Author: Saravanan Vijayakumaran 2017-11-18 01:09:40
Published on: 2017-11-18T01:09:40+00:00
Christian Decker and Benjamin Mord are discussing the Lightning network (LN) routing protocol in an email thread. Christian explains that the current LN routing protocol is minimal and pushes the entire network's topology to the edges, which is not set in stone. They are actively working on finding better solutions to the problem of finding routes across a vast network of millions of nodes.Benjamin suggests cataloging unproven mathematical assumptions and/or cryptographic primitives required by cryptocurrency technologies could help respond faster to cryptanalytic surprises. The lightning network could help resolve the problem of centralization in Bitcoin. Although it is economically probable that a small number of liquidity providers will control the flow, off-chain channel rebalancing mechanisms like the proposed "revive" protocol could help resolve this issue.In terms of hub formation, it is unlikely that they will form due to their high cost. Despite predictions on how the topology will look, we should be careful as nobody can be sure about what will happen.The lightning network seems extremely valuable and scalable, even if off-chain payment rebalancing is not possible. Lightning network centralization is not an existential risk compared to mining centralization risk. Rebalancing is definitely possible, with options such as disincentivizing the use of a channel until it has been rebalanced or opening another channel for a long-term imbalance. Transaction fees are required only for channel setup/tear down, greatly reducing fees. Ultimately, automations are being built to take care of improving the network topology so that users won't have to do anything themselves.By aggregating payments off-chain, fees can be paid on-chain, encouraging participants to open channels that support the network as a whole, not just themselves.
Updated on: 2023-05-24T03:01:22.743319+00:00