Lightning network explosive growth, bitcoin will enter the 2 era
Home Cryptocurrency News Lightning network explosive growth, bitcoin will enter the 2 era
Cryptocurrency News - February 17, 2019

Lightning network explosive growth, bitcoin will enter the 2 era

Lightning network is growing at an alarming rate.

2018 year 12 month 7 day, Bitcoinist reported that the number of lightning network nodes break 4000, channel number exceeded 1.65 million, the network capacity from 122 BTC growth in 2018 11 to 460 BTC at the beginning of the month, a month growth of nearly 4 times.

In January 7th, CCN reported that the number of lightning network nodes more than 5150 channels, the number of more than 18 thousand and 500, the network capacity of more than 557 BTC.Because of the lightning network, bitcoin transaction costs fell to the lowest level in 3 years.

In February 10th 1ML, the latest statistics show that the number of lightning network nodes is 6088, representing an increase of 14.61% last month; the channel number 24 thousand and 660, representing an increase of 27.3% last month; the network capacity reached 657 BTC, increased 15% from the previous month.

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Bitcoin analyst JP Thor in the network test results of 2 month showed that lightning speed has online payment payment and other traditional ApplePay type digital platform is not much difference between the center.

In February 12th, Twitter CEO Jack Dorsey confirmed that the lightning network will be applied to Twitter’s mobile payment company Square also by him as the CEO.In the discussion of lightning network podcast, Dorsey said: “in all encryption currency, bitcoin is most likely to become a currency, bitcoin is the Internet” local “money first.”

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Lightning network payment to Liaoyuanzhishi hit, so the lightning network culture.A “social experiment” lightning torch is underway, it is a network with lightning relay payment movement, each new torch holders need to add a Satoshi to the original amount (1satoshi = 0.00000001 BTC), and select the next relay the torch hand out.”Torch” lightning current (February 16th) has passed 199 times, across 38 countries, and even been in space.

“Lightning” torch sponsor Hodlonaut told Bitcoin in an interview with Magazine, the origin of this activity because he was in the first run of lightning network feel excited, so I want to share this with others in the community in the mood, “lightning network trade makes me feel excited and I was like the first time that bitcoin.”Hodlonaut said.

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The lightning the global torch relay map

More than Hodlonaut, a firm of bitcoin holders are excited.Lightning network activation of bitcoin payment functions, bitcoin will be from the “digital gold” 1.0 era officially entered the “currency of payment” of the 2.0 era.

What is the network lightning

The state of lightning belongs to a Layer 2 network expansion program of this class.Nervos Network Ryan told the state channel description is the existing data in the most clear and accurate, so the direct quote as follows:

Layer 2 is a lot of work on the program chain (OffChain), only the most important content of the submitted Layer 1 chain (OnChain) for verification, and Layer 1 Layer 2 to ensure safety.

State channel is a kind of 2 Scheme in Layer.The essence of state channel is a smart contract mechanism: intelligent block chain contract like a robot, the application in the channel, the results will be submitted to the hands of the robot it will be carried out in accordance with the rules of settlement.

Run the application in the state of the channel, will have the following steps:

1) the parties involved in the deployment of intelligent channel state contracts in the block chain, the contract contains a signature contract (only in the case of Party signature unlock), and deposit a certain amount of money, as part of the initial state, as a part of the mortgage assets to prevent evil, open channel.After all actions will be executed until the channel in closed chain.

2) applications will run on all client locally, each run a step, the two sides to build and sign in the local transaction, via peer-to-peer networks or simple gossip protocol will be sent to other parties involved in the transaction and the parties signed the formation of a new state.New status updates include: the latest status of the parties (usually state Hash), and the status of the parties signature version number.At the same time the parties save in the operation process of every state and the signature.

3) application end, a party to submit the final state to smart contracts on the chain block, and there was a period of controversy period.The parties believe that there is no problem, the dispute after a period of state confirmed that the state channel is closed and according to the final state assets in block chain settlement.

Originally in the block in the chain to make sure “every step” is only need to confirm the “result”.

Note that the state of the channel and none of the third party operation node, to accept the deal, a package to provide services.The application in the local execution status updates via peer-to-peer network communication, without consensus mechanism, very efficient.

So the channel state there will be a lot of advantages:

1. is the first instant of uncertainty, as long as the parties signed by the state update state is “confirmed”, without the need for such as block chain blocks waiting for confirmation;

2. secondly, status updates in the chain, point to point communication to ensure privacy, only the final state will be submitted to the block chain;

3. at the low fees, channel status is transactional, only in the channel to open and close when the need to block chain settlement and clearing fees, and other times, no matter how the update in the channel is free.

Lightning network payment channel state in the channel, it is digital, participants can achieve one of the direct trading network.Even if both parties have no direct channel, can also set up channels through multiple nodes.

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Lightning network with high scalability, per second can accommodate millions to billions of transactions; it also has real-time transaction, the transaction time in milliseconds; at the same time, the transaction cost is very low, enough to support micro payment application scenarios.In addition, the network also supports lightning cross chain atomic transactions, once achieved, will also become a revolutionary step encryption currency field.

The lightning network, means that bitcoin may really become a widely used payment currency (given the huge advantage compared to digital payment), which is not only a distance “lying” in the trading platform or in a digital wallet.And bitcoin related transactions, nor with BTC as the unit of measurement, but satoshi.

20190217110744 60558 - Lightning network explosive growth, bitcoin will enter the 2 era

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The history of the development of lightning network

“The first bitcoin payment channel system concept” can be traced back to Nakamoto released, which contains a can let users in the transaction was confirmed before updating the transaction code.

Nakamoto So interpretation of the payment channel is “not recorded open trading can be maintained and replaced, until nLockTime is reached.It may contain multiple payment, each input owner are required to sign input.”

But from “pay” concept to the lightning channel network engineering, has experienced a long time, developers are constantly developing and perfecting the concept of “two-way payment channel” and “chain” and so on the concept of payment networks have been proposed, the final time to 2015, lightning network white paper released prior to it, the basis of these studies, the payment channel network to trust the way.

In this paper, the release of the white paper as a starting point, after the development of the network in this sort of lightning.

2 2015, Thaddeus Dryja and Joseph Poon submitted an article entitled “bitcoin lightning network: scalable off-chain instant payment” white paper, the white paper also known as lightning network white paper, it lays a theoretical foundation for lightning network.

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In May 2015, Linux kernel developer RustyRussell implements a lightning network with the C language, called C-Lightning.This is the first time to realize network lightning.

At the end of 2015, a report on the problem of the expansion of the bitcoin system solution to obtain a consensus in the developer community, and become a roadmap for Bitcoin Core, including the deployment of lightning network.The lightning network was officially incorporated into the bitcoin system.

In 2016, a team began the development of lightning network.This includes lightning white paper author Dryja and network Poon, who founded Lightning Labs, realized by Go language network lightning.

At the end of 2016, the first “summit” held a lightning, lightning network developers discussed how to make all the different lightning network to achieve interoperability, therefore, a BOLT lightning network protocol specification was born, it is now the real development of basic network lightning.

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The Blockstream Christian Decker network in the lightning test network from Russell. “Bought” a photo of a cat

2017 12, the first line of the main lightning network test version, developer Alex Bosworth by establishing a lightning channel and Bitrefill to pay their phone bills, this is the first deal of lightning on the network.

In March 2018, Lightning Labs announced the lightning network officially launched bitcoin network.Subsequently, including the wallet, all kinds of lightning network infrastructure to speed up the development of the imagination.

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Long for bitcoin to buy pizza event known Lazlo Hanyecz to buy two pieces of pizza by lightning network

At the end of 2018 years, it ushered in a lightning network node number and the volume of transactions “outbreak”; the beginning of the 2019 year, bitcoin trading volume record system and business platform of electronic payment and many have a large share of the market continue to support lightning network payment.

At present, most of the development work of lightning network consists of three teams to complete, they are Blockstream (C Edition), LightningLabs (Go), ACINQ (Scala version).The lightning network support interoperability completely different, i.e. different systems can be seamlessly.

2019, lightning network development work will focus mainly in the following aspects:

(1) to improve safety;

(2) the maximum liquidity;

(3) to improve privacy;

(4) to optimize the user experience.

The network brings the change of lightning

Shomei Capital founder Arjun Balaji in 2019 to forecast the development of the industry chain block, lightning network occupy an important position.

Arjun believes that the number of nodes of the network will be lightning from the current about 2100 (he predicted the data) increased to more than 10000, trading volume from 200 million dollars to more than $2500 million, at least one of the main exchange network will deploy lightning.

This is a reflection of the lightning network bitcoin transaction support.In addition the lightning network will also play a role in an important field, namely the application of lightning network based on LApp.

Arjun also put forward the direction in the forecast, he believes that in 2018 there are a large number of network products carried out around the lightning experiment in 2019, based on bitcoin to build product development experience will be improved significantly, he is looking forward to the prospect of new products.

A large number of LApp has been developed and deployed, including the application of financial and advertising fields, including games and media etc.More LApp is still on the way.

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The LApp version of the game has been on the line of pixels

The advantage of LApp includes a strong consensus around bitcoin, but also has a large number of platform support bitcoin payment, they can be smoothly connected to LApp, previously because of various platforms or the company bitcoin transaction cost and transaction time will also be more willing to join LApp and “hook”.In addition, LApp has incomparable advantage in the micro payment application scenarios, a large number of payment type LApp will emerge.

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The LApp charge calls

In the development and use of the application, compared with the development of DApp and the use of expensive cost, based on the lightning network LApp is almost free, it may have a large number of developers and users to the “affordable” blockchain experience.Another LApp user experience compared to DApp, will be more smooth and no friction.

But on the other hand, the development of lightning network may bring a shadow to other encryption currency, especially those that take the “pay” currency function route.When bitcoin entered the track, it is in this special field of currency, other competitors will face great challenge.

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Long after the coffee machine modification, can accept the lightning online payment

On the effect of lightning network bitcoin, there are mainly two points: one says that the rapid development of lightning network, lightning caused a lot of transactions through the network, it will reduce the income of miners, so bitcoin and its “mining scale” will have a negative impact; another view is that the popularity of lightning network, reduce the bitcoin use threshold and improve the user experience, will greatly enhance the bitcoin user scale, so the development of lightning network bitcoin is huge positive.

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