;
-       use bitcoin::network::serialize::serialize;
+       use bitcoin::consensus::encode::serialize;
        use bitcoin::blockdata::script::{Script, Builder};
        use bitcoin::blockdata::transaction::Transaction;
        use bitcoin::blockdata::opcodes;
        use hex;
-       use ln::channelmanager::HTLCSource;
+       use ln::channelmanager::{HTLCSource, PaymentPreimage, PaymentHash};
        use ln::channel::{Channel,ChannelKeys,InboundHTLCOutput,OutboundHTLCOutput,InboundHTLCState,OutboundHTLCState,HTLCOutputInCommitment,TxCreationKeys};
        use ln::channel::MAX_FUNDING_SATOSHIS;
        use ln::chan_utils;
@@ -3828,8 +3919,8 @@ mod tests {
        use util::logger::Logger;
        use secp256k1::{Secp256k1,Message,Signature};
        use secp256k1::key::{SecretKey,PublicKey};
-       use crypto::sha2::Sha256;
-       use crypto::digest::Digest;
+       use bitcoin_hashes::sha256::Hash as Sha256;
+       use bitcoin_hashes::Hash;
        use std::sync::Arc;
 
        struct TestFeeEstimator {
@@ -3866,6 +3957,7 @@ mod tests {
                }
 
                fn get_channel_keys(&self, _inbound: bool) -> ChannelKeys { self.chan_keys.clone() }
+               fn get_session_key(&self) -> SecretKey { panic!(); }
        }
 
        #[test]
@@ -3926,14 +4018,17 @@ mod tests {
 
                macro_rules! test_commitment {
                        ( $their_sig_hex: expr, $our_sig_hex: expr, $tx_hex: expr) => {
-                               unsigned_tx = chan.build_commitment_transaction(0xffffffffffff - 42, &keys, true, false, chan.feerate_per_kw);
+                               unsigned_tx = {
+                                       let res = chan.build_commitment_transaction(0xffffffffffff - 42, &keys, true, false, chan.feerate_per_kw);
+                                       (res.0, res.1)
+                               };
                                let their_signature = Signature::from_der(&secp_ctx, &hex::decode($their_sig_hex).unwrap()[..]).unwrap();
                                let sighash = Message::from_slice(&bip143::SighashComponents::new(&unsigned_tx.0).sighash_all(&unsigned_tx.0.input[0], &chan.get_funding_redeemscript(), chan.channel_value_satoshis)[..]).unwrap();
                                secp_ctx.verify(&sighash, &their_signature, &chan.their_funding_pubkey.unwrap()).unwrap();
 
                                chan.sign_commitment_transaction(&mut unsigned_tx.0, &their_signature);
 
-                               assert_eq!(serialize(&unsigned_tx.0).unwrap()[..],
+                               assert_eq!(serialize(&unsigned_tx.0)[..],
                                                hex::decode($tx_hex).unwrap()[..]);
                        };
                }
@@ -3948,17 +4043,12 @@ mod tests {
                                let htlc_sighash = Message::from_slice(&bip143::SighashComponents::new(&htlc_tx).sighash_all(&htlc_tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
                                secp_ctx.verify(&htlc_sighash, &remote_signature, &keys.b_htlc_key).unwrap();
 
-                               let mut preimage: Option<[u8; 32]> = None;
+                               let mut preimage: Option<PaymentPreimage> = None;
                                if !htlc.offered {
                                        for i in 0..5 {
-                                               let mut sha = Sha256::new();
-                                               sha.input(&[i; 32]);
-
-                                               let mut out = [0; 32];
-                                               sha.result(&mut out);
-
+                                               let out = PaymentHash(Sha256::hash(&[i; 32]).into_inner());
                                                if out == htlc.payment_hash {
-                                                       preimage = Some([i; 32]);
+                                                       preimage = Some(PaymentPreimage([i; 32]));
                                                }
                                        }
 
@@ -3966,7 +4056,7 @@ mod tests {
                                }
 
                                chan.sign_htlc_transaction(&mut htlc_tx, &remote_signature, &preimage, &htlc, &keys).unwrap();
-                               assert_eq!(serialize(&htlc_tx).unwrap()[..],
+                               assert_eq!(serialize(&htlc_tx)[..],
                                                hex::decode($tx_hex).unwrap()[..]);
                        };
                }
@@ -3985,12 +4075,10 @@ mod tests {
                                htlc_id: 0,
                                amount_msat: 1000000,
                                cltv_expiry: 500,
-                               payment_hash: [0; 32],
+                               payment_hash: PaymentHash([0; 32]),
                                state: InboundHTLCState::Committed,
                        };
-                       let mut sha = Sha256::new();
-                       sha.input(&hex::decode("0000000000000000000000000000000000000000000000000000000000000000").unwrap());
-                       sha.result(&mut out.payment_hash);
+                       out.payment_hash.0 = Sha256::hash(&hex::decode("0000000000000000000000000000000000000000000000000000000000000000").unwrap()).into_inner();
                        out
                });
                chan.pending_inbound_htlcs.push({
@@ -3998,12 +4086,10 @@ mod tests {
                                htlc_id: 1,
                                amount_msat: 2000000,
                                cltv_expiry: 501,
-                               payment_hash: [0; 32],
+                               payment_hash: PaymentHash([0; 32]),
                                state: InboundHTLCState::Committed,
                        };
-                       let mut sha = Sha256::new();
-                       sha.input(&hex::decode("0101010101010101010101010101010101010101010101010101010101010101").unwrap());
-                       sha.result(&mut out.payment_hash);
+                       out.payment_hash.0 = Sha256::hash(&hex::decode("0101010101010101010101010101010101010101010101010101010101010101").unwrap()).into_inner();
                        out
                });
                chan.pending_outbound_htlcs.push({
@@ -4011,14 +4097,12 @@ mod tests {
                                htlc_id: 2,
                                amount_msat: 2000000,
                                cltv_expiry: 502,
-                               payment_hash: [0; 32],
+                               payment_hash: PaymentHash([0; 32]),
                                state: OutboundHTLCState::Committed,
                                source: HTLCSource::dummy(),
                                fail_reason: None,
                        };
-                       let mut sha = Sha256::new();
-                       sha.input(&hex::decode("0202020202020202020202020202020202020202020202020202020202020202").unwrap());
-                       sha.result(&mut out.payment_hash);
+                       out.payment_hash.0 = Sha256::hash(&hex::decode("0202020202020202020202020202020202020202020202020202020202020202").unwrap()).into_inner();
                        out
                });
                chan.pending_outbound_htlcs.push({
@@ -4026,14 +4110,12 @@ mod tests {
                                htlc_id: 3,
                                amount_msat: 3000000,
                                cltv_expiry: 503,
-                               payment_hash: [0; 32],
+                               payment_hash: PaymentHash([0; 32]),
                                state: OutboundHTLCState::Committed,
                                source: HTLCSource::dummy(),
                                fail_reason: None,
                        };
-                       let mut sha = Sha256::new();
-                       sha.input(&hex::decode("0303030303030303030303030303030303030303030303030303030303030303").unwrap());
-                       sha.result(&mut out.payment_hash);
+                       out.payment_hash.0 = Sha256::hash(&hex::decode("0303030303030303030303030303030303030303030303030303030303030303").unwrap()).into_inner();
                        out
                });
                chan.pending_inbound_htlcs.push({
@@ -4041,12 +4123,10 @@ mod tests {
                                htlc_id: 4,
                                amount_msat: 4000000,
                                cltv_expiry: 504,
-                               payment_hash: [0; 32],
+                               payment_hash: PaymentHash([0; 32]),
                                state: InboundHTLCState::Committed,
                        };
-                       let mut sha = Sha256::new();
-                       sha.input(&hex::decode("0404040404040404040404040404040404040404040404040404040404040404").unwrap());
-                       sha.result(&mut out.payment_hash);
+                       out.payment_hash.0 = Sha256::hash(&hex::decode("0404040404040404040404040404040404040404040404040404040404040404").unwrap()).into_inner();
                        out
                });