Author: Benjamin 2015-06-28 17:18:03
Published on: 2015-06-28T17:18:03+00:00
The Lightning Network is a proposed solution to the problem of scalability in Bitcoin transactions. It involves participants in the network having connections to various hubs, through which they can send or receive coins via atomic transactions. The network allows for payments to be made without being recorded on the blockchain until settlement with the hub is required. Each channel in the network has a pseudonymous identity and channels can be coinjoin'd when the other party is cooperating. There are, however, some significant problems with the concept of hubs, including questions about the knowledge parties have of each other, the incentives for hubs to participate and how complexity is reduced. While the Lightning Network is an interesting idea, it is far from actual implementation.
Updated on: 2023-06-10T01:18:59.876592+00:00