Author: light at bitseed.org 2016-03-11 18:06:43
Published on: 2016-03-11T18:06:43+00:00
A proposal for a Decentralized Service Provider (DSP) has been suggested to grant end users access to the Lightning Network. The DSP would manage Bitcoin deposits and withdrawals, the Lightning Network channel(s), and communication with end users and the Lightning Network. Deposit addresses for the DSP are multi-sig addresses, so that a majority of DSP's entities is required to sign withdrawals. Lightning Network channels are also managed in this multi-sig style. This construction makes it impossible for a single entity of a DSP to steal end user Bitcoins; collaboration from the majority of entities is necessary for this to occur. Communication between DSP entities and their end users is done via signed messages. If an entity is acting maliciously, other entities can exclude it from the DSP by transferring control of the managed Bitcoins and channels to new multi-sig addresses/channels that don't require the malicious entity's signature. A hybrid of Bitcoin multisig voting pools, Open Transactions servers, and Interledger-style contracts could be used to fulfill a similar purpose to that described in the proposal. The real magic seems to be in the pathfinding between hub nodes and endpoints. Fewer blockchain channels would be required with DSPs, as not every end user needs their own channel. Thus, DSPs could save even more space on the Blockchain than Lightning alone.
Updated on: 2023-05-23T23:09:32.290648+00:00