How will the Lightning Network Change Bitcoin Transactions
Mar 22, 2018 Posted / 1738 Views
The bitcoin network got struck with a problem of delayed transaction processing and abnormal high fees sometimes in mid 2016. Very many solutions were proposed top eradicate the vice which was threatening the very existence of bitcoin. An entire fork on the network was carried out to try to solve the scalability problem.
One of the most feasible solution which was vetted by the bitcoin community is the lightning network. The approach of the Lightning network is that another new layer of network is developed and added on the existing layer which is just 1 mb in size. The new network would handle transactions processing off the main chain as the former does just transaction verification. This way the network is kept running without much transactions backlog caused by prolonged queueing of individual transactions.
However this idea has been under test and development by Lightning Labs the group of developers who proposed it. The other solution to the scaling debate was the use of segregated witness (segwit) and idea which emphasised more on increasing the bitcoin block size. Meanwhile the segwit idea is already deployed on the bitcoin mainnet running the Bitcoin Cash alt-coin, lightning network solutions still be realised.
Some cryptocurrency exchange have already successfully tested transaction on the lightning network. Recently Bitrefill, a platform where users can add cell phone credit using cryptocurrency announced that lightning network transactions will be tested on the platform using testnet bitcoins.
More companies are coming up to test the lightning Protocol on their platform. VPN provider Torguard is among some of the first companies to announce that it will be accepting payment through the lightning network. Although the company gave an early warning that the network is just on the earlier stages of development and may not yet be production ready yet.
Hardlined bitcoin users who believes in the philosophies of bitcoin are among some of the supporters of the bitcoin lightning network. These people believe in the idea being fine tuned by lightning Labs that it could change how transaction is carried out in the bitcoin ecosystems. With very solutions and successful forks currently going on in the bitcoin network its most likely that bitcoin network would have multities .
However the lightning network i not all good news like most of us were anticipating, there are some tradeoffs the development team had to make so as to build the protocol. The lightning network could possibly have a prepaid fees and penalties for it’s usage which will become a major barrier for new users.
Secondly a lot of developers are now considering that the idea is the future of bitcoin transaction which is in a way shiting away people from improving on immutable transactions. The network also requires a dual signing arrangement ( permissioned funds) which puts users back in the centralized banking system.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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