Glossary

Onion Messages

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Onion messages are a way to send private and secure messages over the internet. Think of it like sending a letter inside several envelopes. Each envelope hides the message and the previous envelopes, making it hard for anyone to see the original message or know who sent it.

Onion messages work in several stages. First, the message is encrypted multiple times, each layer of encryption is like a new envelope around the original message. Then, the message travels through several computers (also known as nodes). Each node opens one “envelope,” decrypting one layer without knowing the entire message or where it came from. And because each node only knows its immediate sender and receiver, the original message and sender’s identity remain hidden from everyone except the final recipient.

In the Bitcoin Lightning Network, onion messages help keep transactions and communications private from intermediary nodes, protecting user identities and transaction details from being exposed. Only the sender and receiver have full knowledge of the transaction, increasing privacy and security within the network.