In 2015, the white paper appeared with the title “the Bitcoin Lightning Network:
Scalable Off-Chain Instant Payments“. It is a scale that describes the Blockchain for the Bitcoin. The Potential seemed (and seems) limitless: millions of transactions per seconds would be for Bitcoin to be feasible.In January 2018, the Bitcoin Lightning network went live. After an exponential growth, consolidation, and for some months a decrease of the network capacity followed. This gives room for a lot of Interpretation, analysis, but also criticism from the Lightning to the opponent.In this two-part article, we summarize for you the backgrounds, developments and facts, and give our analysis and assessment of the current Situation. The first article you can find here. Reading to the end will be worth it because there we have a little Surprise Video for you!
Contents
Influence of the Bitcoin prices on the Bitcoin Lightning network
The Bitcoin Lightning network launched in 2018, shortly after the collapse of the crypto bubble. The Testing of the Lightning network was associated with the Feeding of relatively cheap Bitcoin.In the course of the year 2018, the price of Bitcoin fell more until we are in March and April 2019, were at about 3,000 USD per Bitcoin. To catch exactly this time, the Lightning-to consolidate the network itself. In Parallel to the Bitcoin price rise to over USD 13,000 the liquidity. Correlation is not causality, but this is an indicator that some of the participants have invested in 2018, the Lightning network for the realization of profits exit (engl. cash-out).Many trade exchanges do not permit a Lightning-Payments. Furthermore, multi-path-payments are not yet implemented. That means that participants have fed into what Bitcoins in multiple Payment Channel, you must close them all individually and Bitcoin on-chain exchanges send.https://p2sh.info/dashboard/db/lightning network?orgId=1&from=now-2y&to=now & https://coinmarketcap.com/currencies/bitcoin/
Safety aspects and risk minimization
A Effect 2. Order safety concerns. Because the operator of a Lightning node with the Software, the input Bitcoins and your Private Keys online 24/7. Only on Friday the 30.08.2019 it was in the official mailing list a Bug Report. Rusty Russel, and I quote:
Security vulnerabilities have been found in various (older) Lightning-implementations, which can lead to the loss of deposits to himself.All Details will follow in the next 4 weeks until the 27.09.2019, please updated far in advance.
The Bitcoin price rising from $ 3,000 to $ 12,000, so an attack on a Lightning-node-operator pays to smooth four times more. The protection through Firewall and system updates, but most of the node operators is constant. Therefore, it will certainly give node operators want to remove a part of their liquidity out of the network and so the risk of loss minimize.Trade on the most successful Crypto-exchange. If you’re looking for a reputable point of contact, to act with real crypto currencies, then take a look at our Binance Test 2019! In this article, we have analyzed all the features and benefits of the crypto-exchange in more detail and evaluated. The most the most popular crypto-stock exchange today! Now on Binance sign up.
Liquidity needs
The Lightning network is regarded as a scaling method for micro-Payments. It makes little sense to operate a Lightning-node with 10,000 or 100,000 USD against the value, if the forwarded transactions are in the order of a few Cents and Dollars. The Lightning network is growing in the long term only in its liquidity, if more and more nodes operator to join their liquidity to the network. It depends on the Adoption of other users waves.
Adoption of the waves and the technical hurdles
To operate a Lightning-node, it means a software implementation of an easy to install, to associate with a Bitcoin Full Node to make the node to the Outside public and to observe the finally, this 24/7 and wait. This is true even for many Bitcoin supporters, not infrequently, a high technical hurdle. Projects such as Raspiblitz (low-cost DIY Lightning-node), nodlbox and casa-node (1-click Bitcoin-Lightning-nodes) are working to facilitate this.Savvy user of the first wave of leave so technically, the network will not be replaced so quickly by Shop owners and commercial users.
Private channels, and tougher metrics
Through technical innovations in the Trend, the Lightning network in the framework of Private-open channels to connect is increasing. A great example of Smartphone Wallets, such as Bitcoin Lightning-Wallet, which is open by Default on a private Channel to a public Lightning-nodes are. This of course makes analysis more difficult as it is to the Payment System and how it develops.Furthermore, Payments are only the transmitters, receivers and nodes on the routes is known. Therefore, the measure of the TRANS-action is the passage so it is not possible, and statistical assessments are difficult.Trading on BitMEX, with up to 100-fold leverage. Do you want to move also larger sums, but the money is missing? On BitMEX, you can act through the lever with 100€ a volume of up to€ 10,000 and your profit times the verhundert. Of thinking but always remember, the higher the leverage, the greater the risk! Now on BitMEX sign up.
Bitcoin Lightning network – a conclusion to the state
It is a fact that the liquidity and the number of the fed-Bitcoin declined in the last few months. To say simply that the solution is bad and not functioning, is intended to be short. You should note that the Bitcoin price has risen sharply, and factors result in the first and higher orders, which make sense to escape the network’s liquidity. The technical hurdles for the next user waves need to be reduced also. Advanced Features around the privacy in the network complicate and distort a superficial analysis of the Status of the network. Maybe a System that works and nobody knows why, and how well, exactly, what to expect, the developers from the Lightning network.In any case, the developments to the Lightning network are multi-layered, complex, and fascinating at the same time. We will be watching the development continue to be sharp and in the frame of Meetups and Guides more Demos to the status of the network type.In the Following example you will rotate the recording of our Meetups from Münster, in the case of the all about Bitcoin Lightning network. We wish you much fun with the Video!