New research: Lightning Network is becoming more and more centralized, the more nodes there are, the more centralized it becomes

The configuration of the Lightning Network (LN) is becoming more centralized and forming multiple centers. Here are the findings of an unreviewed research paper that was published on the preprinted website arXiv on February 7.

A group of scholars from Switzerland, France, Italy and Canada wrote this paper. Jian Hong-Lin and Kevin Primicerio performed the analysis, while others, including Blockstream Inc. researcher Christian Decker, participated in designing the study.

Core peripheral model

The team collected 18 months of Lightning Network information from January 18, 2018 to July 13, 2019. The researchers then analyzed this payment network based on Lightning Network nodes and wealth distribution.

They found that the network showed a high Gini coefficient both in terms of node concentration and wealth distribution. It is worth noting that the research results found that this value increases as more nodes are added.

It turns out that the Bitcoin (BTC) distribution on each node in the network is also extremely uneven. For example, when the Gini coefficient is 0.88, it is equivalent to 10% of the nodes holding 80% of BTC.

The purpose of this study is to understand which idealized model best describes this network. Although researchers consider the Undirected Binary Configuration Model (UBCM) to be a good choice, they have found that the network is more centralized than expected. The researchers concluded:

"This shows that BLN (Bitcoin Lightning Network) is becoming an increasingly centralized network and more and more compatible with the core peripheral structure."

C2629A658EF047B882A210655A66E831

An ideal network diagram based on 16-day and 34-day LN data. Blue indicates the central node. Source: Research paper .

This UBCM system does imply a certain degree of centralization, which will lead to the existence of multiple centers. Researchers believe that actual networks seem to rely too much on them, which could make them "targets for so-called split attacks."

D924221D4FE94AC1A126577D03CAD21D

16-day and 34-day actual LN plots. Orange and red indicate the central node. Source: Research paper .

The research paper follows the findings of BitMEX Research, which focused on a higher-than-expected number of "non-cooperative closures".

Lightning Network Progress

Lightning Network currently hosts more than 11,500 nodes with an average node capacity of $ 1,300 and an average channel capacity of just under $ 240. Back in September 2019, the network broke through 10,000 nodes.

Lightning Network also encountered some difficulties in the development process, and there are reports that users face temporary losses when adopting Lightning Network. In addition, a vulnerability was disclosed last September, and some reports have stated that the vulnerability was "exploited under natural conditions."

It is worth noting that the Lightning Network has made tremendous progress in adoption. Last December, the crypto exchange Bitfinex announced the introduction of support for Lightning Network, and users can make instant purchases through Bitrefill.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Tesla plunges 20%, calling it "Bitcoin in the automotive sector"

What can you buy in 2020 to make your pots overflow? What will buy you in 2020 make you lose? The answer can be "...

Blockchain

Perspectives | Why Should You Hold Bitcoin?

Andrew Bailey, the next governor of the Bank of England (BoE), recently joined the opposition to the Bitcoin family, ...

Bitcoin

Solana post-disaster reconstruction this year what doesn't kill me makes me stronger

The Solana community has a strong sense of unity, which has allowed it to remain resilient in the face of significant...

Market

Forbes: Billionaires love BTC want to buy 4.5 million BTCs through encryption brokers

According to foreign media reports, Forbes magazine writer Billy Bambrough said Eleesa Dadiani, the cryptocurrency br...

Blockchain

Bitcoin mining difficulty is reduced by 15.95% again: the drop is the second highest in history. Why is this?

Compilation: Lin Shihao Source: Tweet bitpush.news Bitcoin mining difficulty is an important indicator of competition...

Blockchain

Inflation triggered cryptocurrency fever, and Brazil became the biggest "golden owner" of BTC capital inflows.

The data shows that as the inflation rate of Brazil, the ninth largest economy in the world, continues to rise, more ...