in

Great LN explainer

Great LN explainer

https://reddit.com/r/<a title="" class="aalmanual" href="https://cryptonewmedia.press/category/bitcoin/">Bitcoin</a>/comments/q7aci9/great_ln_explainer/


View Reddit by simplelifestyleView Source

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

11 Comments

  1. A couple things that should be pointed out:

    1. The “final” purpose is that you shouldn’t have to open channels with the bar, but your existing channels, and the use of HTLCs will allow for transactions to be routed.

    2. The Bitcoin isn’t being sent back and forth but instead these updated balances are kept off chain. Previous transactions cannot be published without risk of penalty, and that the actualization via broadcast can occur by either parties, at any times.

  2. I’ve wanted a video like this for ages… It’s so much cooler knowing whoever made this used software I helped build six years ago in my first full-time “developer” job – I’d recognise it anywhere!

  3. That’s a really good explanation!

    For most of it at least; I dislike how the initial explanation suggests that payments still need to get “finalized” on the blockchain: No, they don’t, because none of the parties can cheat, payments are already pretty much final on LN for all practical purposes. E.g., my node has channels which have been up from 2.5 years ago and I have no plans to close them, ever.

    On the other hand, the IOU part is trickier: Most of the time the funds won’t be IOUs, but they actually could be: One can start using LN right away before any channel opening, and in the meantime any funds received are IOUs.

  4. This was actually amazingly done, I just sent this to my GM and some friends who had been asking about LN. Breaks it down nicely and even made sure to cover that you don’t need channels with everyone you want to transact with (this concept is glossed over in many explanations or not made clear to many early users)

  5. If every person in the world would want to open one single channel, which is required for using LN, this would take years. At 7 transactions/sec, bitcoin’s blockchain can process only less than 221 million transactions/year. So, for 7 billion people that would take almost 32 years, assuming the blockchain is processing exclusively this opening of channels, which is extremely unrealistic of a case. Even then for only 1 billion channels this would take more than 4 years in this unrealistic scenario. So, how is LN really scalable for the alpha bull martian case of hiperbitcoinization becoming world’s only currency and unit of account? I’m I getting something wrong here?

  6. Personally I like to think of channels instead as joint bank accounts between two parties. The two parties then each have a private ledger that keeps track of who owns what in the joint account. When the channels closes, the parties can jointly or individually close the account and present their ledger to the settlement layer. In instance of dispute the person with the most recent ledger can present it to the settlement layer to collect the whole balance as restitute. If you have enough people with these joint accounts you can play telephone to make payments to anyone connected.

What do you think?

UNI in a tight range below $26

Bringing DeFi to Agriculture Industry, Lydium ICO Begins First Phase

Bringing DeFi to Agriculture Industry, Lydium ICO Begins First Phase