Introduction - Trust Model of Bitcoin

Addressing this issue: https://github.com/lnbook/lnbook/issues/407
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Imran 4 years ago committed by GitHub
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@ -29,8 +29,13 @@ While verifying 40,000 ECDSA signatures per second seems barely feasible (c.f.:
But what if each node wasn't required to know and validate every single transaction? What if there was a way to have scalable off-chain transactions, without losing the security of the Bitcoin network?
In February 2015, Joseph Poon and Thaddeus Dryja proposed a possible solution to the Bitcoin Scalability Problem, with the publication of _"The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments"_ footnote:[Joseph Poon, Thaddeus Dryja - "The Bitcoin Lightning Network:
Scalable Off-Chain Instant Payments" (https://lightning.network/lightning-network-paper.pdf).] In the meanwhile outdated whitepaper, Poon and Dryja estimate that in order for Bitcoin to reach the 47,000 transactions per second processed at peak by Visa, it would require 8 GB blocks. This would make running a node completely untenable for anyone but large scale enterprises and industrial grade operations. The result would be a network in which only a few users can actually validate the state of the ledger, which ultimately breaks the trust model of Bitcoin.
In February 2015, Joseph Poon and Thaddeus Dryja proposed a possible solution to the Bitcoin Scalability Problem, with the publication of _"The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments"_
footnote:[Joseph Poon, Thaddeus Dryja - "The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments" (https://lightning.network/lightning-network-paper.pdf).]
In the meanwhile outdated whitepaper, Poon and Dryja estimate that in order for Bitcoin to reach the 47,000 transactions per second processed at peak by Visa, it would require 8 GB blocks.
This would make running a node completely untenable for anyone but large scale enterprises and industrial grade operations.
The result would be a network in which only a few users can actually validate the state of the ledger.
Bitcoin relies on users validating the ledger for themselves, without explicitly trusting third parties, in order to stay decentralized.
Pricing users out of running nodes forces the average user to trust third parties to discover the state of the ledger, ultimately breaking the trust model of Bitcoin.
The Lightning Network proposes a new network, a "second layer", where users can make payments to each other peer-to-peer, without the necessity to publish a transaction to the Bitcoin blockchain for each payment.
Users may pay each other on the Lightning Network as many times as they want, making use of the Bitcoin blockchain only in order to load bitcoin onto the Lightning network initially and to "settle", that is: remove bitcoin from the Lightning Network.

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