PegaSys Hub

The PegaSys Hub is the term used to describe the singleton lightning node that is controlled by the network’s Schnorr[4] key. Each PegaSys node holds a shard of the network key, and all (Bitcoin and Lightning) transactions done by the system must go through a threshold signature scheme[5] (TSS). The signature threshold is set to 2f + 1, where f is the number of failures the system can tolerate, to ensure a majority honest approval for every transaction. Once enough nodes have verified and signed the transaction, a single node broadcasts the transaction to the intended recipient. Once signed, each transaction also needs to be added to PegaSys’s internal ledger for the bookkeeping of user funds.