Why The Lightning Network Doesn't Scale
Watch this guy's other videos too.
This is something I have always known given my background is comp sci + big data + information systems. When you have a system that is in constant flux, and channels are opening and closing all the time, and they have different fees, the amount of hops your route will have to take will be an insane amount. The system gets bogged down with too many users because each users actions have to be communicated across the entire network in real time. What happens when too many connections try to connect to one connection, we know that as being DOSed or DDOSed. What will happen when too many users try to communicate with each other at the same time, similar thing, the routing fails and the payment you try to make fails(see youtube videos of what happens when your LN payment fails).
He summarizes it great and even uses their own devs thoughts on it.
Lightning network and blockstream's Liquid project are nothing more than a cheap and easily seen through ploy for them to make money. They sell their technology and also collect fees by running their hubs in it. They will keep Bitcoin 1 MB for awhile, in order to drive people to their sidechain projects.
Did you know that 1 MB every 10 minutes = 13.33 kbps? Did you know dial-up speed is 56 kbps?
Do you think it is logical to develop a complicated system built on something that is 1/4 the speed of Dialup? If so why?
In a world where we think nothing of our 4G phones downloading at speeds of 10,000kpbs why would we want to use an outdated and old technology? What is the future of something that is so held back that it cannot outperform dialup in terms of speed?
Just a few questions to ask your self if you haven't thought about this or have never been presented with this information.
It is why I have 0 Bitcoin when I used to have like 10. Bitcoin has no DISCERNIBLE future, meaning that the projects out there and everything going on show me nothing is happening to this project.
I am however open to more information if you think there is something I am missing. By all means leave me a nice and informative comment. Thanks.
great videos. opened my eyes to more research. so basically btc core is keeping the limit @ 1MB for profit. there is too much fud about blocksize, bitcoin, bch, etc. think I'll just stick to good old graphene.
so then you are saying you feel Bitcoin will zero out?
It can still be useful and used widly. Though people may have to pay a few bucks in fees or use a sidechain.
It certainly can scale with increasing block size though, if they raise blocksize I will have a more positive outlook on them.
The main issue I see is that stablecoins are going to be used for paying people instead of btc/eth/ltc/dash/xrp. Stablecoins always stay within 98 cent to $1.02 so for business adoption it is safer and less risky to just accept DAI for example.
Btc also has no smart contracts, they need larger blocksize to enable and alllow that + they are 3 years behind ethereum if they started today on it.
Most regular people dont want to be paid in unstable crypto, so stabecoins will become what the masses use. So I dont see how useful btc will be in 10 years. Pretty much it is outdated in every metric you can use to measure it.
Is there a stablecoin poised to take the lead? SBD? hehe
DAI will. Tether will become an artifact that exchanges will get rid of eventually because it isn't provable it is backed by anything. With DAI it is all backed up with smart contracts where people lock up their ETH into WETH(wrapped ETH) and then the wrapped ETH has more advanced smart contracts available to it than regular ETH, WETH can then be locked into Pooled ETH(PETH) which is then how DAI is created and stablized, by having it backed up at a 1 to 1 ratio. The system liquidates your locked PETH if the price goes down too low in order to stablize the price of DAI. And there are many whales who also buy in when it gets to 98 Cents in order to sell a bunch of DAIfor 99 cents or 1.02 USD(which about how high it goes). So it has been pretty stable and working correctly, right now there is onnly about 37,000,000 DAIout vs like 3 billion tether.
DAI is coming out with multi-collateral DAI soon, which will allow a lot of other cryptos to be put into a locked contract backing up the DAI. Right now only ETH - > WETH -> PETH can be used, soon they are backing it up with Gold on the blockchain(DigixDAO). The great thing about having collateral backed up by Tokenized gold(DGX) is that it is physically backed up, for every DGX token that is minted they buy 1 gram of gold and store it and it is provable.. So when you have gold backing up the price of DAI it will be more stable + you will eventually have bitcoin/litecoin and many other coins that you can put into collateral.
I think it makes way more sense for people to transact with stablecoins for business purposes. Of course Iwould like to be paid in non-stable coins because Ibelieve everything will go up, but businesses may not want to risk that, especially when all this crap is crashing all the time hehe.
Cool, thanks for the explanation.
sure but so is a musket, yet there are markets for them.
of course I understand there isn't the exact same carryover I think the overall takeaway is when enough people are exposed to something chances are some of them will find value in things no one expected lol
have you looked into VeChain at all?