Bitcoin (BTC): Lightning Network, Real Web 3.0?

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The report published by Diamond Hands is particularly interesting for understanding the potential of Bitcoin and its level of scalability, the Lightning Network. When Bitcoin changes the currency type, Lightning changes the payment. Will the internet of tomorrow affect censorship and deplatforming?

Bitcoin: from a currency revolution to a new payment method

If bitcoin is often presented as a currency and then potential store of value thanks to you Management system that guarantees absolute scarcityLightning transforms payments sector. Lightning Network, Bitcoin scalability level increases transaction throughput exponentially

If some blockchains like Solana or Cardano guarantee high transaction throughput, it is because of them Ignore decentralization and fault tolerance. Lightning, on the other hand, works very well as a payment system: safe, fast, inexpensive, relatively private.

Bitcoin is like an onion

Bitcoin’s current design is particularly attractive intellectually. Like the Internet, the protocol is built with interchangeable system. When computers started communicating with each other, each network used different communication protocols. Gradually, the TCP / IP model consists of 4 layers, which work independently of each other. become normal.

The advantage is that developers can do this Work and specialize at any level without worrying about compatibility issues. This sleek design allows for Lightning Minimal errors and bugs.

The Lightning Protocol (BOLT) specifications are also integrated in layers: network layer, messaging layer, P2P layer, routing layer and payment layer.

magic market

Like Bitcoin, Lightning relies on it. economic incentives and the assumption that man is greedy and will be greedy tomorrow. Therefore, users have an incentive to run the system at the cost of transaction routing fees. This economic motive encourages network members to seek out business opportunities.

Each node can set a payment forwarding fee charged per channel. On the other hand, payers usually choose clear payment channels that minimize the overall commission.

In the end, Free competition between routing nodes contributes to efficient capital allocation and optimal rates in the Lightning Network. The market rationally protects the fundamental properties of Bitcoin: resistance to censorship and privacy.

Confidential technology

Lightning Payments also has a high level of privacy regarding how you use them. onion routing. This assembly it does not allow routing nodes to distinguish between the identity of the sender and the final recipient of the payment.

In addition to the obvious privacy benefits, this makes it harder to attack and censor certain nodes.

Lightning, is it centralized?

Although Lightning is technically decentralized, some nodes with high liquidity are topographically well connected. Therefore, they are more involved in the routing of payments. Therefore, there may be implications for privacy and censorship resistance as they simplify network segmentation. concentrators

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However, there are many initiatives to mitigate these problems, such as: exchange between peersa protocol that optimizes the bandwidth of a channel.

Good organic growth

An important (but imperfect) metric used to track lightning growth is public network bandwidth. Theoretically, this shows a greater demand for payment routing in the network.

This ability has more than increased 150% in just five months showing good organic growth. Users who come to the network to make transactions are not attracted short-term return to the new Super Ponzi Do Kwon DeFi protocol. For the uninitiated: Most DeFi projects increase their TVL by raising capital with a return in the form of a token.

The introduction of Bitcoin as a legal tender in Savior played an important role in this growth.

Western Union, tremble!

If the network and Lightning technology tarot cards came to propose stable coinsit could be good International payment transactions are undergoing a real revolution. With exorbitant costs 6.4% who send money overseas could very well send Lightning Western Union to the graveyard.

All the better, I’ve never liked this company with its jaw-dropping tails.

In fact, one of the reasons El Salvador adopted Bitcoin was the large share of transfer income in the country’s economy. winds%!

Major online trading and payment platforms such as Stripes as well as Shopify also announced their intention to integrate Lightning. With lower fees, instant processing, and no chargebacks, Lightning Network payments are likely to become more common.

After the smudges, is it the era of rural micro-jobs in Satoshi?

Giving away small amounts of bitcoins as a reward is another use case for Lightning Network that is becoming more and more popular. Lightning’s near-zero fees allow you to transfer small amounts, lowering your creditworthiness threshold. micro-tasks.

For instance, microlancere is a micro-asset marketplace that allows users to trade small amounts of money at lightning speed to complete tasks such as: Install applications or write articles.

Donating to creators is another use case that is becoming more and more popular.

The most popular example is podcast streaming, where listeners make real-time payments to continue listening to a podcast. Low fees also allow you to tip smaller in real time. Seamless, seamless payments for an authentic and interactive experience.

True DeFi on Bitcoin?

One of the main features of Lightning is that all transactions are conducted on a peer-to-peer basis. In theory, partners can agree on complex financial transactions. go far beyond simple BTC transfers. Along with anonymity, there are privacy benefits that are critical for financial applications.

Emergence of decentralized exchanges?

What submarine exchange is a type of Bitcoin smart contract that allows you to trade BTC in Lightning for other tokens in complete safety. Lightning allows traders to reduce counterparty risk with lower exchange participation through instant conversion.

DLC: the main evolution of Lightning?

DLC (Discreet Log Contracts) is a technology that allows you to enter into private peer-to-peer financial contracts for bitcoin. Third parties cannot even detect the presence of the DLC, which guarantees more privacy than the smart contracts published on the channel.

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The DLC on Lightning is best suited for short-term transactions and is considered an important technology Promising markets and even stablecoins are created.

Decentralize and boost the internet with micropayments

Micropayments in BTC via Lightning can be used to decentralize and repair the network. For example for Payment when using the API.

Using Lightning allows you to shorten payment intervals and receive paid digital certificates.

To avoid this, micropayments can also be used. spam. Since spammers publish large volumes of posts, charging very little for posting comments can greatly reduce the profitability of spam. This mechanism can be effective in reducing spam on social media.

Some communities are already using Lightning micropayments to limit participation in Telegram and Discord rooms to prevent spam, maintain quality, or simply charge subscription fees.

Lightning: a technical response to a social problem

It is time to put the childish optimism of this relationship into perspective. We all see the potential of Lightning to transform the web and payments. It is not a question. However, if we think only in technical terms, we fail to understand why Bitcoin is a monetary nano.

The problem is mainly social. If Bitcoin isn’t replacing the dollar yet, then it’s definitely not due to a technical defect.

People don’t buy what, they buy why. So we can continue to be enthusiastic about the little ones. SOUNDThey spend hours describing Lightning’s very technical results, thinking this will be enough to stir up excitement. but this will not solve the underlying problem.

Bitcoin should first of all be a brand, a religion, a cult, a hope to radically change people’s lives. We often hear that Bitcoin developers are in short supply. This is probably partly true, but more importantly, Bitcoin lacks top-notch marketers, friends, and artists who know how to speak to people’s hearts.

When bitcoin becomes absolutely desirable, developers and venture capitalists will land and in 48 hours we will have the DLC. Even within 24 hours.

Finally, it seems to me that a bitcoin guide is missing. The bitcoin of Steve Jobs or Walt Disney is missing. A person who understands what people want. The Guru who puts us all in a trance.

When the paradigm shift is too great to be entropic, leadership can be sane. We have little time.

Lightning is a very interesting technology for transforming the payment industry and decentralizing part of the internet. But let’s be honest: Lightning doesn’t solve the Bitcoin problem. Mainly a social problem and marketing.

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