Typify payment_hash and payment_preimage
[rust-lightning] / src / ln / channelmonitor.rs
index 7f584aeba804e3b86ee3a12c18ee9aabb12ae61a..b1e7df29cddfa5bcd3a2394453310a97dbb1e176 100644 (file)
@@ -26,9 +26,11 @@ use secp256k1::{Secp256k1,Message,Signature};
 use secp256k1::key::{SecretKey,PublicKey};
 use secp256k1;
 
-use ln::msgs::{DecodeError, HandleError};
+use ln::msgs::DecodeError;
 use ln::chan_utils;
 use ln::chan_utils::HTLCOutputInCommitment;
+use ln::channelmanager::{HTLCSource, PaymentPreimage, PaymentHash};
+use ln::channel::{ACCEPTED_HTLC_SCRIPT_WEIGHT, OFFERED_HTLC_SCRIPT_WEIGHT};
 use chain::chaininterface::{ChainListener, ChainWatchInterface, BroadcasterInterface};
 use chain::transaction::OutPoint;
 use chain::keysinterface::SpendableOutputDescriptor;
@@ -37,7 +39,7 @@ use util::ser::{ReadableArgs, Readable, Writer, Writeable, WriterWriteAdaptor, U
 use util::sha2::Sha256;
 use util::{byte_utils, events};
 
-use std::collections::HashMap;
+use std::collections::{HashMap, hash_map};
 use std::sync::{Arc,Mutex};
 use std::{hash,cmp, mem};
 
@@ -71,9 +73,27 @@ pub enum ChannelMonitorUpdateErr {
        /// Used to indicate no further channel monitor updates will be allowed (eg we've moved on to a
        /// different watchtower and cannot update with all watchtowers that were previously informed
        /// of this channel). This will force-close the channel in question.
+       ///
+       /// Should also be used to indicate a failure to update the local copy of the channel monitor.
        PermanentFailure,
 }
 
+/// General Err type for ChannelMonitor actions. Generally, this implies that the data provided is
+/// inconsistent with the ChannelMonitor being called. eg for ChannelMonitor::insert_combine this
+/// means you tried to merge two monitors for different channels or for a channel which was
+/// restored from a backup and then generated new commitment updates.
+/// Contains a human-readable error message.
+#[derive(Debug)]
+pub struct MonitorUpdateError(pub &'static str);
+
+/// Simple structure send back by ManyChannelMonitor in case of HTLC detected onchain from a
+/// forward channel and from which info are needed to update HTLC in a backward channel.
+pub struct HTLCUpdate {
+       pub(super) payment_hash: PaymentHash,
+       pub(super) payment_preimage: Option<PaymentPreimage>,
+       pub(super) source: HTLCSource
+}
+
 /// Simple trait indicating ability to track a set of ChannelMonitors and multiplex events between
 /// them. Generally should be implemented by keeping a local SimpleManyChannelMonitor and passing
 /// events to it, while also taking any add_update_monitor events and passing them to some remote
@@ -90,6 +110,10 @@ pub trait ManyChannelMonitor: Send + Sync {
        /// ChainWatchInterfaces such that the provided monitor receives block_connected callbacks with
        /// any spends of it.
        fn add_update_monitor(&self, funding_txo: OutPoint, monitor: ChannelMonitor) -> Result<(), ChannelMonitorUpdateErr>;
+
+       /// Used by ChannelManager to get list of HTLC resolved onchain and which needed to be updated
+       /// with success or failure backward
+       fn fetch_pending_htlc_updated(&self) -> Vec<HTLCUpdate>;
 }
 
 /// A simple implementation of a ManyChannelMonitor and ChainListener. Can be used to create a
@@ -111,6 +135,7 @@ pub struct SimpleManyChannelMonitor<Key> {
        chain_monitor: Arc<ChainWatchInterface>,
        broadcaster: Arc<BroadcasterInterface>,
        pending_events: Mutex<Vec<events::Event>>,
+       pending_htlc_updated: Mutex<HashMap<PaymentHash, Vec<(HTLCSource, Option<PaymentPreimage>)>>>,
        logger: Arc<Logger>,
 }
 
@@ -118,20 +143,55 @@ impl<Key : Send + cmp::Eq + hash::Hash> ChainListener for SimpleManyChannelMonit
        fn block_connected(&self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], _indexes_of_txn_matched: &[u32]) {
                let block_hash = header.bitcoin_hash();
                let mut new_events: Vec<events::Event> = Vec::with_capacity(0);
+               let mut htlc_updated_infos = Vec::new();
                {
                        let mut monitors = self.monitors.lock().unwrap();
                        for monitor in monitors.values_mut() {
-                               let (txn_outputs, spendable_outputs) = monitor.block_connected(txn_matched, height, &block_hash, &*self.broadcaster);
+                               let (txn_outputs, spendable_outputs, mut htlc_updated) = monitor.block_connected(txn_matched, height, &block_hash, &*self.broadcaster);
                                if spendable_outputs.len() > 0 {
                                        new_events.push(events::Event::SpendableOutputs {
                                                outputs: spendable_outputs,
                                        });
                                }
+
                                for (ref txid, ref outputs) in txn_outputs {
                                        for (idx, output) in outputs.iter().enumerate() {
                                                self.chain_monitor.install_watch_outpoint((txid.clone(), idx as u32), &output.script_pubkey);
                                        }
                                }
+                               htlc_updated_infos.append(&mut htlc_updated);
+                       }
+               }
+               {
+                       // ChannelManager will just need to fetch pending_htlc_updated and pass state backward
+                       let mut pending_htlc_updated = self.pending_htlc_updated.lock().unwrap();
+                       for htlc in htlc_updated_infos.drain(..) {
+                               match pending_htlc_updated.entry(htlc.2) {
+                                       hash_map::Entry::Occupied(mut e) => {
+                                               // In case of reorg we may have htlc outputs solved in a different way so
+                                               // we prefer to keep claims but don't store duplicate updates for a given
+                                               // (payment_hash, HTLCSource) pair.
+                                               // TODO: Note that we currently don't really use this as ChannelManager
+                                               // will fail/claim backwards after the first block. We really should delay
+                                               // a few blocks before failing backwards (but can claim backwards
+                                               // immediately) as long as we have a few blocks of headroom.
+                                               let mut existing_claim = false;
+                                               e.get_mut().retain(|htlc_data| {
+                                                       if htlc.0 == htlc_data.0 {
+                                                               if htlc_data.1.is_some() {
+                                                                       existing_claim = true;
+                                                                       true
+                                                               } else { false }
+                                                       } else { true }
+                                               });
+                                               if !existing_claim {
+                                                       e.get_mut().push((htlc.0, htlc.1));
+                                               }
+                                       }
+                                       hash_map::Entry::Vacant(e) => {
+                                               e.insert(vec![(htlc.0, htlc.1)]);
+                                       }
+                               }
                        }
                }
                let mut pending_events = self.pending_events.lock().unwrap();
@@ -150,6 +210,7 @@ impl<Key : Send + cmp::Eq + hash::Hash + 'static> SimpleManyChannelMonitor<Key>
                        chain_monitor,
                        broadcaster,
                        pending_events: Mutex::new(Vec::new()),
+                       pending_htlc_updated: Mutex::new(HashMap::new()),
                        logger,
                });
                let weak_res = Arc::downgrade(&res);
@@ -158,25 +219,31 @@ impl<Key : Send + cmp::Eq + hash::Hash + 'static> SimpleManyChannelMonitor<Key>
        }
 
        /// Adds or udpates the monitor which monitors the channel referred to by the given key.
-       pub fn add_update_monitor_by_key(&self, key: Key, monitor: ChannelMonitor) -> Result<(), HandleError> {
+       pub fn add_update_monitor_by_key(&self, key: Key, monitor: ChannelMonitor) -> Result<(), MonitorUpdateError> {
                let mut monitors = self.monitors.lock().unwrap();
                match monitors.get_mut(&key) {
                        Some(orig_monitor) => {
-                               log_trace!(self, "Updating Channel Monitor for channel {}", log_funding_option!(monitor.funding_txo));
+                               log_trace!(self, "Updating Channel Monitor for channel {}", log_funding_info!(monitor.key_storage));
                                return orig_monitor.insert_combine(monitor);
                        },
                        None => {}
                };
-               match &monitor.funding_txo {
-                       &None => {
-                               log_trace!(self, "Got new Channel Monitor for no-funding-set channel (monitoring all txn!)");
-                               self.chain_monitor.watch_all_txn()
-                       },
-                       &Some((ref outpoint, ref script)) => {
-                               log_trace!(self, "Got new Channel Monitor for channel {}", log_bytes!(outpoint.to_channel_id()[..]));
-                               self.chain_monitor.install_watch_tx(&outpoint.txid, script);
-                               self.chain_monitor.install_watch_outpoint((outpoint.txid, outpoint.index as u32), script);
+               match monitor.key_storage {
+                       Storage::Local { ref funding_info, .. } => {
+                               match funding_info {
+                                       &None => {
+                                               return Err(MonitorUpdateError("Try to update a useless monitor without funding_txo !"));
+                                       },
+                                       &Some((ref outpoint, ref script)) => {
+                                               log_trace!(self, "Got new Channel Monitor for channel {}", log_bytes!(outpoint.to_channel_id()[..]));
+                                               self.chain_monitor.install_watch_tx(&outpoint.txid, script);
+                                               self.chain_monitor.install_watch_outpoint((outpoint.txid, outpoint.index as u32), script);
+                                       },
+                               }
                        },
+                       Storage::Watchtower { .. } => {
+                               self.chain_monitor.watch_all_txn();
+                       }
                }
                monitors.insert(key, monitor);
                Ok(())
@@ -190,6 +257,21 @@ impl ManyChannelMonitor for SimpleManyChannelMonitor<OutPoint> {
                        Err(_) => Err(ChannelMonitorUpdateErr::PermanentFailure),
                }
        }
+
+       fn fetch_pending_htlc_updated(&self) -> Vec<HTLCUpdate> {
+               let mut updated = self.pending_htlc_updated.lock().unwrap();
+               let mut pending_htlcs_updated = Vec::with_capacity(updated.len());
+               for (k, v) in updated.drain() {
+                       for htlc_data in v {
+                               pending_htlcs_updated.push(HTLCUpdate {
+                                       payment_hash: k,
+                                       payment_preimage: htlc_data.1,
+                                       source: htlc_data.0,
+                               });
+                       }
+               }
+               pending_htlcs_updated
+       }
 }
 
 impl<Key : Send + cmp::Eq + hash::Hash> events::EventsProvider for SimpleManyChannelMonitor<Key> {
@@ -215,8 +297,8 @@ pub(crate) const CLTV_CLAIM_BUFFER: u32 = 6;
 pub(crate) const HTLC_FAIL_TIMEOUT_BLOCKS: u32 = 3;
 
 #[derive(Clone, PartialEq)]
-enum KeyStorage {
-       PrivMode {
+enum Storage {
+       Local {
                revocation_base_key: SecretKey,
                htlc_base_key: SecretKey,
                delayed_payment_base_key: SecretKey,
@@ -224,11 +306,13 @@ enum KeyStorage {
                shutdown_pubkey: PublicKey,
                prev_latest_per_commitment_point: Option<PublicKey>,
                latest_per_commitment_point: Option<PublicKey>,
+               funding_info: Option<(OutPoint, Script)>,
+               current_remote_commitment_txid: Option<Sha256dHash>,
+               prev_remote_commitment_txid: Option<Sha256dHash>,
        },
-       SigsMode {
+       Watchtower {
                revocation_base_key: PublicKey,
                htlc_base_key: PublicKey,
-               sigs: HashMap<Sha256dHash, Signature>,
        }
 }
 
@@ -243,6 +327,7 @@ struct LocalSignedTx {
        delayed_payment_key: PublicKey,
        feerate_per_kw: u64,
        htlc_outputs: Vec<(HTLCOutputInCommitment, Signature, Signature)>,
+       htlc_sources: Vec<(PaymentHash, HTLCSource, Option<u32>)>,
 }
 
 const SERIALIZATION_VERSION: u8 = 1;
@@ -255,10 +340,9 @@ const MIN_SERIALIZATION_VERSION: u8 = 1;
 /// information and are actively monitoring the chain.
 #[derive(Clone)]
 pub struct ChannelMonitor {
-       funding_txo: Option<(OutPoint, Script)>,
        commitment_transaction_number_obscure_factor: u64,
 
-       key_storage: KeyStorage,
+       key_storage: Storage,
        their_htlc_base_key: Option<PublicKey>,
        their_delayed_payment_base_key: Option<PublicKey>,
        // first is the idx of the first of the two revocation points
@@ -268,7 +352,7 @@ pub struct ChannelMonitor {
        their_to_self_delay: Option<u16>,
 
        old_secrets: [([u8; 32], u64); 49],
-       remote_claimable_outpoints: HashMap<Sha256dHash, Vec<HTLCOutputInCommitment>>,
+       remote_claimable_outpoints: HashMap<Sha256dHash, (Vec<HTLCOutputInCommitment>, Vec<(PaymentHash, HTLCSource, Option<u32>)>)>,
        /// We cannot identify HTLC-Success or HTLC-Timeout transactions by themselves on the chain.
        /// Nor can we figure out their commitment numbers without the commitment transaction they are
        /// spending. Thus, in order to claim them via revocation key, we track all the remote
@@ -279,7 +363,7 @@ pub struct ChannelMonitor {
        /// Maps payment_hash values to commitment numbers for remote transactions for non-revoked
        /// remote transactions (ie should remain pretty small).
        /// Serialized to disk but should generally not be sent to Watchtowers.
-       remote_hash_commitment_number: HashMap<[u8; 32], u64>,
+       remote_hash_commitment_number: HashMap<PaymentHash, u64>,
 
        // We store two local commitment transactions to avoid any race conditions where we may update
        // some monitors (potentially on watchtowers) but then fail to update others, resulting in the
@@ -292,7 +376,7 @@ pub struct ChannelMonitor {
        // deserialization
        current_remote_commitment_number: u64,
 
-       payment_preimages: HashMap<[u8; 32], [u8; 32]>,
+       payment_preimages: HashMap<PaymentHash, PaymentPreimage>,
 
        destination_script: Script,
 
@@ -311,8 +395,7 @@ pub struct ChannelMonitor {
 /// underlying object
 impl PartialEq for ChannelMonitor {
        fn eq(&self, other: &Self) -> bool {
-               if self.funding_txo != other.funding_txo ||
-                       self.commitment_transaction_number_obscure_factor != other.commitment_transaction_number_obscure_factor ||
+               if self.commitment_transaction_number_obscure_factor != other.commitment_transaction_number_obscure_factor ||
                        self.key_storage != other.key_storage ||
                        self.their_htlc_base_key != other.their_htlc_base_key ||
                        self.their_delayed_payment_base_key != other.their_delayed_payment_base_key ||
@@ -343,10 +426,9 @@ impl PartialEq for ChannelMonitor {
 impl ChannelMonitor {
        pub(super) fn new(revocation_base_key: &SecretKey, delayed_payment_base_key: &SecretKey, htlc_base_key: &SecretKey, payment_base_key: &SecretKey, shutdown_pubkey: &PublicKey, our_to_self_delay: u16, destination_script: Script, logger: Arc<Logger>) -> ChannelMonitor {
                ChannelMonitor {
-                       funding_txo: None,
                        commitment_transaction_number_obscure_factor: 0,
 
-                       key_storage: KeyStorage::PrivMode {
+                       key_storage: Storage::Local {
                                revocation_base_key: revocation_base_key.clone(),
                                htlc_base_key: htlc_base_key.clone(),
                                delayed_payment_base_key: delayed_payment_base_key.clone(),
@@ -354,6 +436,9 @@ impl ChannelMonitor {
                                shutdown_pubkey: shutdown_pubkey.clone(),
                                prev_latest_per_commitment_point: None,
                                latest_per_commitment_point: None,
+                               funding_info: None,
+                               current_remote_commitment_txid: None,
+                               prev_remote_commitment_txid: None,
                        },
                        their_htlc_base_key: None,
                        their_delayed_payment_base_key: None,
@@ -408,16 +493,28 @@ impl ChannelMonitor {
        /// Inserts a revocation secret into this channel monitor. Prunes old preimages if neither
        /// needed by local commitment transactions HTCLs nor by remote ones. Unless we haven't already seen remote
        /// commitment transaction's secret, they are de facto pruned (we can use revocation key).
-       pub(super) fn provide_secret(&mut self, idx: u64, secret: [u8; 32]) -> Result<(), HandleError> {
+       pub(super) fn provide_secret(&mut self, idx: u64, secret: [u8; 32]) -> Result<(), MonitorUpdateError> {
                let pos = ChannelMonitor::place_secret(idx);
                for i in 0..pos {
                        let (old_secret, old_idx) = self.old_secrets[i as usize];
                        if ChannelMonitor::derive_secret(secret, pos, old_idx) != old_secret {
-                               return Err(HandleError{err: "Previous secret did not match new one", action: None})
+                               return Err(MonitorUpdateError("Previous secret did not match new one"));
                        }
                }
+               if self.get_min_seen_secret() <= idx {
+                       return Ok(());
+               }
                self.old_secrets[pos as usize] = (secret, idx);
 
+               // Prune HTLCs from the previous remote commitment tx so we don't generate failure/fulfill
+               // events for now-revoked/fulfilled HTLCs.
+               // TODO: We should probably consider whether we're really getting the next secret here.
+               if let Storage::Local { ref mut prev_remote_commitment_txid, .. } = self.key_storage {
+                       if let Some(txid) = prev_remote_commitment_txid.take() {
+                               self.remote_claimable_outpoints.get_mut(&txid).unwrap().1 = Vec::new();
+                       }
+               }
+
                if !self.payment_preimages.is_empty() {
                        let local_signed_commitment_tx = self.current_local_signed_commitment_tx.as_ref().expect("Channel needs at least an initial commitment tx !");
                        let prev_local_signed_commitment_tx = self.prev_local_signed_commitment_tx.as_ref();
@@ -453,46 +550,45 @@ impl ChannelMonitor {
                Ok(())
        }
 
-       /// Tracks the next revocation point which may be required to claim HTLC outputs which we know
-       /// the preimage of in case the remote end force-closes using their latest state. When called at
-       /// channel opening revocation point is the CURRENT one used for first commitment tx. Needed in case of sizeable push_msat.
-       pub(super) fn provide_their_next_revocation_point(&mut self, their_next_revocation_point: Option<(u64, PublicKey)>) {
-               if let Some(new_revocation_point) = their_next_revocation_point {
-                       match self.their_cur_revocation_points {
-                               Some(old_points) => {
-                                       if old_points.0 == new_revocation_point.0 + 1 {
-                                               self.their_cur_revocation_points = Some((old_points.0, old_points.1, Some(new_revocation_point.1)));
-                                       } else if old_points.0 == new_revocation_point.0 + 2 {
-                                               if let Some(old_second_point) = old_points.2 {
-                                                       self.their_cur_revocation_points = Some((old_points.0 - 1, old_second_point, Some(new_revocation_point.1)));
-                                               } else {
-                                                       self.their_cur_revocation_points = Some((new_revocation_point.0, new_revocation_point.1, None));
-                                               }
-                                       } else {
-                                               self.their_cur_revocation_points = Some((new_revocation_point.0, new_revocation_point.1, None));
-                                       }
-                               },
-                               None => {
-                                       self.their_cur_revocation_points = Some((new_revocation_point.0, new_revocation_point.1, None));
-                               }
-                       }
-               }
-       }
-
        /// Informs this monitor of the latest remote (ie non-broadcastable) commitment transaction.
        /// The monitor watches for it to be broadcasted and then uses the HTLC information (and
        /// possibly future revocation/preimage information) to claim outputs where possible.
        /// We cache also the mapping hash:commitment number to lighten pruning of old preimages by watchtowers.
-       pub(super) fn provide_latest_remote_commitment_tx_info(&mut self, unsigned_commitment_tx: &Transaction, htlc_outputs: Vec<HTLCOutputInCommitment>, commitment_number: u64) {
+       pub(super) fn provide_latest_remote_commitment_tx_info(&mut self, unsigned_commitment_tx: &Transaction, htlc_outputs: Vec<HTLCOutputInCommitment>, htlc_sources: Vec<(PaymentHash, HTLCSource, Option<u32>)>, commitment_number: u64, their_revocation_point: PublicKey) {
                // TODO: Encrypt the htlc_outputs data with the single-hash of the commitment transaction
                // so that a remote monitor doesn't learn anything unless there is a malicious close.
                // (only maybe, sadly we cant do the same for local info, as we need to be aware of
                // timeouts)
-               for htlc in &htlc_outputs {
+               for ref htlc in &htlc_outputs {
                        self.remote_hash_commitment_number.insert(htlc.payment_hash, commitment_number);
                }
-               self.remote_claimable_outpoints.insert(unsigned_commitment_tx.txid(), htlc_outputs);
+
+               let new_txid = unsigned_commitment_tx.txid();
+               if let Storage::Local { ref mut current_remote_commitment_txid, ref mut prev_remote_commitment_txid, .. } = self.key_storage {
+                       *prev_remote_commitment_txid = current_remote_commitment_txid.take();
+                       *current_remote_commitment_txid = Some(new_txid);
+               }
+               self.remote_claimable_outpoints.insert(new_txid, (htlc_outputs, htlc_sources));
                self.current_remote_commitment_number = commitment_number;
+               //TODO: Merge this into the other per-remote-transaction output storage stuff
+               match self.their_cur_revocation_points {
+                       Some(old_points) => {
+                               if old_points.0 == commitment_number + 1 {
+                                       self.their_cur_revocation_points = Some((old_points.0, old_points.1, Some(their_revocation_point)));
+                               } else if old_points.0 == commitment_number + 2 {
+                                       if let Some(old_second_point) = old_points.2 {
+                                               self.their_cur_revocation_points = Some((old_points.0 - 1, old_second_point, Some(their_revocation_point)));
+                                       } else {
+                                               self.their_cur_revocation_points = Some((commitment_number, their_revocation_point, None));
+                                       }
+                               } else {
+                                       self.their_cur_revocation_points = Some((commitment_number, their_revocation_point, None));
+                               }
+                       },
+                       None => {
+                               self.their_cur_revocation_points = Some((commitment_number, their_revocation_point, None));
+                       }
+               }
        }
 
        /// Informs this monitor of the latest local (ie broadcastable) commitment transaction. The
@@ -500,9 +596,9 @@ impl ChannelMonitor {
        /// is important that any clones of this channel monitor (including remote clones) by kept
        /// up-to-date as our local commitment transaction is updated.
        /// Panics if set_their_to_self_delay has never been called.
-       /// Also update KeyStorage with latest local per_commitment_point to derive local_delayedkey in
+       /// Also update Storage with latest local per_commitment_point to derive local_delayedkey in
        /// case of onchain HTLC tx
-       pub(super) fn provide_latest_local_commitment_tx_info(&mut self, signed_commitment_tx: Transaction, local_keys: chan_utils::TxCreationKeys, feerate_per_kw: u64, htlc_outputs: Vec<(HTLCOutputInCommitment, Signature, Signature)>) {
+       pub(super) fn provide_latest_local_commitment_tx_info(&mut self, signed_commitment_tx: Transaction, local_keys: chan_utils::TxCreationKeys, feerate_per_kw: u64, htlc_outputs: Vec<(HTLCOutputInCommitment, Signature, Signature)>, htlc_sources: Vec<(PaymentHash, HTLCSource, Option<u32>)>) {
                assert!(self.their_to_self_delay.is_some());
                self.prev_local_signed_commitment_tx = self.current_local_signed_commitment_tx.take();
                self.current_local_signed_commitment_tx = Some(LocalSignedTx {
@@ -514,38 +610,48 @@ impl ChannelMonitor {
                        delayed_payment_key: local_keys.a_delayed_payment_key,
                        feerate_per_kw,
                        htlc_outputs,
+                       htlc_sources,
                });
-               self.key_storage = if let KeyStorage::PrivMode { ref revocation_base_key, ref htlc_base_key, ref delayed_payment_base_key, ref payment_base_key, ref shutdown_pubkey, ref latest_per_commitment_point, .. } = self.key_storage {
-                       KeyStorage::PrivMode {
-                               revocation_base_key: *revocation_base_key,
-                               htlc_base_key: *htlc_base_key,
-                               delayed_payment_base_key: *delayed_payment_base_key,
-                               payment_base_key: *payment_base_key,
-                               shutdown_pubkey: *shutdown_pubkey,
-                               prev_latest_per_commitment_point: *latest_per_commitment_point,
-                               latest_per_commitment_point: Some(local_keys.per_commitment_point),
-                       }
-               } else { unimplemented!(); };
+
+               if let Storage::Local { ref mut latest_per_commitment_point, .. } = self.key_storage {
+                       *latest_per_commitment_point = Some(local_keys.per_commitment_point);
+               } else {
+                       panic!("Channel somehow ended up with its internal ChannelMonitor being in Watchtower mode?");
+               }
        }
 
        /// Provides a payment_hash->payment_preimage mapping. Will be automatically pruned when all
        /// commitment_tx_infos which contain the payment hash have been revoked.
-       pub(super) fn provide_payment_preimage(&mut self, payment_hash: &[u8; 32], payment_preimage: &[u8; 32]) {
+       pub(super) fn provide_payment_preimage(&mut self, payment_hash: &PaymentHash, payment_preimage: &PaymentPreimage) {
                self.payment_preimages.insert(payment_hash.clone(), payment_preimage.clone());
        }
 
        /// Combines this ChannelMonitor with the information contained in the other ChannelMonitor.
        /// After a successful call this ChannelMonitor is up-to-date and is safe to use to monitor the
        /// chain for new blocks/transactions.
-       pub fn insert_combine(&mut self, mut other: ChannelMonitor) -> Result<(), HandleError> {
-               if self.funding_txo.is_some() {
-                       // We should be able to compare the entire funding_txo, but in fuzztarget its trivially
-                       // easy to collide the funding_txo hash and have a different scriptPubKey.
-                       if other.funding_txo.is_some() && other.funding_txo.as_ref().unwrap().0 != self.funding_txo.as_ref().unwrap().0 {
-                               return Err(HandleError{err: "Funding transaction outputs are not identical!", action: None});
-                       }
-               } else {
-                       self.funding_txo = other.funding_txo.take();
+       pub fn insert_combine(&mut self, mut other: ChannelMonitor) -> Result<(), MonitorUpdateError> {
+               match self.key_storage {
+                       Storage::Local { ref funding_info, .. } => {
+                               if funding_info.is_none() { return Err(MonitorUpdateError("Try to combine a Local monitor without funding_info")); }
+                               let our_funding_info = funding_info;
+                               if let Storage::Local { ref funding_info, .. } = other.key_storage {
+                                       if funding_info.is_none() { return Err(MonitorUpdateError("Try to combine a Local monitor without funding_info")); }
+                                       // We should be able to compare the entire funding_txo, but in fuzztarget its trivially
+                                       // easy to collide the funding_txo hash and have a different scriptPubKey.
+                                       if funding_info.as_ref().unwrap().0 != our_funding_info.as_ref().unwrap().0 {
+                                               return Err(MonitorUpdateError("Funding transaction outputs are not identical!"));
+                                       }
+                               } else {
+                                       return Err(MonitorUpdateError("Try to combine a Local monitor with a Watchtower one !"));
+                               }
+                       },
+                       Storage::Watchtower { .. } => {
+                               if let Storage::Watchtower { .. } = other.key_storage {
+                                       unimplemented!();
+                               } else {
+                                       return Err(MonitorUpdateError("Try to combine a Watchtower monitor with a Local one !"));
+                               }
+                       },
                }
                let other_min_secret = other.get_min_seen_secret();
                let our_min_secret = self.get_min_seen_secret();
@@ -593,8 +699,15 @@ impl ChannelMonitor {
        /// provides slightly better privacy.
        /// It's the responsibility of the caller to register outpoint and script with passing the former
        /// value as key to add_update_monitor.
-       pub(super) fn set_funding_info(&mut self, funding_info: (OutPoint, Script)) {
-               self.funding_txo = Some(funding_info);
+       pub(super) fn set_funding_info(&mut self, new_funding_info: (OutPoint, Script)) {
+               match self.key_storage {
+                       Storage::Local { ref mut funding_info, .. } => {
+                               *funding_info = Some(new_funding_info);
+                       },
+                       Storage::Watchtower { .. } => {
+                               panic!("Channel somehow ended up with its internal ChannelMonitor being in Watchtower mode?");
+                       }
+               }
        }
 
        /// We log these base keys at channel opening to being able to rebuild redeemscript in case of leaked revoked commit tx
@@ -608,14 +721,28 @@ impl ChannelMonitor {
        }
 
        pub(super) fn unset_funding_info(&mut self) {
-               self.funding_txo = None;
+               match self.key_storage {
+                       Storage::Local { ref mut funding_info, .. } => {
+                               *funding_info = None;
+                       },
+                       Storage::Watchtower { .. } => {
+                               panic!("Channel somehow ended up with its internal ChannelMonitor being in Watchtower mode?");
+                       },
+               }
        }
 
        /// Gets the funding transaction outpoint of the channel this ChannelMonitor is monitoring for.
        pub fn get_funding_txo(&self) -> Option<OutPoint> {
-               match self.funding_txo {
-                       Some((outpoint, _)) => Some(outpoint),
-                       None => None
+               match self.key_storage {
+                       Storage::Local { ref funding_info, .. } => {
+                               match funding_info {
+                                       &Some((outpoint, _)) => Some(outpoint),
+                                       &None => None
+                               }
+                       },
+                       Storage::Watchtower { .. } => {
+                               return None;
+                       }
                }
        }
 
@@ -640,24 +767,11 @@ impl ChannelMonitor {
                writer.write_all(&[SERIALIZATION_VERSION; 1])?;
                writer.write_all(&[MIN_SERIALIZATION_VERSION; 1])?;
 
-               match &self.funding_txo {
-                       &Some((ref outpoint, ref script)) => {
-                               writer.write_all(&outpoint.txid[..])?;
-                               writer.write_all(&byte_utils::be16_to_array(outpoint.index))?;
-                               script.write(writer)?;
-                       },
-                       &None => {
-                               // We haven't even been initialized...not sure why anyone is serializing us, but
-                               // not much to give them.
-                               return Ok(());
-                       },
-               }
-
                // Set in initial Channel-object creation, so should always be set by now:
                U48(self.commitment_transaction_number_obscure_factor).write(writer)?;
 
                match self.key_storage {
-                       KeyStorage::PrivMode { ref revocation_base_key, ref htlc_base_key, ref delayed_payment_base_key, ref payment_base_key, ref shutdown_pubkey, ref prev_latest_per_commitment_point, ref latest_per_commitment_point } => {
+                       Storage::Local { ref revocation_base_key, ref htlc_base_key, ref delayed_payment_base_key, ref payment_base_key, ref shutdown_pubkey, ref prev_latest_per_commitment_point, ref latest_per_commitment_point, ref funding_info, current_remote_commitment_txid, prev_remote_commitment_txid } => {
                                writer.write_all(&[0; 1])?;
                                writer.write_all(&revocation_base_key[..])?;
                                writer.write_all(&htlc_base_key[..])?;
@@ -676,9 +790,30 @@ impl ChannelMonitor {
                                } else {
                                        writer.write_all(&[0; 1])?;
                                }
-
+                               match funding_info  {
+                                       &Some((ref outpoint, ref script)) => {
+                                               writer.write_all(&outpoint.txid[..])?;
+                                               writer.write_all(&byte_utils::be16_to_array(outpoint.index))?;
+                                               script.write(writer)?;
+                                       },
+                                       &None => {
+                                               debug_assert!(false, "Try to serialize a useless Local monitor !");
+                                       },
+                               }
+                               if let Some(ref txid) = current_remote_commitment_txid {
+                                       writer.write_all(&[1; 1])?;
+                                       writer.write_all(&txid[..])?;
+                               } else {
+                                       writer.write_all(&[0; 1])?;
+                               }
+                               if let Some(ref txid) = prev_remote_commitment_txid {
+                                       writer.write_all(&[1; 1])?;
+                                       writer.write_all(&txid[..])?;
+                               } else {
+                                       writer.write_all(&[0; 1])?;
+                               }
                        },
-                       KeyStorage::SigsMode { .. } => unimplemented!(),
+                       Storage::Watchtower { .. } => unimplemented!(),
                }
 
                writer.write_all(&self.their_htlc_base_key.as_ref().unwrap().serialize())?;
@@ -715,18 +850,36 @@ impl ChannelMonitor {
                                writer.write_all(&[$htlc_output.offered as u8; 1])?;
                                writer.write_all(&byte_utils::be64_to_array($htlc_output.amount_msat))?;
                                writer.write_all(&byte_utils::be32_to_array($htlc_output.cltv_expiry))?;
-                               writer.write_all(&$htlc_output.payment_hash)?;
+                               writer.write_all(&$htlc_output.payment_hash.0[..])?;
                                writer.write_all(&byte_utils::be32_to_array($htlc_output.transaction_output_index))?;
                        }
                }
 
+               macro_rules! serialize_htlc_source {
+                       ($htlc_source: expr) => {
+                               $htlc_source.0.write(writer)?;
+                               $htlc_source.1.write(writer)?;
+                               if let &Some(ref txo) = &$htlc_source.2 {
+                                       writer.write_all(&[1; 1])?;
+                                       txo.write(writer)?;
+                               } else {
+                                       writer.write_all(&[0; 1])?;
+                               }
+                       }
+               }
+
+
                writer.write_all(&byte_utils::be64_to_array(self.remote_claimable_outpoints.len() as u64))?;
-               for (ref txid, ref htlc_outputs) in self.remote_claimable_outpoints.iter() {
+               for (ref txid, &(ref htlc_infos, ref htlc_sources)) in self.remote_claimable_outpoints.iter() {
                        writer.write_all(&txid[..])?;
-                       writer.write_all(&byte_utils::be64_to_array(htlc_outputs.len() as u64))?;
-                       for htlc_output in htlc_outputs.iter() {
+                       writer.write_all(&byte_utils::be64_to_array(htlc_infos.len() as u64))?;
+                       for ref htlc_output in htlc_infos.iter() {
                                serialize_htlc_in_commitment!(htlc_output);
                        }
+                       writer.write_all(&byte_utils::be64_to_array(htlc_sources.len() as u64))?;
+                       for ref htlc_source in htlc_sources.iter() {
+                               serialize_htlc_source!(htlc_source);
+                       }
                }
 
                writer.write_all(&byte_utils::be64_to_array(self.remote_commitment_txn_on_chain.len() as u64))?;
@@ -742,7 +895,7 @@ impl ChannelMonitor {
                if for_local_storage {
                        writer.write_all(&byte_utils::be64_to_array(self.remote_hash_commitment_number.len() as u64))?;
                        for (ref payment_hash, commitment_number) in self.remote_hash_commitment_number.iter() {
-                               writer.write_all(*payment_hash)?;
+                               writer.write_all(&payment_hash.0[..])?;
                                writer.write_all(&byte_utils::be48_to_array(*commitment_number))?;
                        }
                } else {
@@ -770,6 +923,10 @@ impl ChannelMonitor {
                                        writer.write_all(&their_sig.serialize_compact(&self.secp_ctx))?;
                                        writer.write_all(&our_sig.serialize_compact(&self.secp_ctx))?;
                                }
+                               writer.write_all(&byte_utils::be64_to_array($local_tx.htlc_sources.len() as u64))?;
+                               for ref htlc_source in $local_tx.htlc_sources.iter() {
+                                       serialize_htlc_source!(htlc_source);
+                               }
                        }
                }
 
@@ -795,7 +952,7 @@ impl ChannelMonitor {
 
                writer.write_all(&byte_utils::be64_to_array(self.payment_preimages.len() as u64))?;
                for payment_preimage in self.payment_preimages.values() {
-                       writer.write_all(payment_preimage)?;
+                       writer.write_all(&payment_preimage.0[..])?;
                }
 
                self.last_block_hash.write(writer)?;
@@ -830,14 +987,14 @@ impl ChannelMonitor {
        //we want to leave out (eg funding_txo, etc).
 
        /// Can only fail if idx is < get_min_seen_secret
-       pub(super) fn get_secret(&self, idx: u64) -> Result<[u8; 32], HandleError> {
+       pub(super) fn get_secret(&self, idx: u64) -> Option<[u8; 32]> {
                for i in 0..self.old_secrets.len() {
                        if (idx & (!((1 << i) - 1))) == self.old_secrets[i].1 {
-                               return Ok(ChannelMonitor::derive_secret(self.old_secrets[i].0, i as u8, idx))
+                               return Some(ChannelMonitor::derive_secret(self.old_secrets[i].0, i as u8, idx))
                        }
                }
                assert!(idx < self.get_min_seen_secret());
-               Err(HandleError{err: "idx too low", action: None})
+               None
        }
 
        pub(super) fn get_min_seen_secret(&self) -> u64 {
@@ -865,12 +1022,15 @@ impl ChannelMonitor {
        /// data in remote_claimable_outpoints. Will directly claim any HTLC outputs which expire at a
        /// height > height + CLTV_SHARED_CLAIM_BUFFER. In any case, will install monitoring for
        /// HTLC-Success/HTLC-Timeout transactions.
-       fn check_spend_remote_transaction(&mut self, tx: &Transaction, height: u32) -> (Vec<Transaction>, (Sha256dHash, Vec<TxOut>), Vec<SpendableOutputDescriptor>) {
+       /// Return updates for HTLC pending in the channel and failed automatically by the broadcast of
+       /// revoked remote commitment tx
+       fn check_spend_remote_transaction(&mut self, tx: &Transaction, height: u32) -> (Vec<Transaction>, (Sha256dHash, Vec<TxOut>), Vec<SpendableOutputDescriptor>, Vec<(HTLCSource, Option<PaymentPreimage>, PaymentHash)>)  {
                // Most secp and related errors trying to create keys means we have no hope of constructing
                // a spend transaction...so we return no transactions to broadcast
                let mut txn_to_broadcast = Vec::new();
                let mut watch_outputs = Vec::new();
                let mut spendable_outputs = Vec::new();
+               let mut htlc_updated = Vec::new();
 
                let commitment_txid = tx.txid(); //TODO: This is gonna be a performance bottleneck for watchtowers!
                let per_commitment_option = self.remote_claimable_outpoints.get(&commitment_txid);
@@ -879,7 +1039,7 @@ impl ChannelMonitor {
                        ( $thing : expr ) => {
                                match $thing {
                                        Ok(a) => a,
-                                       Err(_) => return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs)
+                                       Err(_) => return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated)
                                }
                        };
                }
@@ -888,27 +1048,36 @@ impl ChannelMonitor {
                if commitment_number >= self.get_min_seen_secret() {
                        let secret = self.get_secret(commitment_number).unwrap();
                        let per_commitment_key = ignore_error!(SecretKey::from_slice(&self.secp_ctx, &secret));
-                       let (revocation_pubkey, b_htlc_key) = match self.key_storage {
-                               KeyStorage::PrivMode { ref revocation_base_key, ref htlc_base_key, .. } => {
+                       let (revocation_pubkey, b_htlc_key, local_payment_key) = match self.key_storage {
+                               Storage::Local { ref revocation_base_key, ref htlc_base_key, ref payment_base_key, .. } => {
                                        let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &per_commitment_key);
                                        (ignore_error!(chan_utils::derive_public_revocation_key(&self.secp_ctx, &per_commitment_point, &PublicKey::from_secret_key(&self.secp_ctx, &revocation_base_key))),
-                                       ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, &per_commitment_point, &PublicKey::from_secret_key(&self.secp_ctx, &htlc_base_key))))
+                                       ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, &per_commitment_point, &PublicKey::from_secret_key(&self.secp_ctx, &htlc_base_key))),
+                                       Some(ignore_error!(chan_utils::derive_private_key(&self.secp_ctx, &per_commitment_point, &payment_base_key))))
                                },
-                               KeyStorage::SigsMode { ref revocation_base_key, ref htlc_base_key, .. } => {
+                               Storage::Watchtower { ref revocation_base_key, ref htlc_base_key, .. } => {
                                        let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &per_commitment_key);
                                        (ignore_error!(chan_utils::derive_public_revocation_key(&self.secp_ctx, &per_commitment_point, &revocation_base_key)),
-                                       ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, &per_commitment_point, &htlc_base_key)))
+                                       ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, &per_commitment_point, &htlc_base_key)),
+                                       None)
                                },
                        };
                        let delayed_key = ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, &PublicKey::from_secret_key(&self.secp_ctx, &per_commitment_key), &self.their_delayed_payment_base_key.unwrap()));
                        let a_htlc_key = match self.their_htlc_base_key {
-                               None => return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs),
+                               None => return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated),
                                Some(their_htlc_base_key) => ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, &PublicKey::from_secret_key(&self.secp_ctx, &per_commitment_key), &their_htlc_base_key)),
                        };
 
                        let revokeable_redeemscript = chan_utils::get_revokeable_redeemscript(&revocation_pubkey, self.our_to_self_delay, &delayed_key);
                        let revokeable_p2wsh = revokeable_redeemscript.to_v0_p2wsh();
 
+                       let local_payment_p2wpkh = if let Some(payment_key) = local_payment_key {
+                               // Note that the Network here is ignored as we immediately drop the address for the
+                               // script_pubkey version.
+                               let payment_hash160 = Hash160::from_data(&PublicKey::from_secret_key(&self.secp_ctx, &payment_key).serialize());
+                               Some(Builder::new().push_opcode(opcodes::All::OP_PUSHBYTES_0).push_slice(&payment_hash160[..]).into_script())
+                       } else { None };
+
                        let mut total_value = 0;
                        let mut values = Vec::new();
                        let mut inputs = Vec::new();
@@ -928,23 +1097,12 @@ impl ChannelMonitor {
                                        htlc_idxs.push(None);
                                        values.push(outp.value);
                                        total_value += outp.value;
-                               } else if outp.script_pubkey.is_v0_p2wpkh() {
-                                       match self.key_storage {
-                                               KeyStorage::PrivMode { ref payment_base_key, .. } => {
-                                                       let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &per_commitment_key);
-                                                       if let Ok(local_key) = chan_utils::derive_private_key(&self.secp_ctx, &per_commitment_point, &payment_base_key) {
-                                                               spendable_outputs.push(SpendableOutputDescriptor::DynamicOutputP2WPKH {
-                                                                       outpoint: BitcoinOutPoint { txid: commitment_txid, vout: idx as u32 },
-                                                                       key: local_key,
-                                                                       output: outp.clone(),
-                                                               });
-                                                       }
-                                               }
-                                               KeyStorage::SigsMode { .. } => {
-                                                       //TODO: we need to ensure an offline client will generate the event when it
-                                                       // cames back online after only the watchtower saw the transaction
-                                               }
-                                       }
+                               } else if Some(&outp.script_pubkey) == local_payment_p2wpkh.as_ref() {
+                                       spendable_outputs.push(SpendableOutputDescriptor::DynamicOutputP2WPKH {
+                                               outpoint: BitcoinOutPoint { txid: commitment_txid, vout: idx as u32 },
+                                               key: local_payment_key.unwrap(),
+                                               output: outp.clone(),
+                                       });
                                }
                        }
 
@@ -952,16 +1110,16 @@ impl ChannelMonitor {
                                ($sighash_parts: expr, $input: expr, $htlc_idx: expr, $amount: expr) => {
                                        {
                                                let (sig, redeemscript) = match self.key_storage {
-                                                       KeyStorage::PrivMode { ref revocation_base_key, .. } => {
+                                                       Storage::Local { ref revocation_base_key, .. } => {
                                                                let redeemscript = if $htlc_idx.is_none() { revokeable_redeemscript.clone() } else {
-                                                                       let htlc = &per_commitment_option.unwrap()[$htlc_idx.unwrap()];
+                                                                       let htlc = &per_commitment_option.unwrap().0[$htlc_idx.unwrap()];
                                                                        chan_utils::get_htlc_redeemscript_with_explicit_keys(htlc, &a_htlc_key, &b_htlc_key, &revocation_pubkey)
                                                                };
                                                                let sighash = ignore_error!(Message::from_slice(&$sighash_parts.sighash_all(&$input, &redeemscript, $amount)[..]));
                                                                let revocation_key = ignore_error!(chan_utils::derive_private_revocation_key(&self.secp_ctx, &per_commitment_key, &revocation_base_key));
                                                                (self.secp_ctx.sign(&sighash, &revocation_key), redeemscript)
                                                        },
-                                                       KeyStorage::SigsMode { .. } => {
+                                                       Storage::Watchtower { .. } => {
                                                                unimplemented!();
                                                        }
                                                };
@@ -977,15 +1135,15 @@ impl ChannelMonitor {
                                }
                        }
 
-                       if let Some(per_commitment_data) = per_commitment_option {
+                       if let Some(&(ref per_commitment_data, _)) = per_commitment_option {
                                inputs.reserve_exact(per_commitment_data.len());
 
-                               for (idx, htlc) in per_commitment_data.iter().enumerate() {
+                               for (idx, ref htlc) in per_commitment_data.iter().enumerate() {
                                        let expected_script = chan_utils::get_htlc_redeemscript_with_explicit_keys(&htlc, &a_htlc_key, &b_htlc_key, &revocation_pubkey);
                                        if htlc.transaction_output_index as usize >= tx.output.len() ||
                                                        tx.output[htlc.transaction_output_index as usize].value != htlc.amount_msat / 1000 ||
                                                        tx.output[htlc.transaction_output_index as usize].script_pubkey != expected_script.to_v0_p2wsh() {
-                                               return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs); // Corrupted per_commitment_data, fuck this user
+                                               return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated); // Corrupted per_commitment_data, fuck this user
                                        }
                                        let input = TxIn {
                                                previous_output: BitcoinOutPoint {
@@ -1023,7 +1181,7 @@ impl ChannelMonitor {
                                watch_outputs.append(&mut tx.output.clone());
                                self.remote_commitment_txn_on_chain.insert(commitment_txid, (commitment_number, tx.output.iter().map(|output| { output.script_pubkey.clone() }).collect()));
                        }
-                       if inputs.is_empty() { return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs); } // Nothing to be done...probably a false positive/local tx
+                       if inputs.is_empty() { return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated); } // Nothing to be done...probably a false positive/local tx
 
                        let outputs = vec!(TxOut {
                                script_pubkey: self.destination_script.clone(),
@@ -1049,6 +1207,27 @@ impl ChannelMonitor {
                                output: spend_tx.output[0].clone(),
                        });
                        txn_to_broadcast.push(spend_tx);
+
+                       // TODO: We really should only fail backwards after our revocation claims have been
+                       // confirmed, but we also need to do more other tracking of in-flight pre-confirm
+                       // on-chain claims, so we can do that at the same time.
+                       if let Storage::Local { ref current_remote_commitment_txid, ref prev_remote_commitment_txid, .. } = self.key_storage {
+                               if let &Some(ref txid) = current_remote_commitment_txid {
+                                       if let Some(&(_, ref latest_outpoints)) = self.remote_claimable_outpoints.get(&txid) {
+                                               for &(ref payment_hash, ref source, _) in latest_outpoints.iter() {
+                                                       htlc_updated.push(((*source).clone(), None, payment_hash.clone()));
+                                               }
+                                       }
+                               }
+                               if let &Some(ref txid) = prev_remote_commitment_txid {
+                                       if let Some(&(_, ref prev_outpoint)) = self.remote_claimable_outpoints.get(&txid) {
+                                               for &(ref payment_hash, ref source, _) in prev_outpoint.iter() {
+                                                       htlc_updated.push(((*source).clone(), None, payment_hash.clone()));
+                                               }
+                                       }
+                               }
+                       }
+                       // No need to check local commitment txn, symmetric HTLCSource must be present as per-htlc data on remote commitment tx
                } else if let Some(per_commitment_data) = per_commitment_option {
                        // While this isn't useful yet, there is a potential race where if a counterparty
                        // revokes a state at the same time as the commitment transaction for that state is
@@ -1068,25 +1247,24 @@ impl ChannelMonitor {
                                        } else { None };
                                if let Some(revocation_point) = revocation_point_option {
                                        let (revocation_pubkey, b_htlc_key) = match self.key_storage {
-                                               KeyStorage::PrivMode { ref revocation_base_key, ref htlc_base_key, .. } => {
+                                               Storage::Local { ref revocation_base_key, ref htlc_base_key, .. } => {
                                                        (ignore_error!(chan_utils::derive_public_revocation_key(&self.secp_ctx, revocation_point, &PublicKey::from_secret_key(&self.secp_ctx, &revocation_base_key))),
                                                        ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, revocation_point, &PublicKey::from_secret_key(&self.secp_ctx, &htlc_base_key))))
                                                },
-                                               KeyStorage::SigsMode { ref revocation_base_key, ref htlc_base_key, .. } => {
+                                               Storage::Watchtower { ref revocation_base_key, ref htlc_base_key, .. } => {
                                                        (ignore_error!(chan_utils::derive_public_revocation_key(&self.secp_ctx, revocation_point, &revocation_base_key)),
                                                        ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, revocation_point, &htlc_base_key)))
                                                },
                                        };
                                        let a_htlc_key = match self.their_htlc_base_key {
-                                               None => return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs),
+                                               None => return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated),
                                                Some(their_htlc_base_key) => ignore_error!(chan_utils::derive_public_key(&self.secp_ctx, revocation_point, &their_htlc_base_key)),
                                        };
 
-
                                        for (idx, outp) in tx.output.iter().enumerate() {
                                                if outp.script_pubkey.is_v0_p2wpkh() {
                                                        match self.key_storage {
-                                                               KeyStorage::PrivMode { ref payment_base_key, .. } => {
+                                                               Storage::Local { ref payment_base_key, .. } => {
                                                                        if let Ok(local_key) = chan_utils::derive_private_key(&self.secp_ctx, &revocation_point, &payment_base_key) {
                                                                                spendable_outputs.push(SpendableOutputDescriptor::DynamicOutputP2WPKH {
                                                                                        outpoint: BitcoinOutPoint { txid: commitment_txid, vout: idx as u32 },
@@ -1094,11 +1272,8 @@ impl ChannelMonitor {
                                                                                        output: outp.clone(),
                                                                                });
                                                                        }
-                                                               }
-                                                               KeyStorage::SigsMode { .. } => {
-                                                                       //TODO: we need to ensure an offline client will generate the event when it
-                                                                       // cames back online after only the watchtower saw the transaction
-                                                               }
+                                                               },
+                                                               Storage::Watchtower { .. } => {}
                                                        }
                                                        break; // Only to_remote ouput is claimable
                                                }
@@ -1112,14 +1287,14 @@ impl ChannelMonitor {
                                                ($sighash_parts: expr, $input: expr, $amount: expr, $preimage: expr) => {
                                                        {
                                                                let (sig, redeemscript) = match self.key_storage {
-                                                                       KeyStorage::PrivMode { ref htlc_base_key, .. } => {
-                                                                               let htlc = &per_commitment_option.unwrap()[$input.sequence as usize];
+                                                                       Storage::Local { ref htlc_base_key, .. } => {
+                                                                               let htlc = &per_commitment_option.unwrap().0[$input.sequence as usize];
                                                                                let redeemscript = chan_utils::get_htlc_redeemscript_with_explicit_keys(htlc, &a_htlc_key, &b_htlc_key, &revocation_pubkey);
                                                                                let sighash = ignore_error!(Message::from_slice(&$sighash_parts.sighash_all(&$input, &redeemscript, $amount)[..]));
                                                                                let htlc_key = ignore_error!(chan_utils::derive_private_key(&self.secp_ctx, revocation_point, &htlc_base_key));
                                                                                (self.secp_ctx.sign(&sighash, &htlc_key), redeemscript)
                                                                        },
-                                                                       KeyStorage::SigsMode { .. } => {
+                                                                       Storage::Watchtower { .. } => {
                                                                                unimplemented!();
                                                                        }
                                                                };
@@ -1131,7 +1306,13 @@ impl ChannelMonitor {
                                                }
                                        }
 
-                                       for (idx, htlc) in per_commitment_data.iter().enumerate() {
+                                       for (idx, ref htlc) in per_commitment_data.0.iter().enumerate() {
+                                               let expected_script = chan_utils::get_htlc_redeemscript_with_explicit_keys(&htlc, &a_htlc_key, &b_htlc_key, &revocation_pubkey);
+                                               if htlc.transaction_output_index as usize >= tx.output.len() ||
+                                                               tx.output[htlc.transaction_output_index as usize].value != htlc.amount_msat / 1000 ||
+                                                               tx.output[htlc.transaction_output_index as usize].script_pubkey != expected_script.to_v0_p2wsh() {
+                                                       return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated); // Corrupted per_commitment_data, fuck this user
+                                               }
                                                if let Some(payment_preimage) = self.payment_preimages.get(&htlc.payment_hash) {
                                                        let input = TxIn {
                                                                previous_output: BitcoinOutPoint {
@@ -1157,7 +1338,7 @@ impl ChannelMonitor {
                                                                        }),
                                                                };
                                                                let sighash_parts = bip143::SighashComponents::new(&single_htlc_tx);
-                                                               sign_input!(sighash_parts, single_htlc_tx.input[0], htlc.amount_msat / 1000, payment_preimage.to_vec());
+                                                               sign_input!(sighash_parts, single_htlc_tx.input[0], htlc.amount_msat / 1000, payment_preimage.0.to_vec());
                                                                spendable_outputs.push(SpendableOutputDescriptor::StaticOutput {
                                                                        outpoint: BitcoinOutPoint { txid: single_htlc_tx.txid(), vout: 0 },
                                                                        output: single_htlc_tx.output[0].clone(),
@@ -1165,9 +1346,34 @@ impl ChannelMonitor {
                                                                txn_to_broadcast.push(single_htlc_tx);
                                                        }
                                                }
+                                               if !htlc.offered {
+                                                       // TODO: If the HTLC has already expired, potentially merge it with the
+                                                       // rest of the claim transaction, as above.
+                                                       let input = TxIn {
+                                                               previous_output: BitcoinOutPoint {
+                                                                       txid: commitment_txid,
+                                                                       vout: htlc.transaction_output_index,
+                                                               },
+                                                               script_sig: Script::new(),
+                                                               sequence: idx as u32,
+                                                               witness: Vec::new(),
+                                                       };
+                                                       let mut timeout_tx = Transaction {
+                                                               version: 2,
+                                                               lock_time: htlc.cltv_expiry,
+                                                               input: vec![input],
+                                                               output: vec!(TxOut {
+                                                                       script_pubkey: self.destination_script.clone(),
+                                                                       value: htlc.amount_msat / 1000,
+                                                               }),
+                                                       };
+                                                       let sighash_parts = bip143::SighashComponents::new(&timeout_tx);
+                                                       sign_input!(sighash_parts, timeout_tx.input[0], htlc.amount_msat / 1000, vec![0]);
+                                                       txn_to_broadcast.push(timeout_tx);
+                                               }
                                        }
 
-                                       if inputs.is_empty() { return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs); } // Nothing to be done...probably a false positive/local tx
+                                       if inputs.is_empty() { return (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated); } // Nothing to be done...probably a false positive/local tx
 
                                        let outputs = vec!(TxOut {
                                                script_pubkey: self.destination_script.clone(),
@@ -1185,7 +1391,7 @@ impl ChannelMonitor {
 
                                        for input in spend_tx.input.iter_mut() {
                                                let value = values_drain.next().unwrap();
-                                               sign_input!(sighash_parts, input, value.0, value.1.to_vec());
+                                               sign_input!(sighash_parts, input, value.0, (value.1).0.to_vec());
                                        }
 
                                        spendable_outputs.push(SpendableOutputDescriptor::StaticOutput {
@@ -1197,7 +1403,7 @@ impl ChannelMonitor {
                        }
                }
 
-               (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs)
+               (txn_to_broadcast, (commitment_txid, watch_outputs), spendable_outputs, htlc_updated)
        }
 
        /// Attempst to claim a remote HTLC-Success/HTLC-Timeout s outputs using the revocation key
@@ -1215,14 +1421,14 @@ impl ChannelMonitor {
                        };
                }
 
-               let secret = ignore_error!(self.get_secret(commitment_number));
+               let secret = if let Some(secret) = self.get_secret(commitment_number) { secret } else { return (None, None); };
                let per_commitment_key = ignore_error!(SecretKey::from_slice(&self.secp_ctx, &secret));
                let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &per_commitment_key);
                let revocation_pubkey = match self.key_storage {
-                       KeyStorage::PrivMode { ref revocation_base_key, .. } => {
+                       Storage::Local { ref revocation_base_key, .. } => {
                                ignore_error!(chan_utils::derive_public_revocation_key(&self.secp_ctx, &per_commitment_point, &PublicKey::from_secret_key(&self.secp_ctx, &revocation_base_key)))
                        },
-                       KeyStorage::SigsMode { ref revocation_base_key, .. } => {
+                       Storage::Watchtower { ref revocation_base_key, .. } => {
                                ignore_error!(chan_utils::derive_public_revocation_key(&self.secp_ctx, &per_commitment_point, &revocation_base_key))
                        },
                };
@@ -1266,12 +1472,12 @@ impl ChannelMonitor {
                        let sighash_parts = bip143::SighashComponents::new(&spend_tx);
 
                        let sig = match self.key_storage {
-                               KeyStorage::PrivMode { ref revocation_base_key, .. } => {
+                               Storage::Local { ref revocation_base_key, .. } => {
                                        let sighash = ignore_error!(Message::from_slice(&sighash_parts.sighash_all(&spend_tx.input[0], &redeemscript, amount)[..]));
                                        let revocation_key = ignore_error!(chan_utils::derive_private_revocation_key(&self.secp_ctx, &per_commitment_key, &revocation_base_key));
                                        self.secp_ctx.sign(&sighash, &revocation_key)
                                }
-                               KeyStorage::SigsMode { .. } => {
+                               Storage::Watchtower { .. } => {
                                        unimplemented!();
                                }
                        };
@@ -1286,9 +1492,10 @@ impl ChannelMonitor {
                } else { (None, None) }
        }
 
-       fn broadcast_by_local_state(&self, local_tx: &LocalSignedTx, per_commitment_point: &Option<PublicKey>, delayed_payment_base_key: &Option<SecretKey>) -> (Vec<Transaction>, Vec<SpendableOutputDescriptor>) {
+       fn broadcast_by_local_state(&self, local_tx: &LocalSignedTx, per_commitment_point: &Option<PublicKey>, delayed_payment_base_key: &Option<SecretKey>) -> (Vec<Transaction>, Vec<SpendableOutputDescriptor>, Vec<TxOut>) {
                let mut res = Vec::with_capacity(local_tx.htlc_outputs.len());
                let mut spendable_outputs = Vec::with_capacity(local_tx.htlc_outputs.len());
+               let mut watch_outputs = Vec::with_capacity(local_tx.htlc_outputs.len());
 
                macro_rules! add_dynamic_output {
                        ($father_tx: expr, $vout: expr) => {
@@ -1345,31 +1552,34 @@ impl ChannelMonitor {
                                        htlc_success_tx.input[0].witness.push(our_sig.serialize_der(&self.secp_ctx).to_vec());
                                        htlc_success_tx.input[0].witness[2].push(SigHashType::All as u8);
 
-                                       htlc_success_tx.input[0].witness.push(payment_preimage.to_vec());
+                                       htlc_success_tx.input[0].witness.push(payment_preimage.0.to_vec());
                                        htlc_success_tx.input[0].witness.push(chan_utils::get_htlc_redeemscript_with_explicit_keys(htlc, &local_tx.a_htlc_key, &local_tx.b_htlc_key, &local_tx.revocation_key).into_bytes());
 
                                        add_dynamic_output!(htlc_success_tx, 0);
                                        res.push(htlc_success_tx);
                                }
                        }
+                       watch_outputs.push(local_tx.tx.output[htlc.transaction_output_index as usize].clone());
                }
 
-               (res, spendable_outputs)
+               (res, spendable_outputs, watch_outputs)
        }
 
        /// Attempts to claim any claimable HTLCs in a commitment transaction which was not (yet)
        /// revoked using data in local_claimable_outpoints.
        /// Should not be used if check_spend_revoked_transaction succeeds.
-       fn check_spend_local_transaction(&self, tx: &Transaction, _height: u32) -> (Vec<Transaction>, Vec<SpendableOutputDescriptor>) {
+       fn check_spend_local_transaction(&self, tx: &Transaction, _height: u32) -> (Vec<Transaction>, Vec<SpendableOutputDescriptor>, (Sha256dHash, Vec<TxOut>)) {
                let commitment_txid = tx.txid();
                if let &Some(ref local_tx) = &self.current_local_signed_commitment_tx {
                        if local_tx.txid == commitment_txid {
                                match self.key_storage {
-                                       KeyStorage::PrivMode { ref delayed_payment_base_key, ref latest_per_commitment_point, .. } => {
-                                               return self.broadcast_by_local_state(local_tx, latest_per_commitment_point, &Some(*delayed_payment_base_key));
+                                       Storage::Local { ref delayed_payment_base_key, ref latest_per_commitment_point, .. } => {
+                                               let (local_txn, spendable_outputs, watch_outputs) = self.broadcast_by_local_state(local_tx, latest_per_commitment_point, &Some(*delayed_payment_base_key));
+                                               return (local_txn, spendable_outputs, (commitment_txid, watch_outputs));
                                        },
-                                       KeyStorage::SigsMode { .. } => {
-                                               return self.broadcast_by_local_state(local_tx, &None, &None);
+                                       Storage::Watchtower { .. } => {
+                                               let (local_txn, spendable_outputs, watch_outputs) = self.broadcast_by_local_state(local_tx, &None, &None);
+                                               return (local_txn, spendable_outputs, (commitment_txid, watch_outputs));
                                        }
                                }
                        }
@@ -1377,23 +1587,25 @@ impl ChannelMonitor {
                if let &Some(ref local_tx) = &self.prev_local_signed_commitment_tx {
                        if local_tx.txid == commitment_txid {
                                match self.key_storage {
-                                       KeyStorage::PrivMode { ref delayed_payment_base_key, ref prev_latest_per_commitment_point, .. } => {
-                                               return self.broadcast_by_local_state(local_tx, prev_latest_per_commitment_point, &Some(*delayed_payment_base_key));
+                                       Storage::Local { ref delayed_payment_base_key, ref prev_latest_per_commitment_point, .. } => {
+                                               let (local_txn, spendable_outputs, watch_outputs) = self.broadcast_by_local_state(local_tx, prev_latest_per_commitment_point, &Some(*delayed_payment_base_key));
+                                               return (local_txn, spendable_outputs, (commitment_txid, watch_outputs));
                                        },
-                                       KeyStorage::SigsMode { .. } => {
-                                               return self.broadcast_by_local_state(local_tx, &None, &None);
+                                       Storage::Watchtower { .. } => {
+                                               let (local_txn, spendable_outputs, watch_outputs) = self.broadcast_by_local_state(local_tx, &None, &None);
+                                               return (local_txn, spendable_outputs, (commitment_txid, watch_outputs));
                                        }
                                }
                        }
                }
-               (Vec::new(), Vec::new())
+               (Vec::new(), Vec::new(), (commitment_txid, Vec::new()))
        }
 
        /// Generate a spendable output event when closing_transaction get registered onchain.
        fn check_spend_closing_transaction(&self, tx: &Transaction) -> Option<SpendableOutputDescriptor> {
-               if tx.input[0].sequence == 0xFFFFFFFF && tx.input[0].witness.last().unwrap().len() == 71 {
+               if tx.input[0].sequence == 0xFFFFFFFF && !tx.input[0].witness.is_empty() && tx.input[0].witness.last().unwrap().len() == 71 {
                        match self.key_storage {
-                               KeyStorage::PrivMode { ref shutdown_pubkey, .. } =>  {
+                               Storage::Local { ref shutdown_pubkey, .. } =>  {
                                        let our_channel_close_key_hash = Hash160::from_data(&shutdown_pubkey.serialize());
                                        let shutdown_script = Builder::new().push_opcode(opcodes::All::OP_PUSHBYTES_0).push_slice(&our_channel_close_key_hash[..]).into_script();
                                        for (idx, output) in tx.output.iter().enumerate() {
@@ -1405,7 +1617,7 @@ impl ChannelMonitor {
                                                }
                                        }
                                }
-                               KeyStorage::SigsMode { .. } => {
+                               Storage::Watchtower { .. } => {
                                        //TODO: we need to ensure an offline client will generate the event when it
                                        // cames back online after only the watchtower saw the transaction
                                }
@@ -1420,7 +1632,7 @@ impl ChannelMonitor {
                if let &Some(ref local_tx) = &self.current_local_signed_commitment_tx {
                        let mut res = vec![local_tx.tx.clone()];
                        match self.key_storage {
-                               KeyStorage::PrivMode { ref delayed_payment_base_key, ref prev_latest_per_commitment_point, .. } => {
+                               Storage::Local { ref delayed_payment_base_key, ref prev_latest_per_commitment_point, .. } => {
                                        res.append(&mut self.broadcast_by_local_state(local_tx, prev_latest_per_commitment_point, &Some(*delayed_payment_base_key)).0);
                                },
                                _ => panic!("Can only broadcast by local channelmonitor"),
@@ -1431,9 +1643,10 @@ impl ChannelMonitor {
                }
        }
 
-       fn block_connected(&mut self, txn_matched: &[&Transaction], height: u32, block_hash: &Sha256dHash, broadcaster: &BroadcasterInterface)-> (Vec<(Sha256dHash, Vec<TxOut>)>, Vec<SpendableOutputDescriptor>) {
+       fn block_connected(&mut self, txn_matched: &[&Transaction], height: u32, block_hash: &Sha256dHash, broadcaster: &BroadcasterInterface)-> (Vec<(Sha256dHash, Vec<TxOut>)>, Vec<SpendableOutputDescriptor>, Vec<(HTLCSource, Option<PaymentPreimage>, PaymentHash)>) {
                let mut watch_outputs = Vec::new();
                let mut spendable_outputs = Vec::new();
+               let mut htlc_updated = Vec::new();
                for tx in txn_matched {
                        if tx.input.len() == 1 {
                                // Assuming our keys were not leaked (in which case we're screwed no matter what),
@@ -1442,23 +1655,37 @@ impl ChannelMonitor {
                                // filters.
                                let prevout = &tx.input[0].previous_output;
                                let mut txn: Vec<Transaction> = Vec::new();
-                               if self.funding_txo.is_none() || (prevout.txid == self.funding_txo.as_ref().unwrap().0.txid && prevout.vout == self.funding_txo.as_ref().unwrap().0.index as u32) {
-                                       let (remote_txn, new_outputs, mut spendable_output) = self.check_spend_remote_transaction(tx, height);
+                               let funding_txo = match self.key_storage {
+                                       Storage::Local { ref funding_info, .. } => {
+                                               funding_info.clone()
+                                       }
+                                       Storage::Watchtower { .. } => {
+                                               unimplemented!();
+                                       }
+                               };
+                               if funding_txo.is_none() || (prevout.txid == funding_txo.as_ref().unwrap().0.txid && prevout.vout == funding_txo.as_ref().unwrap().0.index as u32) {
+                                       let (remote_txn, new_outputs, mut spendable_output, mut updated) = self.check_spend_remote_transaction(tx, height);
                                        txn = remote_txn;
                                        spendable_outputs.append(&mut spendable_output);
                                        if !new_outputs.1.is_empty() {
                                                watch_outputs.push(new_outputs);
                                        }
                                        if txn.is_empty() {
-                                               let (remote_txn, mut outputs) = self.check_spend_local_transaction(tx, height);
-                                               spendable_outputs.append(&mut outputs);
-                                               txn = remote_txn;
+                                               let (local_txn, mut spendable_output, new_outputs) = self.check_spend_local_transaction(tx, height);
+                                               spendable_outputs.append(&mut spendable_output);
+                                               txn = local_txn;
+                                               if !new_outputs.1.is_empty() {
+                                                       watch_outputs.push(new_outputs);
+                                               }
                                        }
-                                       if !self.funding_txo.is_none() && txn.is_empty() {
+                                       if !funding_txo.is_none() && txn.is_empty() {
                                                if let Some(spendable_output) = self.check_spend_closing_transaction(tx) {
                                                        spendable_outputs.push(spendable_output);
                                                }
                                        }
+                                       if updated.len() > 0 {
+                                               htlc_updated.append(&mut updated);
+                                       }
                                } else {
                                        if let Some(&(commitment_number, _)) = self.remote_commitment_txn_on_chain.get(&prevout.txid) {
                                                let (tx, spendable_output) = self.check_spend_remote_htlc(tx, commitment_number);
@@ -1473,22 +1700,32 @@ impl ChannelMonitor {
                                for tx in txn.iter() {
                                        broadcaster.broadcast_transaction(tx);
                                }
+                               let mut updated = self.is_resolving_htlc_output(tx);
+                               if updated.len() > 0 {
+                                       htlc_updated.append(&mut updated);
+                               }
                        }
                }
                if let Some(ref cur_local_tx) = self.current_local_signed_commitment_tx {
                        if self.would_broadcast_at_height(height) {
                                broadcaster.broadcast_transaction(&cur_local_tx.tx);
                                match self.key_storage {
-                                       KeyStorage::PrivMode { ref delayed_payment_base_key, ref latest_per_commitment_point, .. } => {
-                                               let (txs, mut outputs) = self.broadcast_by_local_state(&cur_local_tx, latest_per_commitment_point, &Some(*delayed_payment_base_key));
-                                               spendable_outputs.append(&mut outputs);
+                                       Storage::Local { ref delayed_payment_base_key, ref latest_per_commitment_point, .. } => {
+                                               let (txs, mut spendable_output, new_outputs) = self.broadcast_by_local_state(&cur_local_tx, latest_per_commitment_point, &Some(*delayed_payment_base_key));
+                                               spendable_outputs.append(&mut spendable_output);
+                                               if !new_outputs.is_empty() {
+                                                       watch_outputs.push((cur_local_tx.txid.clone(), new_outputs));
+                                               }
                                                for tx in txs {
                                                        broadcaster.broadcast_transaction(&tx);
                                                }
                                        },
-                                       KeyStorage::SigsMode { .. } => {
-                                               let (txs, mut outputs) = self.broadcast_by_local_state(&cur_local_tx, &None, &None);
-                                               spendable_outputs.append(&mut outputs);
+                                       Storage::Watchtower { .. } => {
+                                               let (txs, mut spendable_output, new_outputs) = self.broadcast_by_local_state(&cur_local_tx, &None, &None);
+                                               spendable_outputs.append(&mut spendable_output);
+                                               if !new_outputs.is_empty() {
+                                                       watch_outputs.push((cur_local_tx.txid.clone(), new_outputs));
+                                               }
                                                for tx in txs {
                                                        broadcaster.broadcast_transaction(&tx);
                                                }
@@ -1497,7 +1734,7 @@ impl ChannelMonitor {
                        }
                }
                self.last_block_hash = block_hash.clone();
-               (watch_outputs, spendable_outputs)
+               (watch_outputs, spendable_outputs, htlc_updated)
        }
 
        pub(super) fn would_broadcast_at_height(&self, height: u32) -> bool {
@@ -1531,6 +1768,64 @@ impl ChannelMonitor {
                }
                false
        }
+
+       /// Check if any transaction broadcasted is resolving HTLC output by a success or timeout on a local
+       /// or remote commitment tx, if so send back the source, preimage if found and payment_hash of resolved HTLC
+       fn is_resolving_htlc_output(&mut self, tx: &Transaction) -> Vec<(HTLCSource, Option<PaymentPreimage>, PaymentHash)> {
+               let mut htlc_updated = Vec::new();
+
+               'outer_loop: for input in &tx.input {
+                       let mut payment_data = None;
+
+                       macro_rules! scan_commitment {
+                               ($htlc_outputs: expr, $htlc_sources: expr) => {
+                                       for &(ref payment_hash, ref source, ref vout) in $htlc_sources.iter() {
+                                               if &Some(input.previous_output.vout) == vout {
+                                                       payment_data = Some((source.clone(), *payment_hash));
+                                               }
+                                       }
+                                       if payment_data.is_none() {
+                                               for htlc_output in $htlc_outputs {
+                                                       if input.previous_output.vout == htlc_output.transaction_output_index {
+                                                               log_info!(self, "Inbound HTLC timeout at {} from {} resolved by {}", input.previous_output.vout, input.previous_output.txid, tx.txid());
+                                                               continue 'outer_loop;
+                                                       }
+                                               }
+                                       }
+                               }
+                       }
+
+                       if let Some(ref current_local_signed_commitment_tx) = self.current_local_signed_commitment_tx {
+                               if input.previous_output.txid == current_local_signed_commitment_tx.txid {
+                                       scan_commitment!(current_local_signed_commitment_tx.htlc_outputs.iter().map(|&(ref a, _, _)| a), current_local_signed_commitment_tx.htlc_sources);
+                               }
+                       }
+                       if let Some(ref prev_local_signed_commitment_tx) = self.prev_local_signed_commitment_tx {
+                               if input.previous_output.txid == prev_local_signed_commitment_tx.txid {
+                                       scan_commitment!(prev_local_signed_commitment_tx.htlc_outputs.iter().map(|&(ref a, _, _)| a), prev_local_signed_commitment_tx.htlc_sources);
+                               }
+                       }
+                       if let Some(&(ref htlc_outputs, ref htlc_sources)) = self.remote_claimable_outpoints.get(&input.previous_output.txid) {
+                               scan_commitment!(htlc_outputs, htlc_sources);
+                       }
+
+                       // If tx isn't solving htlc output from local/remote commitment tx and htlc isn't outbound we don't need
+                       // to broadcast solving backward
+                       if let Some((source, payment_hash)) = payment_data {
+                               let mut payment_preimage = PaymentPreimage([0; 32]);
+                               if input.witness.len() == 5 && input.witness[4].len() == ACCEPTED_HTLC_SCRIPT_WEIGHT {
+                                       payment_preimage.0.copy_from_slice(&tx.input[0].witness[3]);
+                                       htlc_updated.push((source, Some(payment_preimage), payment_hash));
+                               } else if input.witness.len() == 3 && input.witness[2].len() == OFFERED_HTLC_SCRIPT_WEIGHT {
+                                       payment_preimage.0.copy_from_slice(&tx.input[0].witness[1]);
+                                       htlc_updated.push((source, Some(payment_preimage), payment_hash));
+                               } else {
+                                       htlc_updated.push((source, None, payment_hash));
+                               }
+                       }
+               }
+               htlc_updated
+       }
 }
 
 const MAX_ALLOC_SIZE: usize = 64*1024;
@@ -1553,13 +1848,6 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                        return Err(DecodeError::UnknownVersion);
                }
 
-               // Technically this can fail and serialize fail a round-trip, but only for serialization of
-               // barely-init'd ChannelMonitors that we can't do anything with.
-               let outpoint = OutPoint {
-                       txid: Readable::read(reader)?,
-                       index: Readable::read(reader)?,
-               };
-               let funding_txo = Some((outpoint, Readable::read(reader)?));
                let commitment_transaction_number_obscure_factor = <U48 as Readable<R>>::read(reader)?.0;
 
                let key_storage = match <u8 as Readable<R>>::read(reader)? {
@@ -1579,7 +1867,24 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                                        1 => Some(Readable::read(reader)?),
                                        _ => return Err(DecodeError::InvalidValue),
                                };
-                               KeyStorage::PrivMode {
+                               // Technically this can fail and serialize fail a round-trip, but only for serialization of
+                               // barely-init'd ChannelMonitors that we can't do anything with.
+                               let outpoint = OutPoint {
+                                       txid: Readable::read(reader)?,
+                                       index: Readable::read(reader)?,
+                               };
+                               let funding_info = Some((outpoint, Readable::read(reader)?));
+                               let current_remote_commitment_txid = match <u8 as Readable<R>>::read(reader)? {
+                                       0 => None,
+                                       1 => Some(Readable::read(reader)?),
+                                       _ => return Err(DecodeError::InvalidValue),
+                               };
+                               let prev_remote_commitment_txid = match <u8 as Readable<R>>::read(reader)? {
+                                       0 => None,
+                                       1 => Some(Readable::read(reader)?),
+                                       _ => return Err(DecodeError::InvalidValue),
+                               };
+                               Storage::Local {
                                        revocation_base_key,
                                        htlc_base_key,
                                        delayed_payment_base_key,
@@ -1587,6 +1892,9 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                                        shutdown_pubkey,
                                        prev_latest_per_commitment_point,
                                        latest_per_commitment_point,
+                                       funding_info,
+                                       current_remote_commitment_txid,
+                                       prev_remote_commitment_txid,
                                }
                        },
                        _ => return Err(DecodeError::InvalidValue),
@@ -1625,7 +1933,7 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                                        let offered: bool = Readable::read(reader)?;
                                        let amount_msat: u64 = Readable::read(reader)?;
                                        let cltv_expiry: u32 = Readable::read(reader)?;
-                                       let payment_hash: [u8; 32] = Readable::read(reader)?;
+                                       let payment_hash: PaymentHash = Readable::read(reader)?;
                                        let transaction_output_index: u32 = Readable::read(reader)?;
 
                                        HTLCOutputInCommitment {
@@ -1635,6 +1943,20 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                        }
                }
 
+               macro_rules! read_htlc_source {
+                       () => {
+                               {
+                                       (Readable::read(reader)?, Readable::read(reader)?,
+                                               match <u8 as Readable<R>>::read(reader)? {
+                                                       0 => None,
+                                                       1 => Some(Readable::read(reader)?),
+                                                       _ => return Err(DecodeError::InvalidValue),
+                                               }
+                                       )
+                               }
+                       }
+               }
+
                let remote_claimable_outpoints_len: u64 = Readable::read(reader)?;
                let mut remote_claimable_outpoints = HashMap::with_capacity(cmp::min(remote_claimable_outpoints_len as usize, MAX_ALLOC_SIZE / 64));
                for _ in 0..remote_claimable_outpoints_len {
@@ -1644,7 +1966,12 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                        for _ in 0..outputs_count {
                                outputs.push(read_htlc_in_commitment!());
                        }
-                       if let Some(_) = remote_claimable_outpoints.insert(txid, outputs) {
+                       let sources_count: u64 = Readable::read(reader)?;
+                       let mut sources = Vec::with_capacity(cmp::min(sources_count as usize, MAX_ALLOC_SIZE / 32));
+                       for _ in 0..sources_count {
+                               sources.push(read_htlc_source!());
+                       }
+                       if let Some(_) = remote_claimable_outpoints.insert(txid, (outputs, sources)) {
                                return Err(DecodeError::InvalidValue);
                        }
                }
@@ -1667,9 +1994,9 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                let remote_hash_commitment_number_len: u64 = Readable::read(reader)?;
                let mut remote_hash_commitment_number = HashMap::with_capacity(cmp::min(remote_hash_commitment_number_len as usize, MAX_ALLOC_SIZE / 32));
                for _ in 0..remote_hash_commitment_number_len {
-                       let txid: [u8; 32] = Readable::read(reader)?;
+                       let payment_hash: PaymentHash = Readable::read(reader)?;
                        let commitment_number = <U48 as Readable<R>>::read(reader)?.0;
-                       if let Some(_) = remote_hash_commitment_number.insert(txid, commitment_number) {
+                       if let Some(_) = remote_hash_commitment_number.insert(payment_hash, commitment_number) {
                                return Err(DecodeError::InvalidValue);
                        }
                }
@@ -1699,12 +2026,20 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                                        let htlc_outputs_len: u64 = Readable::read(reader)?;
                                        let mut htlc_outputs = Vec::with_capacity(cmp::min(htlc_outputs_len as usize, MAX_ALLOC_SIZE / 128));
                                        for _ in 0..htlc_outputs_len {
-                                               htlc_outputs.push((read_htlc_in_commitment!(), Readable::read(reader)?, Readable::read(reader)?));
+                                               let out = read_htlc_in_commitment!();
+                                               let sigs = (Readable::read(reader)?, Readable::read(reader)?);
+                                               htlc_outputs.push((out, sigs.0, sigs.1));
+                                       }
+
+                                       let htlc_sources_len: u64 = Readable::read(reader)?;
+                                       let mut htlc_sources = Vec::with_capacity(cmp::min(htlc_outputs_len as usize, MAX_ALLOC_SIZE / 128));
+                                       for _ in 0..htlc_sources_len {
+                                               htlc_sources.push(read_htlc_source!());
                                        }
 
                                        LocalSignedTx {
                                                txid: tx.txid(),
-                                               tx, revocation_key, a_htlc_key, b_htlc_key, delayed_payment_key, feerate_per_kw, htlc_outputs
+                                               tx, revocation_key, a_htlc_key, b_htlc_key, delayed_payment_key, feerate_per_kw, htlc_outputs, htlc_sources
                                        }
                                }
                        }
@@ -1732,11 +2067,11 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                let mut payment_preimages = HashMap::with_capacity(cmp::min(payment_preimages_len as usize, MAX_ALLOC_SIZE / 32));
                let mut sha = Sha256::new();
                for _ in 0..payment_preimages_len {
-                       let preimage: [u8; 32] = Readable::read(reader)?;
+                       let preimage: PaymentPreimage = Readable::read(reader)?;
                        sha.reset();
-                       sha.input(&preimage);
-                       let mut hash = [0; 32];
-                       sha.result(&mut hash);
+                       sha.input(&preimage.0[..]);
+                       let mut hash = PaymentHash([0; 32]);
+                       sha.result(&mut hash.0[..]);
                        if let Some(_) = payment_preimages.insert(hash, preimage) {
                                return Err(DecodeError::InvalidValue);
                        }
@@ -1746,7 +2081,6 @@ impl<R: ::std::io::Read> ReadableArgs<R, Arc<Logger>> for (Sha256dHash, ChannelM
                let destination_script = Readable::read(reader)?;
 
                Ok((last_block_hash.clone(), ChannelMonitor {
-                       funding_txo,
                        commitment_transaction_number_obscure_factor,
 
                        key_storage,
@@ -1783,6 +2117,7 @@ mod tests {
        use bitcoin::blockdata::transaction::Transaction;
        use crypto::digest::Digest;
        use hex;
+       use ln::channelmanager::{PaymentPreimage, PaymentHash};
        use ln::channelmonitor::ChannelMonitor;
        use ln::chan_utils::{HTLCOutputInCommitment, TxCreationKeys};
        use util::sha2::Sha256;
@@ -1808,7 +2143,7 @@ mod tests {
                                        idx -= 1;
                                }
                                assert_eq!(monitor.get_min_seen_secret(), idx + 1);
-                               assert!(monitor.get_secret(idx).is_err());
+                               assert!(monitor.get_secret(idx).is_none());
                        };
                }
 
@@ -1870,7 +2205,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("c7518c8ae4660ed02894df8976fa1a3659c1a8b4b5bec0c4b872abeba4cb8964").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710654, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710654, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -1896,7 +2231,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("27cddaa5624534cb6cb9d7da077cf2b22ab21e9b506fd4998a51d54502e99116").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710652, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710652, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -1922,7 +2257,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("27cddaa5624534cb6cb9d7da077cf2b22ab21e9b506fd4998a51d54502e99116").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710652, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710652, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -1968,7 +2303,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("05cde6323d949933f7f7b78776bcc1ea6d9b31447732e3802e1f7ac44b650e17").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -2004,7 +2339,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("969660042a28f32d9be17344e09374b379962d03db1574df5a8a5a47e19ce3f2").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710650, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710650, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -2050,7 +2385,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("05cde6323d949933f7f7b78776bcc1ea6d9b31447732e3802e1f7ac44b650e17").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -2096,7 +2431,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("05cde6323d949933f7f7b78776bcc1ea6d9b31447732e3802e1f7ac44b650e17").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
 
@@ -2142,7 +2477,7 @@ mod tests {
 
                        secrets.push([0; 32]);
                        secrets.last_mut().unwrap()[0..32].clone_from_slice(&hex::decode("a7efbc61aac46d34f77778bac22c8a20c6a46ca460addc49009bda875ec88fa4").unwrap());
-                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().err,
+                       assert_eq!(monitor.provide_secret(281474976710648, secrets.last().unwrap().clone()).unwrap_err().0,
                                        "Previous secret did not match new one");
                }
        }
@@ -2153,10 +2488,10 @@ mod tests {
                let logger = Arc::new(TestLogger::new());
                let dummy_sig = Signature::from_der(&secp_ctx, &hex::decode("3045022100fa86fa9a36a8cd6a7bb8f06a541787d51371d067951a9461d5404de6b928782e02201c8b7c334c10aed8976a3a465be9a28abff4cb23acbf00022295b378ce1fa3cd").unwrap()[..]).unwrap();
 
+               let dummy_key = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &[42; 32]).unwrap());
                macro_rules! dummy_keys {
                        () => {
                                {
-                                       let dummy_key = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &[42; 32]).unwrap());
                                        TxCreationKeys {
                                                per_commitment_point: dummy_key.clone(),
                                                revocation_key: dummy_key.clone(),
@@ -2174,12 +2509,12 @@ mod tests {
                {
                        let mut rng  = thread_rng();
                        for _ in 0..20 {
-                               let mut preimage = [0; 32];
-                               rng.fill_bytes(&mut preimage);
+                               let mut preimage = PaymentPreimage([0; 32]);
+                               rng.fill_bytes(&mut preimage.0[..]);
                                let mut sha = Sha256::new();
-                               sha.input(&preimage);
-                               let mut hash = [0; 32];
-                               sha.result(&mut hash);
+                               sha.input(&preimage.0[..]);
+                               let mut hash = PaymentHash([0; 32]);
+                               sha.result(&mut hash.0[..]);
                                preimages.push((preimage, hash));
                        }
                }
@@ -2224,11 +2559,11 @@ mod tests {
                let mut monitor = ChannelMonitor::new(&SecretKey::from_slice(&secp_ctx, &[42; 32]).unwrap(), &SecretKey::from_slice(&secp_ctx, &[43; 32]).unwrap(), &SecretKey::from_slice(&secp_ctx, &[44; 32]).unwrap(), &SecretKey::from_slice(&secp_ctx, &[44; 32]).unwrap(), &PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &[45; 32]).unwrap()), 0, Script::new(), logger.clone());
                monitor.set_their_to_self_delay(10);
 
-               monitor.provide_latest_local_commitment_tx_info(dummy_tx.clone(), dummy_keys!(), 0, preimages_to_local_htlcs!(preimages[0..10]));
-               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[5..15]), 281474976710655);
-               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[15..20]), 281474976710654);
-               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[17..20]), 281474976710653);
-               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[18..20]), 281474976710652);
+               monitor.provide_latest_local_commitment_tx_info(dummy_tx.clone(), dummy_keys!(), 0, preimages_to_local_htlcs!(preimages[0..10]), Vec::new());
+               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[5..15]), Vec::new(), 281474976710655, dummy_key);
+               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[15..20]), Vec::new(), 281474976710654, dummy_key);
+               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[17..20]), Vec::new(), 281474976710653, dummy_key);
+               monitor.provide_latest_remote_commitment_tx_info(&dummy_tx, preimages_slice_to_htlc_outputs!(preimages[18..20]), Vec::new(), 281474976710652, dummy_key);
                for &(ref preimage, ref hash) in preimages.iter() {
                        monitor.provide_payment_preimage(hash, preimage);
                }
@@ -2250,7 +2585,7 @@ mod tests {
 
                // Now update local commitment tx info, pruning only element 18 as we still care about the
                // previous commitment tx's preimages too
-               monitor.provide_latest_local_commitment_tx_info(dummy_tx.clone(), dummy_keys!(), 0, preimages_to_local_htlcs!(preimages[0..5]));
+               monitor.provide_latest_local_commitment_tx_info(dummy_tx.clone(), dummy_keys!(), 0, preimages_to_local_htlcs!(preimages[0..5]), Vec::new());
                secret[0..32].clone_from_slice(&hex::decode("2273e227a5b7449b6e70f1fb4652864038b1cbf9cd7c043a7d6456b7fc275ad8").unwrap());
                monitor.provide_secret(281474976710653, secret.clone()).unwrap();
                assert_eq!(monitor.payment_preimages.len(), 12);
@@ -2258,7 +2593,7 @@ mod tests {
                test_preimages_exist!(&preimages[18..20], monitor);
 
                // But if we do it again, we'll prune 5-10
-               monitor.provide_latest_local_commitment_tx_info(dummy_tx.clone(), dummy_keys!(), 0, preimages_to_local_htlcs!(preimages[0..3]));
+               monitor.provide_latest_local_commitment_tx_info(dummy_tx.clone(), dummy_keys!(), 0, preimages_to_local_htlcs!(preimages[0..3]), Vec::new());
                secret[0..32].clone_from_slice(&hex::decode("27cddaa5624534cb6cb9d7da077cf2b22ab21e9b506fd4998a51d54502e99116").unwrap());
                monitor.provide_secret(281474976710652, secret.clone()).unwrap();
                assert_eq!(monitor.payment_preimages.len(), 5);