Published on: 2015-08-11T04:17:53+00:00
In a recent discussion on the bitcoin-dev mailing list, Joseph Poon addresses questions about online identification and non-cooperative hubs in relation to the Lightning Network. He explains that if a node is offline during a payment transaction, the payment can be cancelled and re-routed. However, the Lightning Network currently does not solve the key exchange problem, which requires out-of-band public-key infrastructure for user identification. Poon suggests that every transaction should have signed proof of payment to ensure that the recipient receives the funds.Poon also discusses the issue of non-cooperative hubs flooding the network and making it unusable. He explains that there are incentives for keeping the system functional through fees. If someone attempts to flood the system, they will likely end up paying substantial fees, which could be seen as an attack by those running nodes. Poon emphasizes the importance of considering various attack models.Thomas Zander challenges the belief that Bitcoin's reason for existence is to avoid trusting anyone but oneself. He argues that a trustless system is one where it is possible to trust everyone, even the untrustworthy, through high confidence in faithful behavior. Trust, in this sense, encompasses expectations of faithful behavior and blind reliance. Zander suggests that a strongly decentralized system requires this approach to avoid driving towards natural monopolies.Jorge Timón and Adam discuss how trust can be involved in different ways with Bitcoin. Timón argues that deviating from the trust-no-one path compromises Bitcoin's functionality, while Zander proposes that risks can be mitigated by having various data centers around the world where software can be run. Zander provides examples of how Bitcoin could benefit the unbanked population and emphasizes the need for larger blocks for these use cases.The concept of trust in the Bitcoin world is not binary. While some people distrust established financial systems, there are individuals within the Bitcoin sphere who need to be trusted for important tasks such as managing the Wiki and Github repository. The lightning network is often praised as a trustless system, but it still requires trust during transactions in the channel. There is confusion about the trade-offs involved in decentralization and reaching consensus, and many people may not fully understand the implications of claims about the "trustlessness" of Bitcoin.In an email conversation between Thomas Zander and Adam Back, they discuss on-chain and off-chain transactions. Back argues that Bitcoin is designed for people who are not fully comfortable trusting others with their money. However, Zander clarifies that the goal of Bitcoin is not to eliminate trust completely but rather to reduce the need for it in certain situations. Bitcoin allows users to hold money and conduct transactions without relying on centralized authorities like central banks. Zander suggests that providing security at scale may be possible with lightning-like protocols.The discussion also touches on the topic of trust in the Lightning Network proposal. Participants debate whether explicit trust and identification are necessary, and if non-cooperative hubs could flood the network. One participant argues that Lightning assumes explicit trust and ID, similar to Ripple, but this approach will not work. Another participant suggests that Lightning does not require explicit trust and that coins can end up blocked until the next in-chain broadcast. Trust takes various forms and is not a binary function, and insights from the history of money can help understand these problems.Overall, trust in the Bitcoin network is multifaceted and not black and white. While there are different levels of trust required, terms like "trustless" and "decentralized" indicate an acceptable level of trust in the system. The development of lightning-like protocols may provide increased security while maintaining scale and decentralization. It is important to consider the implications of claims about trustlessness in Bitcoin and strive for a system that allows users to trust everyone while minimizing the risks associated with trust relationships.
Updated on: 2023-08-01T15:04:06.682711+00:00