Debunking Conspiracy Theories about Bitcoin: Andreas Antonopoulos currently testing Lightning Network

in bitcoin •  10 days ago

There’s a lot of disinformation out there on how Lightning Network works. I’ve debunked at least one conspiracy theory on how Lightning Network is a banker controlled implementation of bitcoin. This video can be seen below…


source

This video tries to make the case that KYC (Know Your Customer) information will be passed along each of the paths and that LN hubs are like banks. The problem is how do you know if a given address is a payment or recipient address? A bitcoin wallet can have billions of addresses that all belong to the same person. So a dialog would have to pop up asking for this information. At this point, such a popup dialog is currently impossible to implement in the code, not to mention the fact that your information would somehow have to be confirmed as “correct”.

The first successful test of LN has already happened, so very conservatively speaking, I think it will be less than a year before people are actually using it. It will reduce transaction fees as more and more people run lightning nodes on their computers. It works like TOR (The Onion Router web browser) in that nodes pass along information but only know the previous hop and next hop in the route but not the origin or destination unless they start the transaction or are the recipient of the transaction.


(source - Andreas Antonopoulos)

For those who remember Seti@Home, running a LN hub would be something like that. It will greatly decentralize the bitcoin network and enhance privacy. Because these can be run on home computers (apparently by just opening up a channel), it will greatly reduce the use of the blockchain.

This should have a very interesting effect on the mining community. We don’t really need to fear the loss of mining power if eventually LN causes reduction in profits for miners because the difficulty adjustment for the nonce happens every two weeks. LN could have the effect of decentralizing mining as well.


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Transaction fee is really a dilemma we face in this world of cryptocurrency and sadly, it has been increasing lately in which sometimes causes us to postpone transactions but still it ends up higher by the time of the next attempt. Thank you for this information. I do hope that transaction fees will be decreased through this system without the risk of losing it in the network space.

I think that the banks are already big time in this cryptrocurrency thing.

They wouldn't let other "small" people get their shares, without them getting it first.

Thank you clearing up some things, too.

Ok, but what is the INCENTIVE for a person to run a LN node and keep it open? If a person runs a node, does that necessarily mean his transaction will process more quickly than someone NOT a node?

If person A has a LN node open, and sends money to person B who is NOT on LN, will one or both pay a mining fee? And vice versa for person A RECIEVING a payment?

It's good info on the 20-hop method tho, thanx for that.

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From what I heard this is automatic. Your wallet will open a node on LN when it wants to process a transaction. As a programmer, what I would do is set up a dynamic array that is sorted with various values from greatest to least. Then you onion route the hops through the intermediate values of your position to the destination of the payment.

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crypto folk are much better at creating stuff than they are of explaining it, that's for sure!

It seems expensive to run a node, so again, what is the incentive for small members of LN to keep a node open??

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this cat on the video REALLY needs to use a whiteboard, and talk slower, and more deliberately.

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This should explain in more detail why scaling is more of a problem than BCH says it is.

If BCH continues down the same path of increasing block size too much, it will eventually run into the same problems bitcoin core is facing right now. The reality is that Satoshi was very skeptical in the beginning of the success of bitcoin and that was stated in the original writings, so he didn't have to think that far ahead.

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expensive meaning electricity and depreciation cost of your equiptment, being allowed to be used for the network.

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It's my understanding that no equipment is required for LN other than your computer. This isn't a mining operation. It's an off chain software application.

Technology very nice..i like this post..thanks for sharing this post..best of luck..

informative post.and its very valuable..
please go agead

Nice post

Awesome video for us..This is informative and valuable to me..I Waite your next post ..

informative post friend, I love steemit thnx for share this post

how can i improve my money by bitcoin?

may be i reasteam your post

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