README: update README with install notes and diagram

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Olaoluwa Osuntokun 5 years ago
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# Lightning Loop
## Loop Out Swap (off -> on-chain)
```
loop out 500
|
|
v
.-----------------------------.
| Loop CLI |
| ./cmd/loop |
| |
| |
| .-------------------. | .--------------. .---------------.
| | Loop Client (lib) | | | LND node | | Bitcoin node |
| | ./ |<-------------| |-------------------| |
| | | | | | on-chain | |
| | |------------->| | htlc | |
| | | | off-chain | | | |
| '-------------------' | htlc '--------------' '---------------'
'-----------------|-----------' | ^
| | |
| v |
| .--. .--.
| _ -( )- _ _ -( )- _
| .--,( ),--. .--,( ),--.
initiate| _.-( )-._ _.-( )-._
swap | ( LIGHTNING NETWORK ) ( BITCOIN NETWORK )
| '-._( )_.-' '-._( )_.-'
| '__,( ),__' '__,( ),__'
| - ._(__)_. - - ._(__)_. -
| | ^
| | |
v v |
.--------------------. off-chain .--------------. .---------------.
| Loop Server | htlc | LND node | | Bitcoin node |
| |<-------------| | | |
| | | | on-chain | |
| | | | htlc | |
| |--------------| |----------------->| |
| | | | | |
'--------------------' '--------------' '---------------'
```
## Setup
LND and the swaplet are using go modules. Make sure that the `GO111MODULE` env
variable is set to `on`.
In order to execute a swap, LND needs to be rebuilt with sub servers enabled.
### LND
* Checkout branch `master`
- `make install tags="signrpc walletrpc chainrpc"` to build and install lnd
with required sub-servers enabled.
- Make sure there are no macaroons in the lnd dir
`~/.lnd/data/chain/bitcoin/mainnet`. If there are, lnd has been started
before and in that case, it could be that `admin.macaroon` doesn't contain
signer permission. Delete `macaroons.db` and `*.macaroon`.
DO NOT DELETE `wallet.db` !
- Start lnd
### Loopd
- `git clone https://github.com/lightninglabs/loop.git
- `cd loopd/cmd`
- `go install ./...`
## Execute a swap
* Swaps are executed by a client daemon process. Run:
`loopd`
By default `loopd` attempts to connect to an lnd instance running on
`localhost:10009` and reads the macaroon and tls certificate from `~/.lnd`.
This can be altered using command line flags. See `loopd --help`.
`loopd` only listens on localhost and uses an unencrypted and unauthenticated
connection.
* To initiate a swap, run:
`loop uncharge <amt_msat>`
When the swap is initiated successfully, `loopd` will see the process through.
* To query and track the swap status, run `loop` without arguments.
## Resume
When `loopd` is terminated (or killed) for whatever reason, it will pickup
pending swaps after a restart.
Information about pending swaps is stored persistently in the swap database.
Its location is `~/.swaplet/<network>/loopent.db`.
## Multiple simultaneous swaps
It is possible to execute multiple swaps simultaneously.

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