Add further clarification TODO in finish_force_close_channel
[rust-lightning] / src / ln / channelmanager.rs
index 67837af719c31829452ebff10849ae6c0f4da80d..8abaf14603df93b01b19098649281ebcbd042a3c 100644 (file)
@@ -19,13 +19,15 @@ use ln::msgs;
 use ln::msgs::{HandleError,ChannelMessageHandler,MsgEncodable,MsgDecodable};
 use util::{byte_utils, events, internal_traits, rng};
 use util::sha2::Sha256;
+use util::chacha20poly1305rfc::ChaCha20;
+use util::logger::Logger;
+use util::errors::APIError;
 
 use crypto;
 use crypto::mac::{Mac,MacResult};
 use crypto::hmac::Hmac;
 use crypto::digest::Digest;
 use crypto::symmetriccipher::SynchronousStreamCipher;
-use crypto::chacha20::ChaCha20;
 
 use std::{ptr, mem};
 use std::collections::HashMap;
@@ -38,6 +40,7 @@ mod channel_held_info {
        use ln::msgs;
 
        /// Stores the info we will need to send when we want to forward an HTLC onwards
+       #[derive(Clone)] // See Channel::revoke_and_ack for why, tl;dr: Rust bug
        pub struct PendingForwardHTLCInfo {
                pub(super) onion_packet: Option<msgs::OnionPacket>,
                pub(super) payment_hash: [u8; 32],
@@ -47,17 +50,30 @@ mod channel_held_info {
                pub(super) outgoing_cltv_value: u32,
        }
 
+       #[derive(Clone)] // See Channel::revoke_and_ack for why, tl;dr: Rust bug
+       pub enum HTLCFailureMsg {
+               Relay(msgs::UpdateFailHTLC),
+               Malformed(msgs::UpdateFailMalformedHTLC),
+       }
+
+       /// Stores whether we can't forward an HTLC or relevant forwarding info
+       #[derive(Clone)] // See Channel::revoke_and_ack for why, tl;dr: Rust bug
+       pub enum PendingHTLCStatus {
+               Forward(PendingForwardHTLCInfo),
+               Fail(HTLCFailureMsg),
+       }
+
        #[cfg(feature = "fuzztarget")]
-       impl PendingForwardHTLCInfo {
+       impl PendingHTLCStatus {
                pub fn dummy() -> Self {
-                       Self {
+                       PendingHTLCStatus::Forward(PendingForwardHTLCInfo {
                                onion_packet: None,
                                payment_hash: [0; 32],
                                short_channel_id: 0,
                                prev_short_channel_id: 0,
                                amt_to_forward: 0,
                                outgoing_cltv_value: 0,
-                       }
+                       })
                }
        }
 
@@ -104,6 +120,51 @@ enum PendingOutboundHTLC {
        }
 }
 
+struct MsgHandleErrInternal {
+       err: msgs::HandleError,
+       needs_channel_force_close: bool,
+}
+impl MsgHandleErrInternal {
+       #[inline]
+       fn send_err_msg_no_close(err: &'static str, channel_id: [u8; 32]) -> Self {
+               Self {
+                       err: HandleError {
+                               err,
+                               action: Some(msgs::ErrorAction::SendErrorMessage {
+                                       msg: msgs::ErrorMessage {
+                                               channel_id,
+                                               data: err.to_string()
+                                       },
+                               }),
+                       },
+                       needs_channel_force_close: false,
+               }
+       }
+       #[inline]
+       fn send_err_msg_close_chan(err: &'static str, channel_id: [u8; 32]) -> Self {
+               Self {
+                       err: HandleError {
+                               err,
+                               action: Some(msgs::ErrorAction::SendErrorMessage {
+                                       msg: msgs::ErrorMessage {
+                                               channel_id,
+                                               data: err.to_string()
+                                       },
+                               }),
+                       },
+                       needs_channel_force_close: true,
+               }
+       }
+       #[inline]
+       fn from_maybe_close(err: msgs::HandleError) -> Self {
+               Self { err, needs_channel_force_close: true }
+       }
+       #[inline]
+       fn from_no_close(err: msgs::HandleError) -> Self {
+               Self { err, needs_channel_force_close: false }
+       }
+}
+
 /// We hold back HTLCs we intend to relay for a random interval in the range (this, 5*this). This
 /// provides some limited amount of privacy. Ideally this would range from somewhere like 1 second
 /// to 30 seconds, but people expect lightning to be, you know, kinda fast, sadly. We could
@@ -115,14 +176,19 @@ struct ChannelHolder {
        short_to_id: HashMap<u64, [u8; 32]>,
        next_forward: Instant,
        /// short channel id -> forward infos. Key of 0 means payments received
+       /// Note that while this is held in the same mutex as the channels themselves, no consistency
+       /// guarantees are made about there existing a channel with the short id here, nor the short
+       /// ids in the PendingForwardHTLCInfo!
        forward_htlcs: HashMap<u64, Vec<PendingForwardHTLCInfo>>,
+       /// Note that while this is held in the same mutex as the channels themselves, no consistency
+       /// guarantees are made about the channels given here actually existing anymore by the time you
+       /// go to read them!
        claimable_htlcs: HashMap<[u8; 32], PendingOutboundHTLC>,
 }
 struct MutChannelHolder<'a> {
        by_id: &'a mut HashMap<[u8; 32], Channel>,
        short_to_id: &'a mut HashMap<u64, [u8; 32]>,
        next_forward: &'a mut Instant,
-       /// short channel id -> forward infos. Key of 0 means payments received
        forward_htlcs: &'a mut HashMap<u64, Vec<PendingForwardHTLCInfo>>,
        claimable_htlcs: &'a mut HashMap<[u8; 32], PendingOutboundHTLC>,
 }
@@ -132,13 +198,15 @@ impl ChannelHolder {
                        by_id: &mut self.by_id,
                        short_to_id: &mut self.short_to_id,
                        next_forward: &mut self.next_forward,
-                       /// short channel id -> forward infos. Key of 0 means payments received
                        forward_htlcs: &mut self.forward_htlcs,
                        claimable_htlcs: &mut self.claimable_htlcs,
                }
        }
 }
 
+#[cfg(not(any(target_pointer_width = "32", target_pointer_width = "64")))]
+const ERR: () = "You need at least 32 bit pointers (well, usize, but we'll assume they're the same) for ChannelManager::latest_block_height";
+
 /// Manager which keeps track of a number of channels and sends messages to the appropriate
 /// channel, also tracking HTLC preimages and forwarding onion packets appropriately.
 /// Implements ChannelMessageHandler, handling the multi-channel parts and passing things through
@@ -152,23 +220,24 @@ pub struct ChannelManager {
 
        announce_channels_publicly: bool,
        fee_proportional_millionths: u32,
-       latest_block_height: AtomicUsize, //TODO: Compile-time assert this is at least 32-bits long
-       secp_ctx: Secp256k1,
+       latest_block_height: AtomicUsize,
+       secp_ctx: Secp256k1<secp256k1::All>,
 
        channel_state: Mutex<ChannelHolder>,
        our_network_key: SecretKey,
 
        pending_events: Mutex<Vec<events::Event>>,
+
+       logger: Arc<Logger>,
 }
 
 const CLTV_EXPIRY_DELTA: u16 = 6 * 24 * 2; //TODO?
 
 macro_rules! secp_call {
-       ( $res : expr ) => {
+       ( $res: expr, $err: expr ) => {
                match $res {
                        Ok(key) => key,
-                       //TODO: Make the err a parameter!
-                       Err(_) => return Err(HandleError{err: "Key error", action: None})
+                       Err(_) => return Err($err),
                }
        };
 }
@@ -204,7 +273,7 @@ impl ChannelManager {
        /// fee_proportional_millionths is an optional fee to charge any payments routed through us.
        /// Non-proportional fees are fixed according to our risk using the provided fee estimator.
        /// panics if channel_value_satoshis is >= `MAX_FUNDING_SATOSHIS`!
-       pub fn new(our_network_key: SecretKey, fee_proportional_millionths: u32, announce_channels_publicly: bool, network: Network, feeest: Arc<FeeEstimator>, monitor: Arc<ManyChannelMonitor>, chain_monitor: Arc<ChainWatchInterface>, tx_broadcaster: Arc<BroadcasterInterface>) -> Result<Arc<ChannelManager>, secp256k1::Error> {
+       pub fn new(our_network_key: SecretKey, fee_proportional_millionths: u32, announce_channels_publicly: bool, network: Network, feeest: Arc<FeeEstimator>, monitor: Arc<ManyChannelMonitor>, chain_monitor: Arc<ChainWatchInterface>, tx_broadcaster: Arc<BroadcasterInterface>, logger: Arc<Logger>) -> Result<Arc<ChannelManager>, secp256k1::Error> {
                let secp_ctx = Secp256k1::new();
 
                let res = Arc::new(ChannelManager {
@@ -229,6 +298,8 @@ impl ChannelManager {
                        our_network_key,
 
                        pending_events: Mutex::new(Vec::new()),
+
+                       logger,
                });
                let weak_res = Arc::downgrade(&res);
                res.chain_monitor.register_listener(weak_res);
@@ -242,7 +313,8 @@ impl ChannelManager {
        /// may wish to avoid using 0 for user_id here.
        /// If successful, will generate a SendOpenChannel event, so you should probably poll
        /// PeerManager::process_events afterwards.
-       pub fn create_channel(&self, their_network_key: PublicKey, channel_value_satoshis: u64, user_id: u64) -> Result<(), HandleError> {
+       /// Raises APIError::APIMisuseError when channel_value_satoshis > 2**24 or push_msat being greater than channel_value_satoshis * 1k
+       pub fn create_channel(&self, their_network_key: PublicKey, channel_value_satoshis: u64, push_msat: u64, user_id: u64) -> Result<(), APIError> {
                let chan_keys = if cfg!(feature = "fuzztarget") {
                        ChannelKeys {
                                funding_key:               SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
@@ -263,7 +335,7 @@ impl ChannelManager {
                        }
                };
 
-               let channel = Channel::new_outbound(&*self.fee_estimator, chan_keys, their_network_key, channel_value_satoshis, self.announce_channels_publicly, user_id);
+               let channel = Channel::new_outbound(&*self.fee_estimator, chan_keys, their_network_key, channel_value_satoshis, push_msat, self.announce_channels_publicly, user_id, Arc::clone(&self.logger))?;
                let res = channel.get_open_channel(self.genesis_hash.clone(), &*self.fee_estimator)?;
                let mut channel_state = self.channel_state.lock().unwrap();
                match channel_state.by_id.insert(channel.channel_id(), channel) {
@@ -360,6 +432,57 @@ impl ChannelManager {
                Ok(())
        }
 
+       #[inline]
+       fn finish_force_close_channel(&self, shutdown_res: (Vec<Transaction>, Vec<[u8; 32]>)) {
+               let (local_txn, failed_htlcs) = shutdown_res;
+               for payment_hash in failed_htlcs {
+                       // unknown_next_peer...I dunno who that is anymore....
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), &payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 10, data: Vec::new() });
+               }
+               for tx in local_txn {
+                       self.tx_broadcaster.broadcast_transaction(&tx);
+               }
+               //TODO: We need to have a way where outbound HTLC claims can result in us claiming the
+               //now-on-chain HTLC output for ourselves (and, thereafter, passing the HTLC backwards).
+               //TODO: We need to handle monitoring of pending offered HTLCs which just hit the chain and
+               //may be claimed, resulting in us claiming the inbound HTLCs (and back-failing after
+               //timeouts are hit and our claims confirm).
+               //TODO: In any case, we need to make sure we remove any pending htlc tracking (via
+               //fail_backwards or claim_funds) eventually for all HTLCs that were in the channel
+       }
+
+       /// Force closes a channel, immediately broadcasting the latest local commitment transaction to
+       /// the chain and rejecting new HTLCs on the given channel.
+       pub fn force_close_channel(&self, channel_id: &[u8; 32]) {
+               let mut chan = {
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
+                       if let Some(chan) = channel_state.by_id.remove(channel_id) {
+                               if let Some(short_id) = chan.get_short_channel_id() {
+                                       channel_state.short_to_id.remove(&short_id);
+                               }
+                               chan
+                       } else {
+                               return;
+                       }
+               };
+               self.finish_force_close_channel(chan.force_shutdown());
+               let mut events = self.pending_events.lock().unwrap();
+               if let Ok(update) = self.get_channel_update(&chan) {
+                       events.push(events::Event::BroadcastChannelUpdate {
+                               msg: update
+                       });
+               }
+       }
+
+       /// Force close all channels, immediately broadcasting the latest local commitment transaction
+       /// for each to the chain and rejecting new HTLCs on each.
+       pub fn force_close_all_channels(&self) {
+               for chan in self.list_channels() {
+                       self.force_close_channel(&chan.channel_id);
+               }
+       }
+
        #[inline]
        fn gen_rho_mu_from_shared_secret(shared_secret: &SharedSecret) -> ([u8; 32], [u8; 32]) {
                ({
@@ -398,10 +521,9 @@ impl ChannelManager {
 
        // can only fail if an intermediary hop has an invalid public key or session_priv is invalid
        #[inline]
-       fn construct_onion_keys_callback<FType: FnMut(SharedSecret, [u8; 32], PublicKey, &RouteHop)> (secp_ctx: &Secp256k1, route: &Route, session_priv: &SecretKey, mut callback: FType) -> Result<(), HandleError> {
+       fn construct_onion_keys_callback<T: secp256k1::Signing, FType: FnMut(SharedSecret, [u8; 32], PublicKey, &RouteHop)> (secp_ctx: &Secp256k1<T>, route: &Route, session_priv: &SecretKey, mut callback: FType) -> Result<(), secp256k1::Error> {
                let mut blinded_priv = session_priv.clone();
-               let mut blinded_pub = secp_call!(PublicKey::from_secret_key(secp_ctx, &blinded_priv));
-               let mut first_iteration = true;
+               let mut blinded_pub = PublicKey::from_secret_key(secp_ctx, &blinded_priv);
 
                for hop in route.hops.iter() {
                        let shared_secret = SharedSecret::new(secp_ctx, &hop.pubkey, &blinded_priv);
@@ -412,14 +534,10 @@ impl ChannelManager {
                        let mut blinding_factor = [0u8; 32];
                        sha.result(&mut blinding_factor);
 
-                       if first_iteration {
-                               blinded_pub = secp_call!(PublicKey::from_secret_key(secp_ctx, &blinded_priv));
-                               first_iteration = false;
-                       }
                        let ephemeral_pubkey = blinded_pub;
 
-                       secp_call!(blinded_priv.mul_assign(secp_ctx, &secp_call!(SecretKey::from_slice(secp_ctx, &blinding_factor))));
-                       blinded_pub = secp_call!(PublicKey::from_secret_key(secp_ctx, &blinded_priv));
+                       blinded_priv.mul_assign(secp_ctx, &SecretKey::from_slice(secp_ctx, &blinding_factor)?)?;
+                       blinded_pub = PublicKey::from_secret_key(secp_ctx, &blinded_priv);
 
                        callback(shared_secret, blinding_factor, ephemeral_pubkey, hop);
                }
@@ -428,7 +546,7 @@ impl ChannelManager {
        }
 
        // can only fail if an intermediary hop has an invalid public key or session_priv is invalid
-       fn construct_onion_keys(secp_ctx: &Secp256k1, route: &Route, session_priv: &SecretKey) -> Result<Vec<OnionKeys>, HandleError> {
+       fn construct_onion_keys<T: secp256k1::Signing>(secp_ctx: &Secp256k1<T>, route: &Route, session_priv: &SecretKey) -> Result<Vec<OnionKeys>, secp256k1::Error> {
                let mut res = Vec::with_capacity(route.hops.len());
 
                Self::construct_onion_keys_callback(secp_ctx, route, session_priv, |shared_secret, _blinding_factor, ephemeral_pubkey, _| {
@@ -548,7 +666,7 @@ impl ChannelManager {
 
                Ok(msgs::OnionPacket{
                        version: 0,
-                       public_key: onion_keys.first().unwrap().ephemeral_pubkey,
+                       public_key: Ok(onion_keys.first().unwrap().ephemeral_pubkey),
                        hop_data: packet_data,
                        hmac: hmac_res,
                })
@@ -604,6 +722,183 @@ impl ChannelManager {
                ChannelManager::encrypt_failure_packet(shared_secret, &failure_packet.encode()[..])
        }
 
+       fn decode_update_add_htlc_onion(&self, msg: &msgs::UpdateAddHTLC) -> (PendingHTLCStatus, Option<SharedSecret>, MutexGuard<ChannelHolder>) {
+               macro_rules! get_onion_hash {
+                       () => {
+                               {
+                                       let mut sha = Sha256::new();
+                                       sha.input(&msg.onion_routing_packet.hop_data);
+                                       let mut onion_hash = [0; 32];
+                                       sha.result(&mut onion_hash);
+                                       onion_hash
+                               }
+                       }
+               }
+
+               if let Err(_) = msg.onion_routing_packet.public_key {
+                       log_info!(self, "Failed to accept/forward incoming HTLC with invalid ephemeral pubkey");
+                       return (PendingHTLCStatus::Fail(HTLCFailureMsg::Malformed(msgs::UpdateFailMalformedHTLC {
+                               channel_id: msg.channel_id,
+                               htlc_id: msg.htlc_id,
+                               sha256_of_onion: get_onion_hash!(),
+                               failure_code: 0x8000 | 0x4000 | 6,
+                       })), None, self.channel_state.lock().unwrap());
+               }
+
+               let shared_secret = SharedSecret::new(&self.secp_ctx, &msg.onion_routing_packet.public_key.unwrap(), &self.our_network_key);
+               let (rho, mu) = ChannelManager::gen_rho_mu_from_shared_secret(&shared_secret);
+
+               let mut channel_state = None;
+               macro_rules! return_err {
+                       ($msg: expr, $err_code: expr, $data: expr) => {
+                               {
+                                       log_info!(self, "Failed to accept/forward incoming HTLC: {}", $msg);
+                                       if channel_state.is_none() {
+                                               channel_state = Some(self.channel_state.lock().unwrap());
+                                       }
+                                       return (PendingHTLCStatus::Fail(HTLCFailureMsg::Relay(msgs::UpdateFailHTLC {
+                                               channel_id: msg.channel_id,
+                                               htlc_id: msg.htlc_id,
+                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, $err_code, $data),
+                                       })), Some(shared_secret), channel_state.unwrap());
+                               }
+                       }
+               }
+
+               if msg.onion_routing_packet.version != 0 {
+                       //TODO: Spec doesn't indicate if we should only hash hop_data here (and in other
+                       //sha256_of_onion error data packets), or the entire onion_routing_packet. Either way,
+                       //the hash doesn't really serve any purpuse - in the case of hashing all data, the
+                       //receiving node would have to brute force to figure out which version was put in the
+                       //packet by the node that send us the message, in the case of hashing the hop_data, the
+                       //node knows the HMAC matched, so they already know what is there...
+                       return_err!("Unknown onion packet version", 0x8000 | 0x4000 | 4, &get_onion_hash!());
+               }
+
+               let mut hmac = Hmac::new(Sha256::new(), &mu);
+               hmac.input(&msg.onion_routing_packet.hop_data);
+               hmac.input(&msg.payment_hash);
+               if hmac.result() != MacResult::new(&msg.onion_routing_packet.hmac) {
+                       return_err!("HMAC Check failed", 0x8000 | 0x4000 | 5, &get_onion_hash!());
+               }
+
+               let mut chacha = ChaCha20::new(&rho, &[0u8; 8]);
+               let next_hop_data = {
+                       let mut decoded = [0; 65];
+                       chacha.process(&msg.onion_routing_packet.hop_data[0..65], &mut decoded);
+                       match msgs::OnionHopData::decode(&decoded[..]) {
+                               Err(err) => {
+                                       let error_code = match err {
+                                               msgs::DecodeError::UnknownRealmByte => 0x4000 | 1,
+                                               _ => 0x2000 | 2, // Should never happen
+                                       };
+                                       return_err!("Unable to decode our hop data", error_code, &[0;0]);
+                               },
+                               Ok(msg) => msg
+                       }
+               };
+
+               //TODO: Check that msg.cltv_expiry is within acceptable bounds!
+
+               let pending_forward_info = if next_hop_data.hmac == [0; 32] {
+                               // OUR PAYMENT!
+                               if next_hop_data.data.amt_to_forward != msg.amount_msat {
+                                       return_err!("Upstream node sent less than we were supposed to receive in payment", 19, &byte_utils::be64_to_array(msg.amount_msat));
+                               }
+                               if next_hop_data.data.outgoing_cltv_value != msg.cltv_expiry {
+                                       return_err!("Upstream node set CLTV to the wrong value", 18, &byte_utils::be32_to_array(msg.cltv_expiry));
+                               }
+
+                               // Note that we could obviously respond immediately with an update_fulfill_htlc
+                               // message, however that would leak that we are the recipient of this payment, so
+                               // instead we stay symmetric with the forwarding case, only responding (after a
+                               // delay) once they've send us a commitment_signed!
+
+                               PendingHTLCStatus::Forward(PendingForwardHTLCInfo {
+                                       onion_packet: None,
+                                       payment_hash: msg.payment_hash.clone(),
+                                       short_channel_id: 0,
+                                       prev_short_channel_id: 0,
+                                       amt_to_forward: next_hop_data.data.amt_to_forward,
+                                       outgoing_cltv_value: next_hop_data.data.outgoing_cltv_value,
+                               })
+                       } else {
+                               let mut new_packet_data = [0; 20*65];
+                               chacha.process(&msg.onion_routing_packet.hop_data[65..], &mut new_packet_data[0..19*65]);
+                               chacha.process(&ChannelManager::ZERO[0..65], &mut new_packet_data[19*65..]);
+
+                               let mut new_pubkey = msg.onion_routing_packet.public_key.unwrap();
+
+                               let blinding_factor = {
+                                       let mut sha = Sha256::new();
+                                       sha.input(&new_pubkey.serialize()[..]);
+                                       sha.input(&shared_secret[..]);
+                                       let mut res = [0u8; 32];
+                                       sha.result(&mut res);
+                                       match SecretKey::from_slice(&self.secp_ctx, &res) {
+                                               Err(_) => {
+                                                       return_err!("Blinding factor is an invalid private key", 0x8000 | 0x4000 | 6, &get_onion_hash!());
+                                               },
+                                               Ok(key) => key
+                                       }
+                               };
+
+                               if let Err(_) = new_pubkey.mul_assign(&self.secp_ctx, &blinding_factor) {
+                                       return_err!("New blinding factor is an invalid private key", 0x8000 | 0x4000 | 6, &get_onion_hash!());
+                               }
+
+                               let outgoing_packet = msgs::OnionPacket {
+                                       version: 0,
+                                       public_key: Ok(new_pubkey),
+                                       hop_data: new_packet_data,
+                                       hmac: next_hop_data.hmac.clone(),
+                               };
+
+                               PendingHTLCStatus::Forward(PendingForwardHTLCInfo {
+                                       onion_packet: Some(outgoing_packet),
+                                       payment_hash: msg.payment_hash.clone(),
+                                       short_channel_id: next_hop_data.data.short_channel_id,
+                                       prev_short_channel_id: 0,
+                                       amt_to_forward: next_hop_data.data.amt_to_forward,
+                                       outgoing_cltv_value: next_hop_data.data.outgoing_cltv_value,
+                               })
+                       };
+
+               channel_state = Some(self.channel_state.lock().unwrap());
+               if let &PendingHTLCStatus::Forward(PendingForwardHTLCInfo { ref onion_packet, ref short_channel_id, ref amt_to_forward, ref outgoing_cltv_value, .. }) = &pending_forward_info {
+                       if onion_packet.is_some() { // If short_channel_id is 0 here, we'll reject them in the body here
+                               let id_option = channel_state.as_ref().unwrap().short_to_id.get(&short_channel_id).cloned();
+                               let forwarding_id = match id_option {
+                                       None => {
+                                               return_err!("Don't have available channel for forwarding as requested.", 0x4000 | 10, &[0;0]);
+                                       },
+                                       Some(id) => id.clone(),
+                               };
+                               if let Some((err, code, chan_update)) = {
+                                       let chan = channel_state.as_mut().unwrap().by_id.get_mut(&forwarding_id).unwrap();
+                                       if !chan.is_live() {
+                                               Some(("Forwarding channel is not in a ready state.", 0x1000 | 7, self.get_channel_update(chan).unwrap()))
+                                       } else {
+                                               let fee = amt_to_forward.checked_mul(self.fee_proportional_millionths as u64).and_then(|prop_fee| { (prop_fee / 1000000).checked_add(chan.get_our_fee_base_msat(&*self.fee_estimator) as u64) });
+                                               if fee.is_none() || msg.amount_msat < fee.unwrap() || (msg.amount_msat - fee.unwrap()) < *amt_to_forward {
+                                                       Some(("Prior hop has deviated from specified fees parameters or origin node has obsolete ones", 0x1000 | 12, self.get_channel_update(chan).unwrap()))
+                                               } else {
+                                                       if (msg.cltv_expiry as u64) < (*outgoing_cltv_value) as u64 + CLTV_EXPIRY_DELTA as u64 {
+                                                               Some(("Forwarding node has tampered with the intended HTLC values or origin node has an obsolete cltv_expiry_delta", 0x1000 | 13, self.get_channel_update(chan).unwrap()))
+                                                       } else {
+                                                               None
+                                                       }
+                                               }
+                                       }
+                               } {
+                                       return_err!(err, code, &chan_update.encode_with_len()[..]);
+                               }
+                       }
+               }
+
+               (pending_forward_info, Some(shared_secret), channel_state.unwrap())
+       }
+
        /// only fails if the channel does not yet have an assigned short_id
        fn get_channel_update(&self, chan: &Channel) -> Result<msgs::ChannelUpdate, HandleError> {
                let short_channel_id = match chan.get_short_channel_id() {
@@ -611,7 +906,7 @@ impl ChannelManager {
                        Some(id) => id,
                };
 
-               let were_node_one = PublicKey::from_secret_key(&self.secp_ctx, &self.our_network_key).unwrap().serialize()[..] < chan.get_their_node_id().serialize()[..];
+               let were_node_one = PublicKey::from_secret_key(&self.secp_ctx, &self.our_network_key).serialize()[..] < chan.get_their_node_id().serialize()[..];
 
                let unsigned = msgs::UnsignedChannelUpdate {
                        chain_hash: self.genesis_hash,
@@ -622,10 +917,11 @@ impl ChannelManager {
                        htlc_minimum_msat: chan.get_our_htlc_minimum_msat(),
                        fee_base_msat: chan.get_our_fee_base_msat(&*self.fee_estimator),
                        fee_proportional_millionths: self.fee_proportional_millionths,
+                       excess_data: Vec::new(),
                };
 
                let msg_hash = Sha256dHash::from_data(&unsigned.encode()[..]);
-               let sig = self.secp_ctx.sign(&Message::from_slice(&msg_hash[..]).unwrap(), &self.our_network_key).unwrap(); //TODO Can we unwrap here?
+               let sig = self.secp_ctx.sign(&Message::from_slice(&msg_hash[..]).unwrap(), &self.our_network_key); //TODO Can we unwrap here?
 
                Ok(msgs::ChannelUpdate {
                        signature: sig,
@@ -655,15 +951,18 @@ impl ChannelManager {
                        }
                }
 
-               let session_priv = secp_call!(SecretKey::from_slice(&self.secp_ctx, &{
+               let session_priv = SecretKey::from_slice(&self.secp_ctx, &{
                        let mut session_key = [0; 32];
                        rng::fill_bytes(&mut session_key);
                        session_key
-               }));
+               }).expect("RNG is bad!");
 
                let cur_height = self.latest_block_height.load(Ordering::Acquire) as u32 + 1;
 
-               let onion_keys = ChannelManager::construct_onion_keys(&self.secp_ctx, &route, &session_priv)?;
+               //TODO: This should return something other than HandleError, that's really intended for
+               //p2p-returns only.
+               let onion_keys = secp_call!(ChannelManager::construct_onion_keys(&self.secp_ctx, &route, &session_priv),
+                               HandleError{err: "Pubkey along hop was maliciously selected", action: Some(msgs::ErrorAction::IgnoreError)});
                let (onion_payloads, htlc_msat, htlc_cltv) = ChannelManager::build_onion_payloads(&route, cur_height)?;
                let onion_packet = ChannelManager::construct_onion_packet(onion_payloads, onion_keys, &payment_hash)?;
 
@@ -707,17 +1006,25 @@ impl ChannelManager {
                }
 
                let mut events = self.pending_events.lock().unwrap();
-               events.push(events::Event::SendHTLCs {
+               events.push(events::Event::UpdateHTLCs {
                        node_id: first_hop_node_id,
-                       msgs: vec![update_add],
-                       commitment_msg: commitment_signed,
+                       updates: msgs::CommitmentUpdate {
+                               update_add_htlcs: vec![update_add],
+                               update_fulfill_htlcs: Vec::new(),
+                               update_fail_htlcs: Vec::new(),
+                               update_fail_malformed_htlcs: Vec::new(),
+                               commitment_signed,
+                       },
                });
                Ok(())
        }
 
        /// Call this upon creation of a funding transaction for the given channel.
        /// Panics if a funding transaction has already been provided for this channel.
+       /// May panic if the funding_txo is duplicative with some other channel (note that this should
+       /// be trivially prevented by using unique funding transaction keys per-channel).
        pub fn funding_transaction_generated(&self, temporary_channel_id: &[u8; 32], funding_txo: OutPoint) {
+
                macro_rules! add_pending_event {
                        ($event: expr) => {
                                {
@@ -736,12 +1043,12 @@ impl ChannelManager {
                                                        (chan, funding_msg.0, funding_msg.1)
                                                },
                                                Err(e) => {
+                                                       log_error!(self, "Got bad signatures: {}!", e.err);
                                                        mem::drop(channel_state);
-                                                       add_pending_event!(events::Event::DisconnectPeer {
+                                                       add_pending_event!(events::Event::HandleError {
                                                                node_id: chan.get_their_node_id(),
-                                                               msg: if let Some(msgs::ErrorAction::DisconnectPeer { msg } ) = e.action { msg } else { None },
+                                                               action: e.action,
                                                        });
-
                                                        return;
                                                },
                                        }
@@ -758,22 +1065,32 @@ impl ChannelManager {
                });
 
                let mut channel_state = self.channel_state.lock().unwrap();
-               channel_state.by_id.insert(chan.channel_id(), chan);
+               match channel_state.by_id.entry(chan.channel_id()) {
+                       hash_map::Entry::Occupied(_) => {
+                               panic!("Generated duplicate funding txid?");
+                       },
+                       hash_map::Entry::Vacant(e) => {
+                               e.insert(chan);
+                       }
+               }
        }
 
-       fn get_announcement_sigs(&self, chan: &Channel) -> Result<Option<msgs::AnnouncementSignatures>, HandleError> {
-               if !chan.is_usable() || !chan.should_announce() { return Ok(None) }
+       fn get_announcement_sigs(&self, chan: &Channel) -> Option<msgs::AnnouncementSignatures> {
+               if !chan.should_announce() { return None }
 
-               let (announcement, our_bitcoin_sig) = chan.get_channel_announcement(self.get_our_node_id(), self.genesis_hash.clone())?;
+               let (announcement, our_bitcoin_sig) = match chan.get_channel_announcement(self.get_our_node_id(), self.genesis_hash.clone()) {
+                       Ok(res) => res,
+                       Err(_) => return None, // Only in case of state precondition violations eg channel is closing
+               };
                let msghash = Message::from_slice(&Sha256dHash::from_data(&announcement.encode()[..])[..]).unwrap();
-               let our_node_sig = secp_call!(self.secp_ctx.sign(&msghash, &self.our_network_key));
+               let our_node_sig = self.secp_ctx.sign(&msghash, &self.our_network_key);
 
-               Ok(Some(msgs::AnnouncementSignatures {
+               Some(msgs::AnnouncementSignatures {
                        channel_id: chan.channel_id(),
                        short_channel_id: chan.get_short_channel_id().unwrap(),
                        node_signature: our_node_sig,
                        bitcoin_signature: our_bitcoin_sig,
-               }))
+               })
        }
 
        /// Processes HTLCs which are pending waiting on random forward delay.
@@ -832,15 +1149,25 @@ impl ChannelManager {
                                        if !add_htlc_msgs.is_empty() {
                                                let (commitment_msg, monitor) = match forward_chan.send_commitment() {
                                                        Ok(res) => res,
-                                                       Err(_) => {
+                                                       Err(e) => {
+                                                               if let &Some(msgs::ErrorAction::DisconnectPeer{msg: Some(ref _err_msg)}) = &e.action {
+                                                               } else if let &Some(msgs::ErrorAction::SendErrorMessage{msg: ref _err_msg}) = &e.action {
+                                                               } else {
+                                                                       panic!("Stated return value requirements in send_commitment() were not met");
+                                                               }
                                                                //TODO: Handle...this is bad!
                                                                continue;
                                                        },
                                                };
-                                               new_events.push((Some(monitor), events::Event::SendHTLCs {
+                                               new_events.push((Some(monitor), events::Event::UpdateHTLCs {
                                                        node_id: forward_chan.get_their_node_id(),
-                                                       msgs: add_htlc_msgs,
-                                                       commitment_msg: commitment_msg,
+                                                       updates: msgs::CommitmentUpdate {
+                                                               update_add_htlcs: add_htlc_msgs,
+                                                               update_fulfill_htlcs: Vec::new(),
+                                                               update_fail_htlcs: Vec::new(),
+                                                               update_fail_malformed_htlcs: Vec::new(),
+                                                               commitment_signed: commitment_msg,
+                                                       },
                                                }));
                                        }
                                } else {
@@ -884,6 +1211,12 @@ impl ChannelManager {
                self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 15, data: Vec::new() })
        }
 
+       /// Fails an HTLC backwards to the sender of it to us.
+       /// Note that while we take a channel_state lock as input, we do *not* assume consistency here.
+       /// There are several callsites that do stupid things like loop over a list of payment_hashes
+       /// to fail and take the channel_state lock for each iteration (as we take ownership and may
+       /// drop it). In other words, no assumptions are made that entries in claimable_htlcs point to
+       /// still-available channels.
        fn fail_htlc_backwards_internal(&self, mut channel_state: MutexGuard<ChannelHolder>, payment_hash: &[u8; 32], onion_error: HTLCFailReason) -> bool {
                let mut pending_htlc = {
                        match channel_state.claimable_htlcs.remove(payment_hash) {
@@ -904,7 +1237,7 @@ impl ChannelManager {
                }
 
                match pending_htlc {
-                       PendingOutboundHTLC::CycledRoute { .. } => { panic!("WAT"); },
+                       PendingOutboundHTLC::CycledRoute { .. } => unreachable!(),
                        PendingOutboundHTLC::OutboundRoute { .. } => {
                                mem::drop(channel_state);
 
@@ -950,10 +1283,15 @@ impl ChannelManager {
                                                }
 
                                                let mut pending_events = self.pending_events.lock().unwrap();
-                                               pending_events.push(events::Event::SendFailHTLC {
+                                               pending_events.push(events::Event::UpdateHTLCs {
                                                        node_id,
-                                                       msg: msg,
-                                                       commitment_msg: commitment_msg,
+                                                       updates: msgs::CommitmentUpdate {
+                                                               update_add_htlcs: Vec::new(),
+                                                               update_fulfill_htlcs: Vec::new(),
+                                                               update_fail_htlcs: vec![msg],
+                                                               update_fail_malformed_htlcs: Vec::new(),
+                                                               commitment_signed: commitment_msg,
+                                                       },
                                                });
                                        },
                                        None => {},
@@ -1000,7 +1338,7 @@ impl ChannelManager {
                }
 
                match pending_htlc {
-                       PendingOutboundHTLC::CycledRoute { .. } => { panic!("WAT"); },
+                       PendingOutboundHTLC::CycledRoute { .. } => unreachable!(),
                        PendingOutboundHTLC::OutboundRoute { .. } => {
                                if from_user {
                                        panic!("Called claim_funds with a preimage for an outgoing payment. There is nothing we can do with this, and something is seriously wrong if you knew this...");
@@ -1016,13 +1354,20 @@ impl ChannelManager {
                                let (node_id, fulfill_msgs) = {
                                        let chan_id = match channel_state.short_to_id.get(&source_short_channel_id) {
                                                Some(chan_id) => chan_id.clone(),
-                                               None => return false
+                                               None => {
+                                                       // TODO: There is probably a channel manager somewhere that needs to
+                                                       // learn the preimage as the channel already hit the chain and that's
+                                                       // why its missing.
+                                                       return false
+                                               }
                                        };
 
                                        let chan = channel_state.by_id.get_mut(&chan_id).unwrap();
                                        match chan.get_update_fulfill_htlc_and_commit(payment_preimage) {
                                                Ok(msg) => (chan.get_their_node_id(), msg),
                                                Err(_e) => {
+                                                       // TODO: There is probably a channel manager somewhere that needs to
+                                                       // learn the preimage as the channel may be about to hit the chain.
                                                        //TODO: Do something with e?
                                                        return false;
                                                },
@@ -1038,10 +1383,15 @@ impl ChannelManager {
 
                                if let Some((msg, commitment_msg)) = fulfill_msgs.0 {
                                        let mut pending_events = self.pending_events.lock().unwrap();
-                                       pending_events.push(events::Event::SendFulfillHTLC {
+                                       pending_events.push(events::Event::UpdateHTLCs {
                                                node_id: node_id,
-                                               msg,
-                                               commitment_msg,
+                                               updates: msgs::CommitmentUpdate {
+                                                       update_add_htlcs: Vec::new(),
+                                                       update_fulfill_htlcs: vec![msg],
+                                                       update_fail_htlcs: Vec::new(),
+                                                       update_fail_malformed_htlcs: Vec::new(),
+                                                       commitment_signed: commitment_msg,
+                                               }
                                        });
                                }
                                true
@@ -1051,7 +1401,7 @@ impl ChannelManager {
 
        /// Gets the node_id held by this ChannelManager
        pub fn get_our_node_id(&self) -> PublicKey {
-               PublicKey::from_secret_key(&self.secp_ctx, &self.our_network_key).unwrap()
+               PublicKey::from_secret_key(&self.secp_ctx, &self.our_network_key)
        }
 
        /// Used to restore channels to normal operation after a
@@ -1060,6 +1410,83 @@ impl ChannelManager {
        pub fn test_restore_channel_monitor(&self) {
                unimplemented!();
        }
+
+       fn internal_open_channel(&self, their_node_id: &PublicKey, msg: &msgs::OpenChannel) -> Result<msgs::AcceptChannel, MsgHandleErrInternal> {
+               if msg.chain_hash != self.genesis_hash {
+                       return Err(MsgHandleErrInternal::send_err_msg_no_close("Unknown genesis block hash", msg.temporary_channel_id.clone()));
+               }
+               let mut channel_state = self.channel_state.lock().unwrap();
+               if channel_state.by_id.contains_key(&msg.temporary_channel_id) {
+                       return Err(MsgHandleErrInternal::send_err_msg_no_close("temporary_channel_id collision!", msg.temporary_channel_id.clone()));
+               }
+
+               let chan_keys = if cfg!(feature = "fuzztarget") {
+                       ChannelKeys {
+                               funding_key:               SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 1, 0]).unwrap(),
+                               revocation_base_key:       SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 2, 0]).unwrap(),
+                               payment_base_key:          SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 3, 0]).unwrap(),
+                               delayed_payment_base_key:  SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 4, 0]).unwrap(),
+                               htlc_base_key:             SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 5, 0]).unwrap(),
+                               channel_close_key:         SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 6, 0]).unwrap(),
+                               channel_monitor_claim_key: SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 7, 0]).unwrap(),
+                               commitment_seed: [0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
+                       }
+               } else {
+                       let mut key_seed = [0u8; 32];
+                       rng::fill_bytes(&mut key_seed);
+                       match ChannelKeys::new_from_seed(&key_seed) {
+                               Ok(key) => key,
+                               Err(_) => panic!("RNG is busted!")
+                       }
+               };
+
+               let channel = Channel::new_from_req(&*self.fee_estimator, chan_keys, their_node_id.clone(), msg, 0, false, self.announce_channels_publicly, Arc::clone(&self.logger)).map_err(|e| MsgHandleErrInternal::from_no_close(e))?;
+               let accept_msg = channel.get_accept_channel();
+               channel_state.by_id.insert(channel.channel_id(), channel);
+               Ok(accept_msg)
+       }
+
+       fn internal_announcement_signatures(&self, their_node_id: &PublicKey, msg: &msgs::AnnouncementSignatures) -> Result<(), MsgHandleErrInternal> {
+               let (chan_announcement, chan_update) = {
+                       let mut channel_state = self.channel_state.lock().unwrap();
+                       match channel_state.by_id.get_mut(&msg.channel_id) {
+                               Some(chan) => {
+                                       if chan.get_their_node_id() != *their_node_id {
+                                               return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
+                                       }
+                                       if !chan.is_usable() {
+                                               return Err(MsgHandleErrInternal::from_no_close(HandleError{err: "Got an announcement_signatures before we were ready for it", action: Some(msgs::ErrorAction::IgnoreError)}));
+                                       }
+
+                                       let our_node_id = self.get_our_node_id();
+                                       let (announcement, our_bitcoin_sig) = chan.get_channel_announcement(our_node_id.clone(), self.genesis_hash.clone())
+                                               .map_err(|e| MsgHandleErrInternal::from_maybe_close(e))?;
+
+                                       let were_node_one = announcement.node_id_1 == our_node_id;
+                                       let msghash = Message::from_slice(&Sha256dHash::from_data(&announcement.encode()[..])[..]).unwrap();
+                                       let bad_sig_action = MsgHandleErrInternal::send_err_msg_close_chan("Bad announcement_signatures node_signature", msg.channel_id);
+                                       secp_call!(self.secp_ctx.verify(&msghash, &msg.node_signature, if were_node_one { &announcement.node_id_2 } else { &announcement.node_id_1 }), bad_sig_action);
+                                       secp_call!(self.secp_ctx.verify(&msghash, &msg.bitcoin_signature, if were_node_one { &announcement.bitcoin_key_2 } else { &announcement.bitcoin_key_1 }), bad_sig_action);
+
+                                       let our_node_sig = self.secp_ctx.sign(&msghash, &self.our_network_key);
+
+                                       (msgs::ChannelAnnouncement {
+                                               node_signature_1: if were_node_one { our_node_sig } else { msg.node_signature },
+                                               node_signature_2: if were_node_one { msg.node_signature } else { our_node_sig },
+                                               bitcoin_signature_1: if were_node_one { our_bitcoin_sig } else { msg.bitcoin_signature },
+                                               bitcoin_signature_2: if were_node_one { msg.bitcoin_signature } else { our_bitcoin_sig },
+                                               contents: announcement,
+                                       }, self.get_channel_update(chan).unwrap()) // can only fail if we're not in a ready state
+                               },
+                               None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       }
+               };
+               let mut pending_events = self.pending_events.lock().unwrap();
+               pending_events.push(events::Event::BroadcastChannelAnnouncement { msg: chan_announcement, update_msg: chan_update });
+               Ok(())
+       }
+
+
 }
 
 impl events::EventsProvider for ChannelManager {
@@ -1074,34 +1501,41 @@ impl events::EventsProvider for ChannelManager {
 impl ChainListener for ChannelManager {
        fn block_connected(&self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) {
                let mut new_events = Vec::new();
+               let mut failed_channels = Vec::new();
                {
-                       let mut channel_state = self.channel_state.lock().unwrap();
-                       let mut short_to_ids_to_insert = Vec::new();
-                       let mut short_to_ids_to_remove = Vec::new();
+                       let mut channel_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_lock.borrow_parts();
+                       let short_to_id = channel_state.short_to_id;
                        channel_state.by_id.retain(|_, channel| {
-                               if let Some(funding_locked) = channel.block_connected(header, height, txn_matched, indexes_of_txn_matched) {
-                                       let announcement_sigs = match self.get_announcement_sigs(channel) {
-                                               Ok(res) => res,
-                                               Err(_e) => {
-                                                       //TODO: push e on events and blow up the channel (it has bad keys)
-                                                       return true;
-                                               }
-                                       };
+                               let chan_res = channel.block_connected(header, height, txn_matched, indexes_of_txn_matched);
+                               if let Ok(Some(funding_locked)) = chan_res {
+                                       let announcement_sigs = self.get_announcement_sigs(channel);
                                        new_events.push(events::Event::SendFundingLocked {
                                                node_id: channel.get_their_node_id(),
                                                msg: funding_locked,
                                                announcement_sigs: announcement_sigs
                                        });
-                                       short_to_ids_to_insert.push((channel.get_short_channel_id().unwrap(), channel.channel_id()));
+                                       short_to_id.insert(channel.get_short_channel_id().unwrap(), channel.channel_id());
+                               } else if let Err(e) = chan_res {
+                                       new_events.push(events::Event::HandleError {
+                                               node_id: channel.get_their_node_id(),
+                                               action: e.action,
+                                       });
+                                       if channel.is_shutdown() {
+                                               return false;
+                                       }
                                }
                                if let Some(funding_txo) = channel.get_funding_txo() {
                                        for tx in txn_matched {
                                                for inp in tx.input.iter() {
-                                                       if inp.prev_hash == funding_txo.txid && inp.prev_index == funding_txo.index as u32 {
+                                                       if inp.previous_output == funding_txo.into_bitcoin_outpoint() {
                                                                if let Some(short_id) = channel.get_short_channel_id() {
-                                                                       short_to_ids_to_remove.push(short_id);
+                                                                       short_to_id.remove(&short_id);
                                                                }
-                                                               channel.force_shutdown();
+                                                               // It looks like our counterparty went on-chain. We go ahead and
+                                                               // broadcast our latest local state as well here, just in case its
+                                                               // some kind of SPV attack, though we expect these to be dropped.
+                                                               failed_channels.push(channel.force_shutdown());
                                                                if let Ok(update) = self.get_channel_update(&channel) {
                                                                        new_events.push(events::Event::BroadcastChannelUpdate {
                                                                                msg: update
@@ -1112,11 +1546,15 @@ impl ChainListener for ChannelManager {
                                                }
                                        }
                                }
-                               if channel.channel_monitor().would_broadcast_at_height(height) {
+                               if channel.is_funding_initiated() && channel.channel_monitor().would_broadcast_at_height(height) {
                                        if let Some(short_id) = channel.get_short_channel_id() {
-                                               short_to_ids_to_remove.push(short_id);
+                                               short_to_id.remove(&short_id);
                                        }
-                                       channel.force_shutdown();
+                                       failed_channels.push(channel.force_shutdown());
+                                       // If would_broadcast_at_height() is true, the channel_monitor will broadcast
+                                       // the latest local tx for us, so we should skip that here (it doesn't really
+                                       // hurt anything, but does make tests a bit simpler).
+                                       failed_channels.last_mut().unwrap().0 = Vec::new();
                                        if let Ok(update) = self.get_channel_update(&channel) {
                                                new_events.push(events::Event::BroadcastChannelUpdate {
                                                        msg: update
@@ -1126,12 +1564,9 @@ impl ChainListener for ChannelManager {
                                }
                                true
                        });
-                       for to_remove in short_to_ids_to_remove {
-                               channel_state.short_to_id.remove(&to_remove);
-                       }
-                       for to_insert in short_to_ids_to_insert {
-                               channel_state.short_to_id.insert(to_insert.0, to_insert.1);
-                       }
+               }
+               for failure in failed_channels.drain(..) {
+                       self.finish_force_close_channel(failure);
                }
                let mut pending_events = self.pending_events.lock().unwrap();
                for funding_locked in new_events.drain(..) {
@@ -1142,62 +1577,78 @@ impl ChainListener for ChannelManager {
 
        /// We force-close the channel without letting our counterparty participate in the shutdown
        fn block_disconnected(&self, header: &BlockHeader) {
-               let mut channel_lock = self.channel_state.lock().unwrap();
-               let channel_state = channel_lock.borrow_parts();
-               let short_to_id = channel_state.short_to_id;
-               channel_state.by_id.retain(|_,  v| {
-                       if v.block_disconnected(header) {
-                               let tx = v.force_shutdown();
-                               for broadcast_tx in tx {
-                                       self.tx_broadcaster.broadcast_transaction(&broadcast_tx);
-                               }
-                               if let Some(short_id) = v.get_short_channel_id() {
-                                       short_to_id.remove(&short_id);
+               let mut new_events = Vec::new();
+               let mut failed_channels = Vec::new();
+               {
+                       let mut channel_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_lock.borrow_parts();
+                       let short_to_id = channel_state.short_to_id;
+                       channel_state.by_id.retain(|_,  v| {
+                               if v.block_disconnected(header) {
+                                       if let Some(short_id) = v.get_short_channel_id() {
+                                               short_to_id.remove(&short_id);
+                                       }
+                                       failed_channels.push(v.force_shutdown());
+                                       if let Ok(update) = self.get_channel_update(&v) {
+                                               new_events.push(events::Event::BroadcastChannelUpdate {
+                                                       msg: update
+                                               });
+                                       }
+                                       false
+                               } else {
+                                       true
                                }
-                               false
-                       } else {
-                               true
+                       });
+               }
+               for failure in failed_channels.drain(..) {
+                       self.finish_force_close_channel(failure);
+               }
+               if !new_events.is_empty() {
+                       let mut pending_events = self.pending_events.lock().unwrap();
+                       for funding_locked in new_events.drain(..) {
+                               pending_events.push(funding_locked);
                        }
-               });
+               }
                self.latest_block_height.fetch_sub(1, Ordering::AcqRel);
        }
 }
 
-impl ChannelMessageHandler for ChannelManager {
-       //TODO: Handle errors and close channel (or so)
-       fn handle_open_channel(&self, their_node_id: &PublicKey, msg: &msgs::OpenChannel) -> Result<msgs::AcceptChannel, HandleError> {
-               if msg.chain_hash != self.genesis_hash {
-                       return Err(HandleError{err: "Unknown genesis block hash", action: None});
-               }
-               let mut channel_state = self.channel_state.lock().unwrap();
-               if channel_state.by_id.contains_key(&msg.temporary_channel_id) {
-                       return Err(HandleError{err: "temporary_channel_id collision!", action: None});
+macro_rules! handle_error {
+       ($self: ident, $internal: expr, $their_node_id: expr) => {
+               match $internal {
+                       Ok(msg) => Ok(msg),
+                       Err(MsgHandleErrInternal { err, needs_channel_force_close }) => {
+                               if needs_channel_force_close {
+                                       match &err.action {
+                                               &Some(msgs::ErrorAction::DisconnectPeer { msg: Some(ref msg) }) => {
+                                                       if msg.channel_id == [0; 32] {
+                                                               $self.peer_disconnected(&$their_node_id, true);
+                                                       } else {
+                                                               $self.force_close_channel(&msg.channel_id);
+                                                       }
+                                               },
+                                               &Some(msgs::ErrorAction::DisconnectPeer { msg: None }) => {},
+                                               &Some(msgs::ErrorAction::IgnoreError) => {},
+                                               &Some(msgs::ErrorAction::SendErrorMessage { ref msg }) => {
+                                                       if msg.channel_id == [0; 32] {
+                                                               $self.peer_disconnected(&$their_node_id, true);
+                                                       } else {
+                                                               $self.force_close_channel(&msg.channel_id);
+                                                       }
+                                               },
+                                               &None => {},
+                                       }
+                               }
+                               Err(err)
+                       },
                }
+       }
+}
 
-               let chan_keys = if cfg!(feature = "fuzztarget") {
-                       ChannelKeys {
-                               funding_key:               SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               revocation_base_key:       SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               payment_base_key:          SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               delayed_payment_base_key:  SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               htlc_base_key:             SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               channel_close_key:         SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               channel_monitor_claim_key: SecretKey::from_slice(&self.secp_ctx, &[0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0]).unwrap(),
-                               commitment_seed: [0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0],
-                       }
-               } else {
-                       let mut key_seed = [0u8; 32];
-                       rng::fill_bytes(&mut key_seed);
-                       match ChannelKeys::new_from_seed(&key_seed) {
-                               Ok(key) => key,
-                               Err(_) => panic!("RNG is busted!")
-                       }
-               };
-
-               let channel = Channel::new_from_req(&*self.fee_estimator, chan_keys, their_node_id.clone(), msg, 0, false, self.announce_channels_publicly)?;
-               let accept_msg = channel.get_accept_channel()?;
-               channel_state.by_id.insert(channel.channel_id(), channel);
-               Ok(accept_msg)
+impl ChannelMessageHandler for ChannelManager {
+       //TODO: Handle errors and close channel (or so)
+       fn handle_open_channel(&self, their_node_id: &PublicKey, msg: &msgs::OpenChannel) -> Result<msgs::AcceptChannel, HandleError> {
+               handle_error!(self, self.internal_open_channel(their_node_id, msg), their_node_id)
        }
 
        fn handle_accept_channel(&self, their_node_id: &PublicKey, msg: &msgs::AcceptChannel) -> Result<(), HandleError> {
@@ -1225,26 +1676,24 @@ impl ChannelMessageHandler for ChannelManager {
        }
 
        fn handle_funding_created(&self, their_node_id: &PublicKey, msg: &msgs::FundingCreated) -> Result<msgs::FundingSigned, HandleError> {
-               //TODO: broke this - a node shouldn't be able to get their channel removed by sending a
-               //funding_created a second time, or long after the first, or whatever (note this also
-               //leaves the short_to_id map in a busted state.
                let (chan, funding_msg, monitor_update) = {
                        let mut channel_state = self.channel_state.lock().unwrap();
-                       match channel_state.by_id.remove(&msg.temporary_channel_id) {
-                               Some(mut chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
+                       match channel_state.by_id.entry(msg.temporary_channel_id.clone()) {
+                               hash_map::Entry::Occupied(mut chan) => {
+                                       if chan.get().get_their_node_id() != *their_node_id {
                                                return Err(HandleError{err: "Got a message for a channel from the wrong node!", action: None})
                                        }
-                                       match chan.funding_created(msg) {
+                                       match chan.get_mut().funding_created(msg) {
                                                Ok((funding_msg, monitor_update)) => {
-                                                       (chan, funding_msg, monitor_update)
+                                                       (chan.remove(), funding_msg, monitor_update)
                                                },
                                                Err(e) => {
+                                                       //TODO: Possibly remove the channel depending on e.action
                                                        return Err(e);
                                                }
                                        }
                                },
-                               None => return Err(HandleError{err: "Failed to find corresponding channel", action: None})
+                               hash_map::Entry::Vacant(_) => return Err(HandleError{err: "Failed to find corresponding channel", action: None})
                        }
                }; // Release channel lock for install_watch_outpoint call,
                   // note that this means if the remote end is misbehaving and sends a message for the same
@@ -1254,7 +1703,17 @@ impl ChannelMessageHandler for ChannelManager {
                        unimplemented!();
                }
                let mut channel_state = self.channel_state.lock().unwrap();
-               channel_state.by_id.insert(funding_msg.channel_id, chan);
+               match channel_state.by_id.entry(funding_msg.channel_id) {
+                       hash_map::Entry::Occupied(_) => {
+                               return Err(HandleError {
+                                       err: "Duplicate channel_id!",
+                                       action: Some(msgs::ErrorAction::SendErrorMessage { msg: msgs::ErrorMessage { channel_id: funding_msg.channel_id, data: "Already had channel with the new channel_id".to_owned() } })
+                               });
+                       },
+                       hash_map::Entry::Vacant(e) => {
+                               e.insert(chan);
+                       }
+               }
                Ok(funding_msg)
        }
 
@@ -1291,7 +1750,7 @@ impl ChannelMessageHandler for ChannelManager {
                                        return Err(HandleError{err: "Got a message for a channel from the wrong node!", action: None})
                                }
                                chan.funding_locked(&msg)?;
-                               return Ok(self.get_announcement_sigs(chan)?);
+                               return Ok(self.get_announcement_sigs(chan));
                        },
                        None => return Err(HandleError{err: "Failed to find corresponding channel", action: None})
                };
@@ -1382,181 +1841,35 @@ impl ChannelMessageHandler for ChannelManager {
                //encrypted with the same key. Its not immediately obvious how to usefully exploit that,
                //but we should prevent it anyway.
 
-               let shared_secret = SharedSecret::new(&self.secp_ctx, &msg.onion_routing_packet.public_key, &self.our_network_key);
-               let (rho, mu) = ChannelManager::gen_rho_mu_from_shared_secret(&shared_secret);
-
-               macro_rules! get_onion_hash {
-                       () => {
-                               {
-                                       let mut sha = Sha256::new();
-                                       sha.input(&msg.onion_routing_packet.hop_data);
-                                       let mut onion_hash = [0; 32];
-                                       sha.result(&mut onion_hash);
-                                       onion_hash
-                               }
-                       }
-               }
-
-               macro_rules! return_err {
-                       ($msg: expr, $err_code: expr, $data: expr) => {
-                               return Err(msgs::HandleError {
-                                       err: $msg,
-                                       action: Some(msgs::ErrorAction::UpdateFailHTLC {
-                                               msg: msgs::UpdateFailHTLC {
-                                                       channel_id: msg.channel_id,
-                                                       htlc_id: msg.htlc_id,
-                                                       reason: ChannelManager::build_first_hop_failure_packet(&shared_secret, $err_code, $data),
-                                               }
-                                       }),
-                               });
-                       }
-               }
-
-               if msg.onion_routing_packet.version != 0 {
-                       //TODO: Spec doesn't indicate if we should only hash hop_data here (and in other
-                       //sha256_of_onion error data packets), or the entire onion_routing_packet. Either way,
-                       //the hash doesn't really serve any purpuse - in the case of hashing all data, the
-                       //receiving node would have to brute force to figure out which version was put in the
-                       //packet by the node that send us the message, in the case of hashing the hop_data, the
-                       //node knows the HMAC matched, so they already know what is there...
-                       return_err!("Unknown onion packet version", 0x8000 | 0x4000 | 4, &get_onion_hash!());
-               }
-
-               let mut hmac = Hmac::new(Sha256::new(), &mu);
-               hmac.input(&msg.onion_routing_packet.hop_data);
-               hmac.input(&msg.payment_hash);
-               if hmac.result() != MacResult::new(&msg.onion_routing_packet.hmac) {
-                       return_err!("HMAC Check failed", 0x8000 | 0x4000 | 5, &get_onion_hash!());
-               }
-
-               let mut chacha = ChaCha20::new(&rho, &[0u8; 8]);
-               let next_hop_data = {
-                       let mut decoded = [0; 65];
-                       chacha.process(&msg.onion_routing_packet.hop_data[0..65], &mut decoded);
-                       match msgs::OnionHopData::decode(&decoded[..]) {
-                               Err(err) => {
-                                       let error_code = match err {
-                                               msgs::DecodeError::UnknownRealmByte => 0x4000 | 1,
-                                               _ => 0x2000 | 2, // Should never happen
-                                       };
-                                       return_err!("Unable to decode our hop data", error_code, &[0;0]);
-                               },
-                               Ok(msg) => msg
-                       }
-               };
-
-               //TODO: Check that msg.cltv_expiry is within acceptable bounds!
-
-               let mut pending_forward_info = if next_hop_data.hmac == [0; 32] {
-                               // OUR PAYMENT!
-                               if next_hop_data.data.amt_to_forward != msg.amount_msat {
-                                       return_err!("Upstream node sent less than we were supposed to receive in payment", 19, &byte_utils::be64_to_array(msg.amount_msat));
-                               }
-                               if next_hop_data.data.outgoing_cltv_value != msg.cltv_expiry {
-                                       return_err!("Upstream node set CLTV to the wrong value", 18, &byte_utils::be32_to_array(msg.cltv_expiry));
-                               }
-
-                               // Note that we could obviously respond immediately with an update_fulfill_htlc
-                               // message, however that would leak that we are the recipient of this payment, so
-                               // instead we stay symmetric with the forwarding case, only responding (after a
-                               // delay) once they've send us a commitment_signed!
-
-                               PendingForwardHTLCInfo {
-                                       onion_packet: None,
-                                       payment_hash: msg.payment_hash.clone(),
-                                       short_channel_id: 0,
-                                       prev_short_channel_id: 0,
-                                       amt_to_forward: next_hop_data.data.amt_to_forward,
-                                       outgoing_cltv_value: next_hop_data.data.outgoing_cltv_value,
-                               }
-                       } else {
-                               let mut new_packet_data = [0; 20*65];
-                               chacha.process(&msg.onion_routing_packet.hop_data[65..], &mut new_packet_data[0..19*65]);
-                               chacha.process(&ChannelManager::ZERO[0..65], &mut new_packet_data[19*65..]);
-
-                               let mut new_pubkey = msg.onion_routing_packet.public_key.clone();
-
-                               let blinding_factor = {
-                                       let mut sha = Sha256::new();
-                                       sha.input(&new_pubkey.serialize()[..]);
-                                       sha.input(&shared_secret[..]);
-                                       let mut res = [0u8; 32];
-                                       sha.result(&mut res);
-                                       match SecretKey::from_slice(&self.secp_ctx, &res) {
-                                               Err(_) => {
-                                                       // Return temporary node failure as its technically our issue, not the
-                                                       // channel's issue.
-                                                       return_err!("Blinding factor is an invalid private key", 0x2000 | 2, &[0;0]);
-                                               },
-                                               Ok(key) => key
-                                       }
-                               };
-
-                               match new_pubkey.mul_assign(&self.secp_ctx, &blinding_factor) {
-                                       Err(_) => {
-                                               // Return temporary node failure as its technically our issue, not the
-                                               // channel's issue.
-                                               return_err!("New blinding factor is an invalid private key", 0x2000 | 2, &[0;0]);
-                                       },
-                                       Ok(_) => {}
-                               };
-
-                               let outgoing_packet = msgs::OnionPacket {
-                                       version: 0,
-                                       public_key: new_pubkey,
-                                       hop_data: new_packet_data,
-                                       hmac: next_hop_data.hmac.clone(),
-                               };
-
-                               //TODO: Check amt_to_forward and outgoing_cltv_value are within acceptable ranges!
-
-                               PendingForwardHTLCInfo {
-                                       onion_packet: Some(outgoing_packet),
-                                       payment_hash: msg.payment_hash.clone(),
-                                       short_channel_id: next_hop_data.data.short_channel_id,
-                                       prev_short_channel_id: 0,
-                                       amt_to_forward: next_hop_data.data.amt_to_forward,
-                                       outgoing_cltv_value: next_hop_data.data.outgoing_cltv_value,
-                               }
-                       };
-
-               let mut channel_state_lock = self.channel_state.lock().unwrap();
+               let (mut pending_forward_info, shared_secret, mut channel_state_lock) = self.decode_update_add_htlc_onion(msg);
                let channel_state = channel_state_lock.borrow_parts();
 
-               if pending_forward_info.onion_packet.is_some() { // If short_channel_id is 0 here, we'll reject them in the body here
-                       let forwarding_id = match channel_state.short_to_id.get(&pending_forward_info.short_channel_id) {
-                               None => {
-                                       return_err!("Don't have available channel for forwarding as requested.", 0x4000 | 10, &[0;0]);
-                               },
-                               Some(id) => id.clone(),
-                       };
-                       let chan = channel_state.by_id.get_mut(&forwarding_id).unwrap();
-                       if !chan.is_live() {
-                               let chan_update = self.get_channel_update(chan).unwrap();
-                               return_err!("Forwarding channel is not in a ready state.", 0x1000 | 7, &chan_update.encode_with_len()[..]);
-                       }
-               }
-
                let claimable_htlcs_entry = channel_state.claimable_htlcs.entry(msg.payment_hash.clone());
 
                // We dont correctly handle payments that route through us twice on their way to their
                // destination. That's OK since those nodes are probably busted or trying to do network
                // mapping through repeated loops. In either case, we want them to stop talking to us, so
                // we send permanent_node_failure.
-               match &claimable_htlcs_entry {
-                       &hash_map::Entry::Occupied(ref e) => {
+               let mut will_forward = false;
+               if let PendingHTLCStatus::Forward(PendingForwardHTLCInfo { short_channel_id, .. }) = pending_forward_info {
+                       if let &hash_map::Entry::Occupied(ref e) = &claimable_htlcs_entry {
                                let mut acceptable_cycle = false;
-                               match e.get() {
-                                       &PendingOutboundHTLC::OutboundRoute { .. } => {
-                                               acceptable_cycle = pending_forward_info.short_channel_id == 0;
-                                       },
-                                       _ => {},
+                               if let &PendingOutboundHTLC::OutboundRoute { .. } = e.get() {
+                                       acceptable_cycle = short_channel_id == 0;
                                }
                                if !acceptable_cycle {
-                                       return_err!("Payment looped through us twice", 0x4000 | 0x2000 | 2, &[0;0]);
+                                       log_info!(self, "Failed to accept incoming HTLC: Payment looped through us twice");
+                                       pending_forward_info = PendingHTLCStatus::Fail(HTLCFailureMsg::Relay(msgs::UpdateFailHTLC {
+                                               channel_id: msg.channel_id,
+                                               htlc_id: msg.htlc_id,
+                                               reason: ChannelManager::build_first_hop_failure_packet(&shared_secret.unwrap(), 0x4000 | 0x2000 | 2, &[0;0]),
+                                       }));
+                               } else {
+                                       will_forward = true;
                                }
-                       },
-                       _ => {},
+                       } else {
+                               will_forward = true;
+                       }
                }
 
                let (source_short_channel_id, res) = match channel_state.by_id.get_mut(&msg.channel_id) {
@@ -1568,33 +1881,37 @@ impl ChannelMessageHandler for ChannelManager {
                                        return Err(HandleError{err: "Channel not yet available for receiving HTLCs", action: None});
                                }
                                let short_channel_id = chan.get_short_channel_id().unwrap();
-                               pending_forward_info.prev_short_channel_id = short_channel_id;
+                               if let PendingHTLCStatus::Forward(ref mut forward_info) = pending_forward_info {
+                                       forward_info.prev_short_channel_id = short_channel_id;
+                               }
                                (short_channel_id, chan.update_add_htlc(&msg, pending_forward_info)?)
                        },
-                       None => return Err(HandleError{err: "Failed to find corresponding channel", action: None}), //TODO: panic?
+                       None => return Err(HandleError{err: "Failed to find corresponding channel", action: None}),
                };
 
-               match claimable_htlcs_entry {
-                       hash_map::Entry::Occupied(mut e) => {
-                               let outbound_route = e.get_mut();
-                               let (route, session_priv) = match outbound_route {
-                                       &mut PendingOutboundHTLC::OutboundRoute { ref route, ref session_priv } => {
-                                               (route.clone(), session_priv.clone())
-                                       },
-                                       _ => { panic!("WAT") },
-                               };
-                               *outbound_route = PendingOutboundHTLC::CycledRoute {
-                                       source_short_channel_id,
-                                       incoming_packet_shared_secret: shared_secret,
-                                       route,
-                                       session_priv,
-                               };
-                       },
-                       hash_map::Entry::Vacant(e) => {
-                               e.insert(PendingOutboundHTLC::IntermediaryHopData {
-                                       source_short_channel_id,
-                                       incoming_packet_shared_secret: shared_secret,
-                               });
+               if will_forward {
+                       match claimable_htlcs_entry {
+                               hash_map::Entry::Occupied(mut e) => {
+                                       let outbound_route = e.get_mut();
+                                       let (route, session_priv) = match outbound_route {
+                                               &mut PendingOutboundHTLC::OutboundRoute { ref route, ref session_priv } => {
+                                                       (route.clone(), session_priv.clone())
+                                               },
+                                               _ => unreachable!(),
+                                       };
+                                       *outbound_route = PendingOutboundHTLC::CycledRoute {
+                                               source_short_channel_id,
+                                               incoming_packet_shared_secret: shared_secret.unwrap(),
+                                               route,
+                                               session_priv,
+                                       };
+                               },
+                               hash_map::Entry::Vacant(e) => {
+                                       e.insert(PendingOutboundHTLC::IntermediaryHopData {
+                                               source_short_channel_id,
+                                               incoming_packet_shared_secret: shared_secret.unwrap(),
+                                       });
+                               }
                        }
                }
 
@@ -1607,22 +1924,16 @@ impl ChannelMessageHandler for ChannelManager {
                // is broken, we may have enough info to get our own money!
                self.claim_funds_internal(msg.payment_preimage.clone(), false);
 
-               let monitor = {
-                       let mut channel_state = self.channel_state.lock().unwrap();
-                       match channel_state.by_id.get_mut(&msg.channel_id) {
-                               Some(chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
-                                               return Err(HandleError{err: "Got a message for a channel from the wrong node!", action: None})
-                                       }
-                                       chan.update_fulfill_htlc(&msg)?
-                               },
-                               None => return Err(HandleError{err: "Failed to find corresponding channel", action: None})
-                       }
-               };
-               if let Err(_e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor) {
-                       unimplemented!();
+               let mut channel_state = self.channel_state.lock().unwrap();
+               match channel_state.by_id.get_mut(&msg.channel_id) {
+                       Some(chan) => {
+                               if chan.get_their_node_id() != *their_node_id {
+                                       return Err(HandleError{err: "Got a message for a channel from the wrong node!", action: None})
+                               }
+                               chan.update_fulfill_htlc(&msg)
+                       },
+                       None => return Err(HandleError{err: "Failed to find corresponding channel", action: None})
                }
-               Ok(())
        }
 
        fn handle_update_fail_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailHTLC) -> Result<Option<msgs::HTLCFailChannelUpdate>, HandleError> {
@@ -1798,45 +2109,12 @@ impl ChannelMessageHandler for ChannelManager {
        }
 
        fn handle_announcement_signatures(&self, their_node_id: &PublicKey, msg: &msgs::AnnouncementSignatures) -> Result<(), HandleError> {
-               let (chan_announcement, chan_update) = {
-                       let mut channel_state = self.channel_state.lock().unwrap();
-                       match channel_state.by_id.get_mut(&msg.channel_id) {
-                               Some(chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
-                                               return Err(HandleError{err: "Got a message for a channel from the wrong node!", action: None})
-                                       }
-                                       if !chan.is_usable() {
-                                               return Err(HandleError{err: "Got an announcement_signatures before we were ready for it", action: None });
-                                       }
-
-                                       let our_node_id = self.get_our_node_id();
-                                       let (announcement, our_bitcoin_sig) = chan.get_channel_announcement(our_node_id.clone(), self.genesis_hash.clone())?;
-
-                                       let were_node_one = announcement.node_id_1 == our_node_id;
-                                       let msghash = Message::from_slice(&Sha256dHash::from_data(&announcement.encode()[..])[..]).unwrap();
-                                       secp_call!(self.secp_ctx.verify(&msghash, &msg.node_signature, if were_node_one { &announcement.node_id_2 } else { &announcement.node_id_1 }));
-                                       secp_call!(self.secp_ctx.verify(&msghash, &msg.bitcoin_signature, if were_node_one { &announcement.bitcoin_key_2 } else { &announcement.bitcoin_key_1 }));
-
-                                       let our_node_sig = secp_call!(self.secp_ctx.sign(&msghash, &self.our_network_key));
-
-                                       (msgs::ChannelAnnouncement {
-                                               node_signature_1: if were_node_one { our_node_sig } else { msg.node_signature },
-                                               node_signature_2: if were_node_one { msg.node_signature } else { our_node_sig },
-                                               bitcoin_signature_1: if were_node_one { our_bitcoin_sig } else { msg.bitcoin_signature },
-                                               bitcoin_signature_2: if were_node_one { msg.bitcoin_signature } else { our_bitcoin_sig },
-                                               contents: announcement,
-                                       }, self.get_channel_update(chan).unwrap()) // can only fail if we're not in a ready state
-                               },
-                               None => return Err(HandleError{err: "Failed to find corresponding channel", action: None})
-                       }
-               };
-               let mut pending_events = self.pending_events.lock().unwrap();
-               pending_events.push(events::Event::BroadcastChannelAnnouncement { msg: chan_announcement, update_msg: chan_update });
-               Ok(())
+               handle_error!(self, self.internal_announcement_signatures(their_node_id, msg), their_node_id)
        }
 
        fn peer_disconnected(&self, their_node_id: &PublicKey, no_connection_possible: bool) {
                let mut new_events = Vec::new();
+               let mut failed_channels = Vec::new();
                {
                        let mut channel_state_lock = self.channel_state.lock().unwrap();
                        let channel_state = channel_state_lock.borrow_parts();
@@ -1847,10 +2125,7 @@ impl ChannelMessageHandler for ChannelManager {
                                                if let Some(short_id) = chan.get_short_channel_id() {
                                                        short_to_id.remove(&short_id);
                                                }
-                                               let txn_to_broadcast = chan.force_shutdown();
-                                               for tx in txn_to_broadcast {
-                                                       self.tx_broadcaster.broadcast_transaction(&tx);
-                                               }
+                                               failed_channels.push(chan.force_shutdown());
                                                if let Ok(update) = self.get_channel_update(&chan) {
                                                        new_events.push(events::Event::BroadcastChannelUpdate {
                                                                msg: update
@@ -1871,6 +2146,9 @@ impl ChannelMessageHandler for ChannelManager {
                                }
                        }
                }
+               for failure in failed_channels.drain(..) {
+                       self.finish_force_close_channel(failure);
+               }
                if !new_events.is_empty() {
                        let mut pending_events = self.pending_events.lock().unwrap();
                        for event in new_events.drain(..) {
@@ -1878,6 +2156,18 @@ impl ChannelMessageHandler for ChannelManager {
                        }
                }
        }
+
+       fn handle_error(&self, their_node_id: &PublicKey, msg: &msgs::ErrorMessage) {
+               if msg.channel_id == [0; 32] {
+                       for chan in self.list_channels() {
+                               if chan.remote_network_id == *their_node_id {
+                                       self.force_close_channel(&chan.channel_id);
+                               }
+                       }
+               } else {
+                       self.force_close_channel(&msg.channel_id);
+               }
+       }
 }
 
 #[cfg(test)]
@@ -1891,17 +2181,19 @@ mod tests {
        use ln::msgs::{MsgEncodable,ChannelMessageHandler,RoutingMessageHandler};
        use util::test_utils;
        use util::events::{Event, EventsProvider};
+       use util::logger::Logger;
 
        use bitcoin::util::hash::Sha256dHash;
        use bitcoin::blockdata::block::{Block, BlockHeader};
        use bitcoin::blockdata::transaction::{Transaction, TxOut};
+       use bitcoin::blockdata::constants::genesis_block;
        use bitcoin::network::constants::Network;
        use bitcoin::network::serialize::serialize;
        use bitcoin::network::serialize::BitcoinHash;
 
        use hex;
 
-       use secp256k1::Secp256k1;
+       use secp256k1::{Secp256k1, Message};
        use secp256k1::key::{PublicKey,SecretKey};
 
        use crypto::sha2::Sha256;
@@ -2076,18 +2368,16 @@ mod tests {
        }
 
        struct Node {
-               feeest: Arc<test_utils::TestFeeEstimator>,
                chain_monitor: Arc<chaininterface::ChainWatchInterfaceUtil>,
                tx_broadcaster: Arc<test_utils::TestBroadcaster>,
                chan_monitor: Arc<test_utils::TestChannelMonitor>,
-               node_id: SecretKey,
                node: Arc<ChannelManager>,
                router: Router,
        }
 
        static mut CHAN_COUNT: u32 = 0;
        fn create_chan_between_nodes(node_a: &Node, node_b: &Node) -> (msgs::ChannelAnnouncement, msgs::ChannelUpdate, msgs::ChannelUpdate, [u8; 32], Transaction) {
-               node_a.node.create_channel(node_b.node.get_our_node_id(), 100000, 42).unwrap();
+               node_a.node.create_channel(node_b.node.get_our_node_id(), 100000, 10001, 42).unwrap();
 
                let events_1 = node_a.node.get_and_clear_pending_events();
                assert_eq!(events_1.len(), 1);
@@ -2300,8 +2590,11 @@ mod tests {
        impl SendEvent {
                fn from_event(event: Event) -> SendEvent {
                        match event {
-                               Event::SendHTLCs { node_id, msgs, commitment_msg } => {
-                                       SendEvent { node_id: node_id, msgs: msgs, commitment_msg: commitment_msg }
+                               Event::UpdateHTLCs { node_id, updates: msgs::CommitmentUpdate { update_add_htlcs, update_fulfill_htlcs, update_fail_htlcs, update_fail_malformed_htlcs, commitment_signed } } => {
+                                       assert!(update_fulfill_htlcs.is_empty());
+                                       assert!(update_fail_htlcs.is_empty());
+                                       assert!(update_fail_malformed_htlcs.is_empty());
+                                       SendEvent { node_id: node_id, msgs: update_add_htlcs, commitment_msg: commitment_signed }
                                },
                                _ => panic!("Unexpected event type!"),
                        }
@@ -2416,10 +2709,9 @@ mod tests {
                                        {
                                                let mut added_monitors = $node.chan_monitor.added_monitors.lock().unwrap();
                                                if $last_node {
-                                                       assert_eq!(added_monitors.len(), 1);
+                                                       assert_eq!(added_monitors.len(), 0);
                                                } else {
-                                                       assert_eq!(added_monitors.len(), 2);
-                                                       assert!(added_monitors[0].0 != added_monitors[1].0);
+                                                       assert_eq!(added_monitors.len(), 1);
                                                }
                                                added_monitors.clear();
                                        }
@@ -2458,9 +2750,13 @@ mod tests {
                        let events = node.node.get_and_clear_pending_events();
                        assert_eq!(events.len(), 1);
                        match events[0] {
-                               Event::SendFulfillHTLC { ref node_id, ref msg, ref commitment_msg } => {
+                               Event::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fulfill_htlcs, ref update_fail_htlcs, ref update_fail_malformed_htlcs, ref commitment_signed } } => {
+                                       assert!(update_add_htlcs.is_empty());
+                                       assert_eq!(update_fulfill_htlcs.len(), 1);
+                                       assert!(update_fail_htlcs.is_empty());
+                                       assert!(update_fail_malformed_htlcs.is_empty());
                                        expected_next_node = node_id.clone();
-                                       next_msgs = Some((msg.clone(), commitment_msg.clone()));
+                                       next_msgs = Some((update_fulfill_htlcs[0].clone(), commitment_signed.clone()));
                                },
                                _ => panic!("Unexpected event"),
                        };
@@ -2579,9 +2875,13 @@ mod tests {
                        let events = node.node.get_and_clear_pending_events();
                        assert_eq!(events.len(), 1);
                        match events[0] {
-                               Event::SendFailHTLC { ref node_id, ref msg, ref commitment_msg } => {
+                               Event::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fulfill_htlcs, ref update_fail_htlcs, ref update_fail_malformed_htlcs, ref commitment_signed } } => {
+                                       assert!(update_add_htlcs.is_empty());
+                                       assert!(update_fulfill_htlcs.is_empty());
+                                       assert_eq!(update_fail_htlcs.len(), 1);
+                                       assert!(update_fail_malformed_htlcs.is_empty());
                                        expected_next_node = node_id.clone();
-                                       next_msgs = Some((msg.clone(), commitment_msg.clone()));
+                                       next_msgs = Some((update_fail_htlcs[0].clone(), commitment_signed.clone()));
                                },
                                _ => panic!("Unexpected event"),
                        };
@@ -2606,10 +2906,11 @@ mod tests {
                let mut nodes = Vec::new();
                let mut rng = thread_rng();
                let secp_ctx = Secp256k1::new();
+               let logger: Arc<Logger> = Arc::new(test_utils::TestLogger::new());
 
                for _ in 0..node_count {
                        let feeest = Arc::new(test_utils::TestFeeEstimator { sat_per_kw: 253 });
-                       let chain_monitor = Arc::new(chaininterface::ChainWatchInterfaceUtil::new());
+                       let chain_monitor = Arc::new(chaininterface::ChainWatchInterfaceUtil::new(Network::Testnet, Arc::clone(&logger)));
                        let tx_broadcaster = Arc::new(test_utils::TestBroadcaster{txn_broadcasted: Mutex::new(Vec::new())});
                        let chan_monitor = Arc::new(test_utils::TestChannelMonitor::new(chain_monitor.clone(), tx_broadcaster.clone()));
                        let node_id = {
@@ -2617,9 +2918,9 @@ mod tests {
                                rng.fill_bytes(&mut key_slice);
                                SecretKey::from_slice(&secp_ctx, &key_slice).unwrap()
                        };
-                       let node = ChannelManager::new(node_id.clone(), 0, true, Network::Testnet, feeest.clone(), chan_monitor.clone(), chain_monitor.clone(), tx_broadcaster.clone()).unwrap();
-                       let router = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id).unwrap());
-                       nodes.push(Node { feeest, chain_monitor, tx_broadcaster, chan_monitor, node_id, node, router });
+                       let node = ChannelManager::new(node_id.clone(), 0, true, Network::Testnet, feeest.clone(), chan_monitor.clone(), chain_monitor.clone(), tx_broadcaster.clone(), Arc::clone(&logger)).unwrap();
+                       let router = Router::new(PublicKey::from_secret_key(&secp_ctx, &node_id), chain_monitor.clone(), Arc::clone(&logger));
+                       nodes.push(Node { chain_monitor, tx_broadcaster, chan_monitor, node, router });
                }
 
                nodes
@@ -2755,7 +3056,7 @@ mod tests {
                        res.push(explicit_tx.clone());
                } else {
                        for tx in node_txn.iter() {
-                               if tx.input.len() == 1 && tx.input[0].prev_hash == chan.3.txid() {
+                               if tx.input.len() == 1 && tx.input[0].previous_output.txid == chan.3.txid() {
                                        let mut funding_tx_map = HashMap::new();
                                        funding_tx_map.insert(chan.3.txid(), chan.3.clone());
                                        tx.verify(&funding_tx_map).unwrap();
@@ -2767,7 +3068,7 @@ mod tests {
 
                if has_htlc_tx != HTLCType::NONE {
                        for tx in node_txn.iter() {
-                               if tx.input.len() == 1 && tx.input[0].prev_hash == res[0].txid() {
+                               if tx.input.len() == 1 && tx.input[0].previous_output.txid == res[0].txid() {
                                        let mut funding_tx_map = HashMap::new();
                                        funding_tx_map.insert(res[0].txid(), res[0].clone());
                                        tx.verify(&funding_tx_map).unwrap();
@@ -2794,7 +3095,7 @@ mod tests {
                let mut found_prev = false;
 
                for tx in prev_txn {
-                       if node_txn[0].input[0].prev_hash == tx.txid() {
+                       if node_txn[0].input[0].previous_output.txid == tx.txid() {
                                let mut funding_tx_map = HashMap::new();
                                funding_tx_map.insert(tx.txid(), tx.clone());
                                node_txn[0].verify(&funding_tx_map).unwrap();
@@ -2862,7 +3163,7 @@ mod tests {
                        let mut node_txn = test_txn_broadcast(&nodes[1], &chan_1, None, HTLCType::NONE);
                        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                        nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![node_txn.drain(..).next().unwrap()] }, 1);
-                       assert_eq!(nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 0);
+                       test_txn_broadcast(&nodes[0], &chan_1, None, HTLCType::NONE);
                }
                get_announce_close_broadcast_events(&nodes, 0, 1);
                assert_eq!(nodes[0].node.list_channels().len(), 0);
@@ -2877,7 +3178,7 @@ mod tests {
                        let mut node_txn = test_txn_broadcast(&nodes[1], &chan_2, None, HTLCType::TIMEOUT);
                        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
                        nodes[2].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![node_txn.drain(..).next().unwrap()] }, 1);
-                       assert_eq!(nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 0);
+                       test_txn_broadcast(&nodes[2], &chan_2, None, HTLCType::NONE);
                }
                get_announce_close_broadcast_events(&nodes, 1, 2);
                assert_eq!(nodes[1].node.list_channels().len(), 0);
@@ -2896,7 +3197,9 @@ mod tests {
                                        let events = $node.node.get_and_clear_pending_events();
                                        assert_eq!(events.len(), 1);
                                        match events[0] {
-                                               Event::SendFulfillHTLC { ref node_id, .. } => {
+                                               Event::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fail_htlcs, .. } } => {
+                                                       assert!(update_add_htlcs.is_empty());
+                                                       assert!(update_fail_htlcs.is_empty());
                                                        assert_eq!(*node_id, $prev_node.node.get_our_node_id());
                                                },
                                                _ => panic!("Unexpected event"),
@@ -2972,14 +3275,15 @@ mod tests {
                        nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                        {
                                let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
-                               assert_eq!(node_txn.len(), 1);
+                               assert_eq!(node_txn.len(), 2);
                                assert_eq!(node_txn[0].input.len(), 1);
 
                                let mut funding_tx_map = HashMap::new();
                                funding_tx_map.insert(revoked_local_txn[0].txid(), revoked_local_txn[0].clone());
                                node_txn[0].verify(&funding_tx_map).unwrap();
-                               node_txn.clear();
+                               node_txn.swap_remove(0);
                        }
+                       test_txn_broadcast(&nodes[1], &chan_5, None, HTLCType::NONE);
 
                        nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
                        let node_txn = test_txn_broadcast(&nodes[0], &chan_5, Some(revoked_local_txn[0].clone()), HTLCType::TIMEOUT);
@@ -3025,4 +3329,78 @@ mod tests {
                assert_eq!(channel_state.by_id.len(), 0);
                assert_eq!(channel_state.short_to_id.len(), 0);
        }
+
+       #[test]
+       fn test_invalid_channel_announcement() {
+               //Test BOLT 7 channel_announcement msg requirement for final node, gather data to build customed channel_announcement msgs
+               let secp_ctx = Secp256k1::new();
+               let nodes = create_network(2);
+
+               let chan_announcement = create_chan_between_nodes(&nodes[0], &nodes[1]);
+
+               let a_channel_lock = nodes[0].node.channel_state.lock().unwrap();
+               let b_channel_lock = nodes[1].node.channel_state.lock().unwrap();
+               let as_chan = a_channel_lock.by_id.get(&chan_announcement.3).unwrap();
+               let bs_chan = b_channel_lock.by_id.get(&chan_announcement.3).unwrap();
+
+               let _ = nodes[0].router.handle_htlc_fail_channel_update(&msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id : as_chan.get_short_channel_id().unwrap() } );
+
+               let as_bitcoin_key = PublicKey::from_secret_key(&secp_ctx, &as_chan.get_local_keys().funding_key);
+               let bs_bitcoin_key = PublicKey::from_secret_key(&secp_ctx, &bs_chan.get_local_keys().funding_key);
+
+               let as_network_key = nodes[0].node.get_our_node_id();
+               let bs_network_key = nodes[1].node.get_our_node_id();
+
+               let were_node_one = as_bitcoin_key.serialize()[..] < bs_bitcoin_key.serialize()[..];
+
+               let mut chan_announcement;
+
+               macro_rules! dummy_unsigned_msg {
+                       () => {
+                               msgs::UnsignedChannelAnnouncement {
+                                       features: msgs::GlobalFeatures::new(),
+                                       chain_hash: genesis_block(Network::Testnet).header.bitcoin_hash(),
+                                       short_channel_id: as_chan.get_short_channel_id().unwrap(),
+                                       node_id_1: if were_node_one { as_network_key } else { bs_network_key },
+                                       node_id_2: if were_node_one { bs_network_key } else { as_network_key },
+                                       bitcoin_key_1: if were_node_one { as_bitcoin_key } else { bs_bitcoin_key },
+                                       bitcoin_key_2: if were_node_one { bs_bitcoin_key } else { as_bitcoin_key },
+                                       excess_data: Vec::new(),
+                               };
+                       }
+               }
+
+               macro_rules! sign_msg {
+                       ($unsigned_msg: expr) => {
+                               let msghash = Message::from_slice(&Sha256dHash::from_data(&$unsigned_msg.encode()[..])[..]).unwrap();
+                               let as_bitcoin_sig = secp_ctx.sign(&msghash, &as_chan.get_local_keys().funding_key);
+                               let bs_bitcoin_sig = secp_ctx.sign(&msghash, &bs_chan.get_local_keys().funding_key);
+                               let as_node_sig = secp_ctx.sign(&msghash, &nodes[0].node.our_network_key);
+                               let bs_node_sig = secp_ctx.sign(&msghash, &nodes[1].node.our_network_key);
+                               chan_announcement = msgs::ChannelAnnouncement {
+                                       node_signature_1 : if were_node_one { as_node_sig } else { bs_node_sig},
+                                       node_signature_2 : if were_node_one { bs_node_sig } else { as_node_sig},
+                                       bitcoin_signature_1: if were_node_one { as_bitcoin_sig } else { bs_bitcoin_sig },
+                                       bitcoin_signature_2 : if were_node_one { bs_bitcoin_sig } else { as_bitcoin_sig },
+                                       contents: $unsigned_msg
+                               }
+                       }
+               }
+
+               let unsigned_msg = dummy_unsigned_msg!();
+               sign_msg!(unsigned_msg);
+               assert_eq!(nodes[0].router.handle_channel_announcement(&chan_announcement).unwrap(), true);
+               let _ = nodes[0].router.handle_htlc_fail_channel_update(&msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id : as_chan.get_short_channel_id().unwrap() } );
+
+               // Configured with Network::Testnet
+               let mut unsigned_msg = dummy_unsigned_msg!();
+               unsigned_msg.chain_hash = genesis_block(Network::Bitcoin).header.bitcoin_hash();
+               sign_msg!(unsigned_msg);
+               assert!(nodes[0].router.handle_channel_announcement(&chan_announcement).is_err());
+
+               let mut unsigned_msg = dummy_unsigned_msg!();
+               unsigned_msg.chain_hash = Sha256dHash::from_data(&[1,2,3,4,5,6,7,8,9]);
+               sign_msg!(unsigned_msg);
+               assert!(nodes[0].router.handle_channel_announcement(&chan_announcement).is_err());
+       }
 }