Author: Samuel Kremser 2016-03-11 08:49:49
Published on: 2016-03-11T08:49:49+00:00
A proposed improvement for the Lightning Network called Decentralized Service Provider (DSP) is being discussed. The DSP would grant end-users access to the network, removing the need to validate the blockchain or worry about closing times of channels. Each DSP would consist of several entities who would manage tasks in a collaborative manner including managing Bitcoin deposits and withdrawals, managing the Lightning Network channel(s), and communication with end-users and the Lightning Network. Multi-sig addresses are used to prevent a single entity from stealing end-user Bitcoins. DSP entities communicate with signed messages with their end-users and with each other, so everything is provable. It is also possible to exclude malicious acting entities from DSPs by transferring control of the managed Bitcoins and channels to new multi-sig addresses/channels that do not require the malicious entity's signature. Fewer channels are required with DSPs, saving space on the blockchain.
Updated on: 2023-05-23T23:07:38.522661+00:00