Babbitt Column | Trustworthy Lightning Network: Or Solve the Problem of Expensive and Slow Bitcoin Transfers

Author: Shu Guozhu. This article is an excerpt from "The Third Monetary Form."

Editor's Note: Original title was "Trustable Lightning Network"

The need to freeze Bitcoin in the Lightning Network has led to two problems: high payment costs and slow technological improvements.

It only needs a little improvement to become a trustworthy lightning network, and it can shine.

Trustworthy Lightning Network

Allow the balance of the channel to be overdrawn: When two nodes establish a channel, they can either deposit Bitcoin in advance as before, or they can directly save the other party with an overdraft limit.

In this way, there are three ways to establish a channel between two nodes: two-way credit, single credit, and no credit.

Two-way credit refers to each other giving each other an overdraft limit. Generally, partners that trust each other like Huobi and OK can establish channels in this way. One-way credit refers to A allowing B to overdraft, but B does not allow A to overdraft. It is common between large company nodes and unknown small nodes; no credit means that each other is not allowed to overdraw each other, and the two parties still deposit Bitcoin in advance. This is common among nodes in different countries. Way to build a channel.

It's good

1. Freezing funds in the channel have dropped sharply, and the payment cost has dropped to nearly zero.

2. There is no need to deposit Bitcoin into the channel, there is no risk of losing coins, you can use it first and then iterate quickly, instead of waiting for the technology to be fully mature before using it-the speed of technical iteration is greatly accelerated.

Must do this

Consider a node with only a few thousand users. If you need to freeze Bitcoin, all these interests are distributed to the users, which will lead to high payment costs. This determines the countless nodes with only a few thousand users and hundreds of users. — The payment cost is high, and it is not used by many users.

Only by adopting a trustworthy Lightning Network and reducing the payment cost to zero at one time, can all these nodes with thousands of users and hundreds of users be collected.

Pay attention to the two-way acceptance of currency and payment. If only a few people use the Lightning Network, then the motivation for onlookers to join is very small. Only everyone can use it, and everyone can use it, so that everyone can be quickly involved.

Note: In the escrow mode, the node freezes the customer's funds in the channel, which can only solve the payment problem, and to ensure a good collection ability, these small nodes need to freeze a lot of funds.

Benefits of doing it II

First of all, the Lightning Network inevitably leads to super centers. A few super centers maintain absolute control over the entire network. For example, the more users pay, the lower the cost of sharing. For example, the larger the node, the more the secondary nodes will be prompted to establish channels with them. Nodes with only a few thousand users even directly abandoned the establishment of nodes.

The trustworthy Lightning Network is much more dispersed, with thousands of users and hundreds of users who can set up nodes, and the user experience is the same. For example, the nodes opened by companies in China's Top1000, users can not detect any differences, and the node's operating costs are not. The difference is that such a network is sufficiently decentralized.

Secondly, the depth, breadth, and speed of the radiating crowd are obviously several orders of magnitude higher.

Third, only if enough Sexy can mobilize people's passion, so that many people who have nothing to do with Bitcoin, studded because of seeing investment opportunities, and turned around to inject bitcoin into Bitcoin and promote the development of Bitcoin.

Some people understand that the Lightning Network only needs a few major exchanges to support it. You ask people all over the world whether they agree or disagree. Only if it is scattered enough, and only if the depth and breadth of the radiating crowd is large enough and fast enough, will Sexy be worth the majority of unrelated people to come in.

Next question

After solving the problem of expensive and slow Bitcoin transfers, people's attention will shift to how to deal with the issue of stable currency values.

Note: "Third Currency Form" describes the evolution of Bitcoin and some key breakthroughs.

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