Piggy banks

Not Be a Bad Thing: Bitcoin’s Dropping Lightning Capacity

October 8, 2019 at 10:46 AM | By Jit Sutradhar News

If you’re a fan of bitcoin and newborn lightning network, this graph looks pathetic at first glance.

Screenshot-from-2019-09-24-18-07-08

Chart ability of bitcoinvisuals.com lightning. The orange line is the BTC capacity; The blue line is the dollar value.

The lightning network is supposed to be superhero Bitcoin, taking cryptocurrency to new heights facing his toughest problem and the most obvious: if cryptocurrency is ever going to “follow the mainstream,” must be to support a million times more transactions than today – which is no easy task.

However, by the looks of this chart, lightning seems to be losing momentum. The amount of funds locked in the two-layer network appears to be decreasing, seeming to indicate that fewer people use it as a form of payment. Lightning “channel” is like a gateway to the rest of the network, allowing a user to send a payment to any other user.

While lightning still considered the “beta” software, and therefore risky to use, bitcoiners have been so enthusiastic and use it anyway, for games and beyond, singing the unofficial motto “reckless.” As the capacity of the beam increased rapidly during its first year, devotees cheered on social media.

The problem is that, while this number is decreasing, the use of lightning might actually still be increasing due to increased privacy rays channels and other optimizations channel.

“There is no way of knowing the capacity of [the lightning network]. we only know the channel capacity of public, not private, “Roy Sheinfeld, CEO of Breez CoinDesk said.

And at least one company says that – at least in your experience – ray payments are collected.

“We are making increasing volumes of dollar value on the lightning network. What I’m seeing is the price goes up and therefore people need fewer coins enclosed in channels to maintain purchasing power, “Brewster said Danny FastBitcoins MD CoinDesk.

A tale of two nodes

So while seeing so far this issue has been a spectator sport – football geeks – it may not be for much longer. This number will grow harder to track over time.

This is because many portfolios rays do not advertise if there are channels for the rest of the network, by default.

Under the hood, there are channels “announced”, announcing its existence to the rest of the network and lightning “unadvertised” channels that do not. normal channels used by everyday users who just want to buy pizza and draw dicks online with lightning, do not need to be advertised.

“Many portfolios in recent months have been released, it defaults to channels that are not advertised, these channels do not appear in any public metric, so rely on public metrics single reality only shows half the picture, “Lightning labs CTO Laolu CoinDesk Osuntokun said.

Generally advertised channels only have to be used by routing nodes, so the strongest nodes that receive payments from one person to another and have to be online all the time.

Zap creator Jack Mallers argued that “solely responsible” that “anyone who is not a routing node [used] [privadas’no announced ‘] channels.”

Some go so far as to argue that public capacity is a “useless indicator” because it does not capture all – or even most – of money in network lightning.

Because more applications are starting to follow these best practices, Sheinfeld guesses that “most” channels are private, and said his ministry Breez has opened “thousands” of private channels only in the last couple of months only .

“Breez opened thousands of private channels in the last two months. Lightning Labs also opens autopilot private channels, “he said.

This is one reason why many developers see a ray of providing more privacy than chain Bitcoin transactions. While Bitcoin has a reputation for giving users anonymous transactions are public reality. Ray hides a little more of the details of the transaction.

“If a regular bitcoin transaction is similar to upload your statement on a public website, a transaction Lightning network is similar to that shown every trader to pay the amount of money you have in a specific compartment of your portfolio. You’re still revealing some facts, but much less, “wrote SuredBits as lightning start.

Garbage day

Another reason for the capacity is decreasing is because some companies are closing channels rays were a waste.

“Based on my knowledge, declining channel operators is simply node being rational to close the channels that have been open for some time, but have no significant activity I forward,” Osuntokun said.

For example, there is a ray of famous and mysterious anonymous user with the name of LNBIG has opened many channels rays. Initially he debuted initially pouring 300 bitcoin network of lightning, giving new meaning to the “reckless” phrase lightning.

“At the beginning of my work, I have opened many channels with the hope that they will be used (and because of the imperfection of autopilot),” the person behind CoinDesk LNBIG said.

However, the secret developer said, these channels are used not really much at all. They were not more open and sit there.

“But time has shown that many channels have not been used once for two to four months, for example, and the funds they are, however, locked,” continued LNBIG.

The funds are “locked” as LNBIG places, because of the works so rays. Lightning “channel” is like a gateway to the rest of the network, allowing a user to send a payment to any other user. But when someone opens a “channel” with someone else and do not use it, then other people can not use that gateway.

Therefore, it makes sense to release this capability and wait to see if the new channel is opened want to use the capacity, which is exactly what LNBIG decided.

LNBIG published a survey of Twitter before going ahead with the closure of these channels, arguing that the only drawback would be the “psychological effect” that the ability of lightning would fall to 825 Bitcoin.

As the decreased ability ray shows, Twitter LNBIG encouraged to move forward.

Piggy bank image via Shutterstock

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

Comments (0)

    Write a Reply or Comment

    You must be Logged In or Sign Up to post a comment.