I think that any coin that activates Segwit and the Lightning Network may also be a competitor to this project.
One of the benefits of the Lighning Network:
"Securely cross blockchains: payments can be routed across more than one blockchain (including altcoins and sidechains) as long as all the chains support the same hash function to use for the hash lock, as well as the ability the ability to create time locks."
It's not impossible that a lightning network may support a competitor, but (a) I doubt it, and (b) even if so, then not for some time. Here's why I think this:
Lightning networks are vulnerable to collusion attacks. (Thanks to Dave Zimbeck for noting this.)
Lightning network does 2 of 2 accounts. Then it creates Pune Dryja channels in an asymetric way to make a HTLC to connect two unrelated 2 of 2 accounts.
So if Bob and Alice are in the 2 of 2
Alice is also in a 2 of 2 with Steve
If Steve owes money to Bob he create a HTLC with him so Bob may withdraw at any time. But if Alice is actually Steven she holds both keys and can withdraw effectively defaulting
If Alice is the one routing all payments owed to Bob it works fine. But Alice needs the physical funds in her account.
So using her as the intermediary between the two... it routes payments like such: Steve owes Bob he routes HTLC to Alice who routes it to Bob
If Alice doesn't have the phyiscal funds in the 2 of 2 it won't work.
Therefore the proper architecture of a Lightning network is for EVERYONE to hold money with an extremely rich Bitcoin holder like a bank or winklevoss twins. Because they are the ones who can successfully route all of those payments P2P without clearing them
From
https://www.reddit.com/user/dzimbeckSo, currently, the only workable decentralised exchange solution is the use of atomic swaps that exploit OP_CHECKLOCKTIMEVERIFY, plus other techniques for decentralising order broadcast and order matching.
Just dropped by the thread to say "hi" and and noticed the reference. Thanks
Yeah the lightning network has some pretty serious security holes to work through before going mainstream or it becomes nothing more than a glorified multisig exchange.
Not to say that off-chain transactions aren't cool, but the only way to solve the problem is to have everyone get accounts with the ultra-wealthy.
Perhaps still a lot of transactions would have to be cleared and also, there is the problem that you need your computer to be running to broadcast transactions that clear before the locks expire (there is some game theory involved because so many transactions get replaced).
Lightning networks might work a little better with a frozen asset class where users would hold more funds which in theory which can be used as collateral when routing IOUS but I definitely do not see Bitcoin doing something like that. And it would still require accounts with wealthy holders.
Also wouldn't a lightning network require a lightning network in EACH coin? Since they are technically doing exchange as micropayment channels, correct me if I'm wrong but all of the coins would need their own network. So I can't imagine how anything like that could be engineered. Also the amount of signatures for the micropayment trade would actually be a bit processor intense because they would have to keep discarding old transactions.
I honestly think the way Blocknet is doing it is the only way to truly do decentralized exchange. And I'm very happy they are going to deliver on this. Shocking nobody else was working on it after all these years.
Kudos!
