@ -34,9 +34,9 @@ Let us assume the usage of Bitcoin grows so that the network has to process 40,0
Assuming 250 Bytes on average per transaction this would result in a data stream of 10 Megabyte per second or 80 Mbit/s just to be able to receive all the transactions.
This does not include the traffic overhead of forwarding the transaction information to other peers.
While 10 MB/s does not seem extreme in the context of high-speed fibre and 5G mobile speeds, it would effectively exclude anyone who cannot meet this requirement from running a node, especially in countries where high-performance internet is not affordable or widely available.
Users also have many other demands on their bandwidth and cannot be expected to expend this much only to receive transactions.
Users also have many other demands on their bandwidth and cannot be expected to expend this much only to receive transactions.
Furthermore storing this information locally would result in 864,000 Megabytes per day. This is roughly 1 Terabyte of data or the size of a hard drive.
While verifying 40,000 ECDSA signatures per second seems barely feasible (c.f.: https://bitcoin.stackexchange.com/questions/95339/how-many-bitcoin-transactions-can-be-verified-per-second) nodes could hardly catch up initial sync of the blockchain.
While verifying 40,000 ECDSA signatures per second seems barely feasible (c.f.: https://bitcoin.stackexchange.com/questions/95339/how-many-bitcoin-transactions-can-be-verified-per-second) nodes could hardly catch up initial sync of the blockchain.
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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?
@ -131,7 +131,7 @@ migrant::
Farel is an immigrant who works in the Middle East and sends money home to his family in Indonesia. Remittance companies and banks charge high fees, and Farel prefers to send smaller amounts more often. Using the Lightning Network, Farel can send bitcoin as often as he wants, with negligible fees.
software service business::
Wei is an entrepreneur who sells information services related to the Lightning Network, as well as Bitcoin and other cryptocurrencies. Wei is monetizing his API endpoints by implementing micro-payments over the Lightning Network. Additionally, Wei has implemented a liquidity provider service that rents inbound channel capacity on the Lightning Network, charging a small bitcoin fee for each rental period.
Wei is an entrepreneur who sells information services related to the Lightning Network, as well as Bitcoin and other cryptocurrencies. Wei is selling these information services over the Internet by implementing micro-payments over the Lightning Network. Additionally, Wei has implemented a liquidity provider service that rents inbound channel capacity on the Lightning Network, charging a small bitcoin fee for each rental period.
@ -85,8 +85,8 @@ Lightning wallets can be installed on a variety of devices, including laptops, s
The category "Third-party Lightning Nodes" can again be subdivided into:
- Lightweight: means that the Lightning Node is operated by a third party and that the wallet obtains the required information through an API that connects the wallet and third-party Lightning node.
- None: means that not only is the Lightning Node operated by a third party but most of the wallet is operated by a third party in the cloud such that the wallet does not even need to make calls on a Lightning node API.
- Lightweight: means that the the wallet does not operate a Lightning node and so needs to obtain information about the Lightning Network over the Internet from someone else's Lightning node.
- None: means that not only is the Lightning Node operated by a third party but most of the wallet is operated by a third party in the cloud. This is a "custodial" wallet where someone else controls the custody of funds.
These subcategories are used in Table <<lnwallet-examples>>.
Andreas M. Antonopoulos
4 years ago