Created overview over the different layers.

Layers.md

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+#Layers
+
+For sufficient abstraction and separation, we look at the different network layers independently.
+
+##Low-Level 
+
+### Frame Decoding
+
+We prepend each message with 4 bytes representing the length of the frame. This is due to TCP fragmentation. We remove these 4 bytes and give the full message - once received - to the next layer.
+
+### Encryption
+
+The bytestream of the complete message is encrypted using AES-128-CTR. This layer will give a decrypted byte array to the next layer.
+
+### Message Serialization
+
+There are different techniques currently in use to convert the byte array to an actual message object. These vary in efficiency (Protobufs) and readability(JSON) useful for debugging. 
+
+##Mid-Level
+
+### Authentication
+
+Both nodes authenticate with their public node key to the other node by signing some message with the private key.
+
+### Syncronisation
+
+New nodes want to download the whole dataset from the network. 
+
+### Gossip
+
+Nodes will broadcast various data using the P2P network. 
+
+##High-Level
+
+### Lightning Channel Establishment
+
+For interacting on the Bitcoin Lightning Network channels will have to have payment channels with each other. 
+
+### Channel Negotiation
+
+Making payments, settling payments, working out the current state and balances of the channel, closing the channel again.
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