The Talmud asks 'Mai Channukah' {What is Channukah}...
Let us look at this discussion from Talmud Masechet Shabbat Chapter 21b....
http://halakhah.com/shabbath/shabbath_21.html#PARTb
Shabbath 21bit does not require attention, and one may make use of its light. R. Zera said in R. Mattenah's name — others state, R. Zera said in Rab's name—: Regarding the wicks and oils which the Sages said, One must not light therewith on the Sabbath, one may light therewith on Hanukkah, either on weekdays or on the Sabbath. Said R. Jeremiah, What is Rab's reason? He holds, If it goes out, it does not require attention, and one may not make use of its light.1 The Rabbis stated this before Abaye in R. Jeremiah's name, but he did not accept it. [But] when Rabin came,2 the Rabbis stated it before Abaye in R. Johanan's name, whereupon he accepted it.3 Had I, he observed, merited the great fortune,4 I would have learnt this dictum originally. But he learnt it [now]? — The difference is in respect of the studies of one's youth.5
Now, if it goes out, does it not require attention? But the following contradicts it: Its observance is from sunset until there is no wayfarer in6 the street. Does that not mean that if it goes out [within that period] it must be relit? — No: if one has not yet lit, he must light it;7 or, in respect of the statutory period.8
'Until there is no wayfarer in the street.' Until when [is that]? — Rabbah b. Bar Hanah said in R. Johanan's name: Until the Palmyreans have departed.9
Our Rabbis taught: The precept of Hanukkah [demands] one light for a man and his household;10 the zealous [kindle] a light for each member [of the household]; and the extremely zealous, — Beth Shammai maintain: On the first day eight lights are lit and thereafter they are gradually reduced;11 but Beth Hillel say: On the first day one is lit and thereafter they are progressively increased.12 'Ulla said: In the West [Palestine] two amoraim,13 R. Jose b. Abin and R. Jose b. Zebida, differ therein: one maintains, The reason of Beth Shammai is that it shall correspond to the days still to come,14 and that of Beth Hillel is that it shall correspond to the days that are gone; but another maintains: Beth Shammai's reason is that it shall correspond to the bullocks of the Festival;15 whilst Beth Hillel's reason is that we promote in [matters of] sanctity but do not reduce.
Rabbah b. Bar Hana said: There were two old men16 in Sidon:17 one did as Beth Shammai and the other as Beth Hillel: the former gave the reason of his action that it should correspond to the bullocks of the Festival, while the latter stated his reason because we promote in [matters of] sanctity but do not reduce.
Our Rabbis taught: It is incumbent to place the Hanukkah lamp by the door of one's house on the outside;18 if one dwells in an upper chamber, he places it at the window nearest the street. But in times of danger19 it is sufficient to place it on the table. Raba said: Another lamp is required for its light to be used;20 yet if there is a blazing fire it is unnecessary. But in the case of an important person,21 even if there is a blazing fire another lamp is required.
What is [the reason of] Hanukkah? For our Rabbis taught: On the twenty-fifth of Kislew22 [commence] the days of Hanukkah, which are eight on which a lamentation for the dead and fasting are forbidden.23 For when the Greeks entered the Temple, they defiled all the oils therein, and when the Hasmonean dynasty prevailed against and defeated them, they made search and found only one cruse of oil which lay with the seal of the High Priest,24 but which contained sufficient for one day's lighting only; yet a miracle was wrought therein and they lit [the lamp] therewith for eight days. The following year these [days] were appointed a Festival with [the recital of] Hallel25 and thanksgiving.26
We learnt elsewhere: If a spark which flies from the anvil goes forth and causes damage, he [the smith] is liable. If a camel laden with flax passes through a street, and the flax overflows into a shop, catches fire at the shopkeeper's lamp, and sets the building alight, the camel owner is liable; but if the shopkeeper placed the light outside, the shopkeeper is liable.27 R. Judah said: In the case of a Hanukkah lamp he is exempt.28 Rabina said in Rab's name: This proves that the Hanukkah lamp should [in the first instance] be placed within ten.29 For should you think, above ten, let him say to him, 'You ought to have placed it higher than a camel and his rider.' 'Yet perhaps if he is put to too much trouble, he may refrain from the [observance of the] precept'.30
R. Kahana said, R. Nathan b. Minyomi expounded in R. Tanhum's name:
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