Lightning Network Stikes Bitcoin Mainnet
Lightning Network Stikes Bitcoin Mainnet
The most highly anticipated Bitcoin technology upgrade has arrived. Lightning Network transactions have been deployed on Bitcoin's mainnet. While some critics see the Lightning Network as an IOU system that will give control to centralized banking hubs, others are adamant that this will be a major breakthrough allowing for faster, cheaper transactions.
What is the Lightning Network?
The Lightning Network is an additional payment layer implemented on the Bitcoin protocol. This '2nd-layer' aims to support an unlimited number of off-chain Bitcoin transactions at a little to no fee. It uses a series of bi-directional payment channels to accomplish this. Users will open a new multi-signature Bitcoin address and deposit funds. These funds can be sent back and forth (off-chain) to whomever is associated with the multi-signature account. Once all parties are in agreement, the payment channel can be closed and the transaction will settle on the main Bitcoin blockchain.
Bitcoin Smart-Contracts
The Lightning Network layer allows for the implementation of programmable, self-executing smart-contracts on the Bitcoin network. The protocol includes 'Time-Locks' that can be used to set parameters for when funds can be sent. For instance, someone operating a payment channel can set a time, date or block number that must be reached before funds can be utilized.
Who's Behind It?
The Lightning Network was first proposed last year by developers Joseph Poon and Thaddeus Dryja. Currently, there are 3 teams working on Lightning Network implementations with help from community input. Lightning Labs (Ind) , ACINQ (eclair) and Blockstream (c-lightning). A recent test of the Lightning Network proved successful across all 3 implementations on the Bitcoin mainnet.
The Whitepaper - The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments
by Joseph Poon & Thaddeus Dryja
Understanding the Lightning Network
by Aaron van Wirdum via Bitcoin Magazine
Mathematical Proof That the Lightning Network Cannot Be a Decentralized Bitcoin Scaling Solution
by Jonald Fyookball via Medium
"The Importance of Layer Two"
by Elizabeth Stark of Lightning Labs
How will the Lightning Network impact Bitcoin?
What do you think?
Thanks For Reading!
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This technology on top of blockchain is interesting, but i'm a bit sceptical, if you compare it to a hashgraph technology (some say that it a blockchain killer) you will understand that you don't actually need a second layer to get a scalability and performance...
I am still not sold on LN and with this information I am even less supportive of this change. For one thing, the complexity of the network seems like overkill. The visual diagram showing the need for centralized hubs or a central "super hub" to move money as an intermediary is unnerving.
There has to be a better way, but I fear that with all the resources and propagandizing LN creators are implementing on the Blockchain populace, it's a full force normalization so we just take the change and deal with the consequences without really having a say.
I have to agree. I provided the links at the bottom because I wanted to show both sides of the argument. Jonald Fyookballs Medium article brings up a real cause for concern.
I have to say I am skeptical of the whole lightning network idea. It seems anytime someone complains about unreasonable BTC fees that Bitcoin supporters claim lightning network is a godscend and is going to fix everything.
The reality is that no one has a clue if or when it will come and even then how can we know it is going to work. I really hope it works but I remain extremely skeptical. I mean they told me Segwit was going to fix everything and if it did I'm not seeing it.
Think we will get a short term solution ? I see people jumping ship due to the mempool being jammed and it being $50 fees and taking day to confirm.
This seems very interesting. I do like the sound of low fees and smart contracts.
You enjoy having your ears tickled? What about the central hubs? Did you read any of the supporting articles explaining the "bitcoin breaking" changes?
oh i hadn't thought of that
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It will definitely be interesting to follow. I've been waiting with getting bitcoin exactly because of lightning, but it seems that maybe it's against the whole bitcoin idea (no credit, trustless)? Do you happen to know if Litecoin is going to implement it in exactly the same way?