Principle of BTC lightning network

1.

According to 1ml data, the current number of bitcoin lightning network nodes has reached 18061, an increase of 7.30% in the past 30 days; The number of channels was 40065, which increased by 5.9% in the past 30 days; Network capacity reached 1154 BTCs, an increase of 6% in the past 30 days

blockchain technology workstation under "BTC

Lianqiao ecation online" is the only approved "blockchain Technology Specialty" pilot workstation of "smart learning workshop 2020 Xueshuo innovation workstation" launched by the school planning, construction and development center of the Ministry of ecation of China. Based on providing diversified growth paths for students, the professional station promotes the reform of the training mode of the combination of professional degree research, proction, learning and research, and constructs the applied and compound talent training system

2.

First of all, all parties need to establish a multi signature wallet (more than one signature is needed for transaction). This wallet has some bitcoin in it. Then the wallet address is saved in the bitcoin blockchain. In this way, payment channels are established. Both parties can now conct an unlimited number of transactions without touching the information stored on the blockchain. For each transaction, both parties sign an updated balance sheet to always reflect the ownership of bitcoin stored in the wallet and the number of each transaction

after both parties complete the transaction and close the channel, the balance generated will be recorded on the blockchain. In the event of a debt dispute, both parties can use the recently signed balance sheet to recover their share of the wallet. There is no need to establish a direct channel for flash trading, users can send payment to someone through the channel of the person they have contact with. The network will automatically find the fastest trading channel

with the adoption of segwit in bitcoin and lightcoin networks, the development of this technology has been greatly promoted. Because if there is no upgraded transaction scalability patch, the transaction risk on the lightning network will be too large to implement. Without the blockchain security behind it, lightning network will not be so secure, which means that it will be widely used in small or even micro transactions with less risk

Lianqiao ecation online" is the only approved "blockchain Technology Specialty" pilot workstation of "smart learning workshop 2020 Xueshuo innovation workstation" launched by the school planning, construction and development center of the Ministry of ecation of China. Based on providing diversified growth paths for students, the professional station promotes the reform of the training mode of the combination of professional degree research, proction, learning and research, and constructs the applied and compound talent training system< br />

3. Lightning bitcoin has not been well known because it is a bifurcated coin of bitcoin. Many users in the coin circle instinctively dislike this kind of token. Fork coin has now become synonymous with money and running. But what you may not know is that all bifurcated bitcoin can be called currency in the eyes of foreign regulators. The US SEC only recognizes bitcoin and Ethereum as currencies because they have not concted ICO in public channels. Accordingly, these bifurcated currencies are regarded as currency. And lightning bitcoin is the only one that doesn't pre dig in the fork coin. You can imagine that bitcoin is 100 banknotes issued by a bank, and all kinds of bifurcated banknotes are equivalent to banknotes of different denominations issued by the bank. You may not be able to understand the valuable value of this. When it comes to the circulation of entities, if you are a bifurcated coin of bitcoin, it is easy to pass the government compliance. In short, the reason why the Grand Prince BCH can get through the physical circulation in Japan so quickly is just the light of bitcoin
then why should I say that lightning bitcoin is a great currency experiment? We compare lightning bitcoin to a free economy with three major stakeholders: developers, miners and holders

so far, no blockchain project can effectively govern the three. Why? The reason is very simple. In an ICO project, the developers, coin holders and even miners are the same group. It's easy to understand. Why should he give the best interests to the ICO holders? This is obviously not in line with human nature. The reason why lightning bitcoin dares to do chain governance is related to the issuing mode of lightning bitcoin. LBTC's "governance on the chain" is another attempt to "decentralize", which is also very eye-catching. Dpos mechanism determines that there are 101 nodes in the network. At the same time, unlike pow, the right of choice is in the hands of the coin holder. These nodes will be elected by the vote of the coin holder. When the node does not act, the user can vote out of the network. According to last week's weekly report, LBTC's block browser has also added this function, which can view the operation of nodes in real time. It also paves the way for LBTC's "chain governance". In the LBTC system, all coin holders can vote to decide whether the project development proposal will go or stay, and all members of the organization can participate in the decision-making and operation of the organization. In addition, the 5000 standard of lockup after the election of the lightning node ensures that the node is both a mine pool and a coin holder. In this way, the relationship among miners, developers and users is well balanced, and the foundation of an autonomous organization is formed.

4.

To be honest, I had the same problem with the subject at the beginning. When I saw the news, I was a little confused and went to search. As a result, when I searched for lightning bitcoin or lightning bitcoin, either lightning network or bitcoin came out... This name is quite poisonous

Let's get down to business. Let's draw a conclusion first. It's not a thing at all

many people have talked about what lightning network is. You can look at other people's answers to get a deeper understanding of its mechanism, or you can go to the official website with better English to see their papers directly http://lightning.network/ . Lightning bitcoin official website in Chinese, save the trouble of translation https://lbtc.io/ . The origins of the two lightning bolts are very similar. They both hope to solve the problem of bitcoin network congestion. One is to carry the protocol, and the other is to change the fork to consensus. The results of the two lightning bolts are also good. The transaction speed is greatly improved, which can be regarded as real-time. The following table directly shows the similarities and differences between the two:

as can be seen from the above, the differences between the two are relatively large, and should not be confused any more~

5.

Lightning network is known as one of the most effective cryptocurrency expansion solutions currently being developed. The scheme was proposed in 2015, based on a network at the top of bitcoin blockchain, and finally implemented on the network. The network consists of user generated channels that send payments back and forth in a secure and untrusted manner

For example, suppose I want to pay for every minute I watch. We're going to open up a lightning channel, and as time goes on, we're going to make regular payments from my wallet to the video makers. When I finish, we will close the channel to settle the net balance on the bitcoin blockchain. Because transactions are only between me and the other party and do not need to be broadcast to the whole network, they are almost instantaneous. And because there is no incentive for miners, the transaction cost is low, or even no transaction cost at all

6.

It has been ten years since bitcoin was born. Ten years ago, if someone had told his founder, Tsui Nakamoto, that this new decentralized currency would flourish in 2019, he might have thought his experiment was a success. Bitcoin is indeed likely to become a world currency. Even if it is not as magical as Nakamoto said, even today, 10 years later, there are still people criticizing the ideas in its white paper

Although bitcoin has become a widely used investment and speculative asset, e to its own design and huge demand, bitcoin is far away from its goal of completely decentralized free currency. But if the new solution does solve some of the existing problems, then its status quo will certainly be greatly improved< as long as the transaction cost of bitcoin blockchain is not higher than lightning network, users will not transfer assets to other public chains. If bitcoin blockchain can continue to expand the transaction processing capacity through other solutions besides lightning network in the future, it may eventually develop into the world currency originally conceived by Nakamoto

7.

In February 2015, bitcoin developers Joseph PON and Thaddeus dryja proposed the concept of scalable off chain payment -- Lightning network in their paper the bitcoin lightning network: scalable off chain instant payments. We know that a very important reason why the bitcoin network is reliable is that all the bitcoin nodes keep the bitcoin account books. If someone wants to tamper with the transaction records, they need more than half of the computing power of the whole network. Without the trust machine of blockchain network, how can we ensure that both sides of the transaction will not go back and deny? How is lightning network realized

in short, the lightning network is based on the expansion of bitcoin. Due to the limitation of bitcoin block, a new channel is required. The process of small amount delivery can be realized through the channel of lightning network without bitcoin miner accounting, which can speed up the speed and rece the handling charge. But how can such lightning network prevent the centralization problem? More details this video is very detailed: six minutes to understand the lightning network

but how long can the lightning network land

8. The most critical point of bitcoin's trading network is its trading performance: the speed of seven transactions per second in the whole network is far lower than that of traditional financial trading system; At the same time, waiting for the trusted confirmation of six blocks results in a final confirmation time of about one hour
the main idea of lightning network is very simple: put a large number of transactions outside the bitcoin blockchain
RSMC guarantees that the direct transaction between two people can be completed under the chain, while HTLC guarantees that the transfer between any two people can be completed through a & quot; Payment & quot; Channel. By integrating these two mechanisms, the transaction between any two people can be completed under the chain
in the whole transaction, smart contract plays an important role as an intermediary, while blockchain ensures that the final transaction result is confirmed.

9. No need to ask, either e-commerce or online lending.

10. Lightning network is just a simple double entry bookkeeping system, which is built on the three form bookkeeping system of bitcoin. Double entry bookkeeping is fast, and there is no need to worry about the bottleneck of throughput, because only the two sides of the transaction record their transactions, they do not need to pass their transaction records to everyone. But this double entry bookkeeping system relies on and is supported by the triple entry bookkeeping system. You can get the throughput of double entry bookkeeping and the security and no intermediary trust of triple entry bookkeeping at the same time

the working principle of lightning network is to create an interweaved network composed of two payment channels. Basically, it's a trade between two people. However, by creating a network in which all channels are interconnected, you can route payments through multiple channels. If you want to send payment to anyone in the network, you can credit the account directly connected with yourself (deposit money to the account) in your Lightning network channel, and then the account can credit the account connected with yourself (the amount is the same, so there is no actual change in value). This process continues, Until you pass it on to the participant you actually want to trade, he will receive the money

therefore, technically, you are only trading with an account directly associated with the payment channel where your funds were originally sent. So, every routing connection between you and the ultimate payee is made up of two participants who simply trade with each other, each of whom accounts for each other - a series of double entry paths. Lightning network is a network composed of double entry accounting channels of two participants, so there is no bottleneck in transaction throughput.