Bitcoin Forum
September 26, 2020, 07:41:34 AM *
News: Latest Bitcoin Core release: 0.20.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Scalable Funding of Bitcoin Micropayment Channel Networks  (Read 77 times)
spartacusrex
Hero Member
*****
Offline Offline

Activity: 716
Merit: 533



View Profile
January 24, 2018, 04:53:50 PM
Merited by hatshepsut93 (1)
 #1

(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 Smiley

Life is Code.
1601106094
Hero Member
*
Offline Offline

Posts: 1601106094

View Profile Personal Message (Offline)

Ignore
1601106094
Reply with quote  #2

1601106094
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1601106094
Hero Member
*
Offline Offline

Posts: 1601106094

View Profile Personal Message (Offline)

Ignore
1601106094
Reply with quote  #2

1601106094
Report to moderator
1601106094
Hero Member
*
Offline Offline

Posts: 1601106094

View Profile Personal Message (Offline)

Ignore
1601106094
Reply with quote  #2

1601106094
Report to moderator
Carlton Banks
Legendary
*
Offline Offline

Activity: 2856
Merit: 2282



View Profile
January 24, 2018, 05:02:42 PM
 #2

Should be called "Lightning Grease" Cheesy

Vires in numeris
spartacusrex
Hero Member
*****
Offline Offline

Activity: 716
Merit: 533



View Profile
January 24, 2018, 05:07:50 PM
 #3

Should be called "Lightning Grease" Cheesy

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.

Life is Code.
Anti-Cen
Member
**
Offline Offline

Activity: 210
Merit: 26

High fees = low BTC price


View Profile
January 24, 2018, 11:06:21 PM
 #4

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


Mining is CPU-wars and Intel, AMD like it nearly as much as big oil likes miners wasting electricity. Is this what mankind has come too.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!