Lightning Network and the future of Bitcoin

in vincentb •  last year 

lightning.jpg

For many people coming into cryptocurrencies in the last few months, it was probably bitcoin's huge growth in 2017 what attracted them in the first place.

However in the last month and a half, we've seen a big pullback (I know, bitcoin has seen bigger and longer price "crashes") fed by rumours of new regulation in South Korea and a posible banning of mining activities in China. But above that, I think that the biggest reason behind this sluggish streak has to do with delayed transactions and growing fees.

This has given fuel to critics of bitcoin about it's scalability limitations and some people are even putting some doubts over the fact that bitcoin is no longer the cryptocurrency envisioned by Satoshi Nakamoto in his original whitepaper.

After all of this, you might think that bitcoin has already peaked and that sooner or later it will concede it's dominance to some other cryptocurrency. But actually, some groups of developers had been working for the last couple of years in a solution.

That solution is called Lightning Network. A network of off-chain payment channels in which it would be posible to make instant transaction with lower fees.

But of course this intended solution has found it's own group of critics, citing that in some cases it would be pretty difficult if not imposible for some transactions to find a route to be completed inside the network or that to trying to solve this isue could lead to centralisation of the whole system.

I'm personally confindent that LN will be an effective solution to solve the biggest issues of scaling bitcoin as a payment form and that once it is fully implemented, it will propel it's use and it's price accordingly.

Please share your thoughts

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I hope that the Bitcoin devs do stop their constant infighting and do come up with a solution to Bitcoin's high transaction fees and slow transaction times woes before it becomes completely obsolete.

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Completely agree, banks are currently outperforming bitcoin in that sense :(

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Hi! Looks like you haven't transferred bitcoin in a while. Hope this helps. https://steemit.com/bitcoin/@vhmcrypto/bitcoin-transaction-fee-and-speed-january-30-2018 :)

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I agree with you. It is very expensive to do a bitcoin transaction. Hopefully Bitcoin cash and Ripple will able to help reduce the cost. More companies will start taking other cryptocurrencies.

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Maybe bitcoin won't be needing lighting network anytime soon? The latests news –

Is Bitcoin is going to crash by 80% more?

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Bitcoin may go down all the way to $5000 to find support, but once the LN and other security features are implemented, there is potential for it to recover rapidly.

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Well now there's something I can get behind, because now the last thing we need is for Bitcoin the flat-out crash. (the complete and utter nightmare/disaster that would be)!! : O

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I heard a rumor that Litecoin will implement LN before Bitcoin. I wonder what the impact will be on Bitcoin if that happens.

I also agree with you transaction fees should come doun to bring more transaction

You got a 10.70% upvote from @mercurybot courtesy of @johanalejo!

If a transaction can't find a lightening route, then it can always go back through the block chain.

Not sure what the issue is.

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That's my best guess too. Just wanted to include some other perspective

I just love the sound of it. "lightning network" It sounds so futuristic.

LN fully implemented = MOON + JUPITER + VENUS + PLUTO + ALFA CENTAURY

I have tried to transfer bitcoin earlier this morning and I was shocked with the result. The transaction fee is much lower and the speed is a little bit faster. I don't if this is the effect of LN or just because of the low volume. Anyways, you can check it here https://steemit.com/bitcoin/@vhmcrypto/bitcoin-transaction-fee-and-speed-january-30-2018 and comment your thoughts! Have a good day!

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As stated in my last post, the LN is only running in the Testnet, the developers recommended to avoid using the Mainnet for LN, which net were you using?

https://steemit.com/bitcoin/@santana33/market-view-29-01-btc-lightning-update-and-tether-scandal-bandwidth-glitch-did-not-allow-me-to-post-yesterday

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You got a 6.96% upvote from @minnowvotes courtesy of @santana33!

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I've checked that and there's definitely an improvement. But the perception is more important than reality in terms of markets behaviour. Maybe if this trend keeps up for a few weeks we'll see how it reflects in bitcoin prices

Thanks for your thoughts. I'm new to bitcoin so will follow you and appreciate your posts

Hi @johanalejo saw your post on the Vincentb Tag and gave it a like!

I hope the lightning network will reduce network congestion. However, the whole "Off-Chain" thing might put some people off.

I just posted so if you wanted to like mine as well I would appreciate that. Anyways have a wonderful day

  ·  last year (edited)

Am also very confident about the LN and and btc. I know with time all this FUD surrounding bitcoin would die down. check out $ltc too you'd be glad you did if your not already hodling some

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oh i believe in LTC and ETH. Bitcoin is being manipulated more than we know.

Good thoughts man. You're kicking ass! I wonder if bots are really worth it, but I think you prove that they are.you certainly didn't buy 196 bots...so they are clearly helping you attract extra attention since you've only just started these last few months. So because of your efforts,I believe in this platform more and want to put more into it. Thanks a lot. Keep it up!

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Indeed bots are a good investment as they bring much more atention to your posts. I try to put an extra effort in writing about something really interesting every day or at least in something with enough potential to open up some debate. Love this platform too

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Hi Johan, could you point me out to those bots? Also check my channel about cryptos mainly, I also touched the Lightning network issue.

https://steemit.com/bitcoin/@santana33/market-view-29-01-btc-lightning-update-and-tether-scandal-bandwidth-glitch-did-not-allow-me-to-post-yesterday

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I use the same tool, but I see you use all of them, thanks.

even with LN, why bitcoin? why can't steem or litecoin or eth be that store of value? why do we need a 10 year old technology? nostalgia?

Once the lightning network comes, I believe bitcoin will be widely used and it may reduce the demand of several other coins as well.

Nice article, I agree that LN will/could solve the problems of BTC, if the people involved could get it going sooner than later however that would be nice, and confirm BTC dominance in the market once again.

Ride the Lighting \m/

The "Civil War" with devs and Bitcoin is a two fold problem:
1- It brings attention to Bitcoin, keeping it in the news
2- the attention is negative and brings to light the fighting in house has gone on a long time

Instead of bickering and fighting, maybe they need to put together their own thoughts and see if a general solution to the problems that have plagued BTC could arrise. Yes, I know that thought has been in play for some time too, but it seems at a stalemate. Move forward, strive to take BTC to the next level and NOT down a level....or two

I think if bitcoin does add the lighting network and it works smoothly then it will stay on top as number one for the next two years at least because when new people join crypto they join because of bitcoin and because its easy to buy i can buy it right down the street at a atm you cant but ripple down the street and its a little hard to use the exchanges for a new comer, thanks for the information i followed you and up voted it

So what i think is that the whole China speculation regulation in South Korea coupled with the high fees are responsible for the pull back.
Even I have not used Bitcoin in a while because of the fees. I prefer to use Ethereum and certainly Litecoin.

It would be fine if this Lightening Network can solve the issue.
If bitcoin continues to pull back and even "crash" it may affect other alt coins in a negative way.-And this we never want to happen.

For now we can only hope ETH and LTC will continue to achieve the aims of Satoshi Nakamoto and give us fast transactions with low fees.

Hi, @johanalejo it seems correct to me, I'm also new in the bitcoins market, due to which I'm bearing loss at present. So that I'm just waiting for the right level to withdraw my money !!

I really don't know how long more do I need to wait for ?

Anyway thank you so much !!

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Don't withdraw. Invest in some coin that gives more BTC

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cool, thanks

I really like to read your amazing article about bitcoin @ jhoni will always follow you

Hi, Johan :) I read your articles and because of this I invite you to contribute to Open Source University project — the World’s First Academic and Career Development Ledger. If you are interested in joining our team of content creators please contact me at: [email protected]

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If I had let my Bitcoin grow instead of withdrawing everytime it doubled my measly money in there I would probably have more of it than I withdrew last year. Oh well... Lesson learned.

Anyway this is an interesting thing. I agree that BTC fees should be something they should look into lowering but hopefully it will be sustainable or something.

Lightning Network is ok! But where is Smart-contracts?
Whithout SC - bitcoin dead.

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There are some start ups out there working on that. I think 2018 is going to be a very exciting year for bitcoin

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  ·  last year (edited)

check Rootstock bitcoin

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You know I'm glad that you brought this topic to the Forefront. I will admit I've been worried as well as some people I know and friends of mine. About the Bitcoin declining price,I was under the impression that there were some areas in Asia that may have had somewhat influence on the decline and price. And another thing that I would have to say has to do with people losing confidence in it is its low transaction time and ridiculous fees, (especially on sites like coinbase Etc),I'm hoping it can shoot back up to his previous highs love your major Improvement but I'm sure we can all get behind and all hope for.

I definitely second everything you're saying for the most part and still have a little Hope and Faith that hopefully things will turn around. and I definitely think this new LightningNetwork system will have a huge impact in the cryptocurrency space and hopefully bring back some positive reviews and feedback for the number one crypto-currency!

As you mentioned the big 2 challenges will be to handle the routing problem and also to minimalize the costs of opening and closing a payment channel

i am still new to this crypto world it seems hard to find a stable one as they go up and down..something you have to invest andd just leave it..new to steem world cluld use some love..anyone interested in some licensed replica airsoft gun fights i record gameplay and try to educate people on thks fun sport..anyways good article

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so cool to see you here jerry! Love ya heaps!

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How adaptable is LN? Does it look to adopt all currencies equally or is it designed for bitcoin?

Centralization is bad (except for a few), but LN has got to be an improvement over the system we have now. I share your view that the full implementation of LN will be much more than the picture critics paint.