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Title: Scalable Funding of Bitcoin Micropayment Channel Networks Post by: spartacusrex on January 24, 2018, 04:53:50 PM (searched but saw no mention of this paper.. I must have missed the original if it was mentioned)
https://bitcoinmagazine.com/articles/new-scaling-layer-could-make-payment-channels-ten-times-more-effective/ Wow.. They've only gone and bloody fixed it. A Lightning Network.. for the Lightning Network. Basically it's a Layer inbetween the mainnet and Lightning that is used to create and rebalance funding channels (ALL OFF CHAIN!). So that 90% of txns that create payment channels no longer need to be created on the mainnet (96% if we have Schnorr Sigs). That can be done in this middle layer. It's.. Awesome. The one big gripe people have about Lightning is the fact you have to create a lot of payment channels on-chain (and ergo pay the BIG fees), but with this, you don't have to. You just have to be a part of one of the groups that is in this middle layer. Then you can create channels to anyone in any of the connected large groups, completely off-chain. And they can all be rebalanced. Boom :) Title: Re: Scalable Funding of Bitcoin Micropayment Channel Networks Post by: Carlton Banks on January 24, 2018, 05:02:42 PM Should be called "Lightning Grease" :D
Title: Re: Scalable Funding of Bitcoin Micropayment Channel Networks Post by: spartacusrex on January 24, 2018, 05:07:50 PM Should be called "Lightning Grease" :D lol.. Exactly! What I find quite astounding is the pace at which these problems of old are being fixed. They're being knocked down at, dare I say it, Lightning speed. I'm losing the, admittedly small, ability to think there will be an issue that Bitcoin can't fix on it's path to global dominance. Title: Re: Scalable Funding of Bitcoin Micropayment Channel Networks Post by: Anti-Cen on January 24, 2018, 11:06:21 PM What I find quite astounding is the pace at which these problems of old are being fixed. They're being knocked down at, dare I say it, Lightning speed. I'm losing the, admittedly small, ability to think there will be an issue that Bitcoin can't fix on it's path to global dominance. Well Lightning is a system of banks which they are trying to keep quite about and they have been working on it for about two years and estimates say it is still 6-8 months away and then more time waiting for wallets to be developed Quote "Payment channels let users lock up a fixed amount of funds in a multisignature wallet controlled by the client and receiver. A channel can be opened by sending a transaction to the blockchain. Next, an unlimited amount of payments can be made between the client and receiver. These payments are performed off-chain and only exist between both participants." They "lock up a fixed amount of funds in a multisignature wallet" is only half the story and balances are kept in the private ledger and the total will always remain the same as when the channel was created so it becomes a buffer as such and the killer as I understand it is that money can move backwards and forwards in the ledger but you cannot move money from one ledger to another one Here is the white-paper Lightning https://lightning.network/lightning-network-paper.pdf it's not like liquid money moved across the route and is more like snooker balls that knock into each other but if inter bank buffers are low in one direction then they might offer to pay a negative fee (Interest) to fill it back up but at other times they are charging fees for effectively lending you your own money Quote The time-value of fees pays for consuming time (e.g. 3 days) and is conceptually equivalent to a gold lease rate without custodial risk; it is the time-value for using up the access to money for a very short duration. Since certain paths may become very profitable in one direction, it is possible for fees to be negative to encourage the channel to be available for those profitable paths. Miners have the hardware, network and BTC to run banking hubs, you and me don't |