According to experts, the full activation of the Lighting Network Protocol of Bitcoin can be one of the most important events in the history of existence, the first cryptocurrency in the world. This Protocol will enable users to conduct an unlimited number of micropayments outside of the blockchain, thereby eliminating the problem of low throughput and high commissions in the network. However, Bitcoin is not the only blockchain that develops and works on the adaptation of this innovative technology.
The role of the Protocol Lightning Network on the stock market
The first alpha release of the Lighting Network Protocol in the Bitcoin blockchain was launched in early 2017. By January 2018, the company Blockstream responsible for the implementation of the Protocol has just announced that the Lighting Network is activated for 60 nodes available in Mainnet and running in test mode. At the moment the network consists of 831 nodes and 1780 open channels.
Initially, the Protocol Lightning Network was conceived as an add-on for Bitcoin and blockchain is a network of bilateral payment channels through which you can make unlimited number of transactions. Thanks to the Lightning Network, the network users can make unlimited number of payments without recording them in the blockchain — there gets only the final balance. Thus, the Protocol would be an alternative to increasing the block as a solution to the problems of network scalability.
The problem developers face many cryptocurrencies. Today, besides Bitcoin, on the practical implementation of the Protocol or a similar add-in Litecoin blockchain work, zcash for, Ethereum and Ripple. Also at the end of January it became known about the plans of developers Stellar add Lightning Network to improve the security of the network and increase its bandwidth.
Bitcoin Core developer Jeremy Rubin, and concurrently head of the team Lightning Network in Stellar, I am sure that the Protocol required of any of the payment platform:
“Lightning is perhaps the most important innovation of the Protocol, which is now being implemented in the crypto-space. When the Lightning of bitcoin network will be fully launched online, any community that had not prepared his ofchain-solution for scalability, must be left behind to swallow the dust”.
Solutions similar to Lightning Network
However, not all blockchain projects are interested in the implementation of the Lightning Network in the same format as Bitcoin.
The developers of Ethereum in December 2017 launched its project Raiden— offscan technology scaling network which, like the Lightning Network, provides the payment channels outside the blockchain. At the same time on a similar project Trinity has a team of platform Neo. Despite the fact that these projects are running on different code, both have the same goal — to deploy a separate network for transactions “over bloccano”.
A group of cryptographers working on cryptocurrency with a high degree of confidentiality zcash for, offered a new technology to conduct anonymous cryptopedia — Bolt project. While it is still under development, and it is unknown when it will be implemented.
The developers of some projects believe that the solution lies in the scaling of the blockchain at a basic level. So, cryptocurrency Grin, whose launch is planned for this year, will use sophisticated cryptography of the blockchain so that unnecessary information is eventually “eaten”. In the long term, the blockchain will use less space as you grow.
Other teams consider Lightning Network as part of a multifactorial approach to solving the problem of scaling the blockchain, which contains a lot of potential. In the road map Stellar indicated that cryptocurrency doesn’t need the Lightning Protocol Network, but this technology will have a huge positive effect on long-term scalability and reliability of their blockchain network. This is evidenced by the technical Director of Ripple’s Stefan Thomas, noting that the registry XPR is already more scalable than the blockchain of bitcoin. Nevertheless, the team actively explores technology billing channel second level to work with the future users.
The development of the Protocol Lightning Network
Now some players on the stock market to discuss the opportunities that will be opened when merging multiple networks, Lightning Network. However, as noted by Elizabeth stark, co-founder and head of the Lightning Labs — one of the many startups working on this idea, anywhere outside of bitcoin and litecoin until there are no successful adaptation technology:
“Some communities are interested in the idea and has already begun early development, but to implement them will take time”.
However, the introduction of technology will promote development of the industry, where is the place of cryptocurrency exchanges is a technology that allows users to share all kinds of assets on different blockchains. We are talking about atomic swaps, which have become possible exactly thanks to the Lightning Protocol Network. This marks and stark:
“I feel that many cryptocurrencies are interested in swaps between blockchains in a decentralized exchange technology. And Lightning — a direct path to it.”