Lightning Network
by Krzysztof Szumny - part 1
Introduction to
PWR →Opera Software →SpisTresci.pl→STX Next
→UserFeeds.io
krzysztof.szumny@gmail.com
http://steemit.com/@noisy
How To Build Own Lightning Network in Few "Easy" Steps
- few pieces of paper
- table
- crazy friend/partner/spouse
- some time
Why Lightning Network is Needed?
"Bitcoin doesn't scale"
7 billion people doing 2 blockchain transaction per day
- 24 GB blocks
- 3.5 TB/day
- 1.27 PB/year
Bigger blocks = Centralization
- Very few full nodes
- Very few miners
- De facto inability to validate blockchain
Building Blocks
- simple transactions
- multisig adresses
- time lock
- hash values and secrets
Simple Transactions
Alice
10
Bob
Alice
10
Bob Signature
Bob
10
Bob
Carol
1
Carol Signature
David
9
David Signature
Alice Bob
Alice Bob
Alice Sig. Bob Sig.
Text
5
5
Bob
Alice
Alice
5
Carol
Multisig
Carol Signature
Timelock
Alice
10
Alice
10
Alice
10
Alice Signature
+1000 blocks
Bob
10
Bob Signature
Hash values and secrets
Alice
10
Alice
10
Alice
10
Alice Signature
hash(secret)
Bob
10
Bob Signature
Alice
secret
Transaction types can be combined
Bitcoin - programmable money
Alice Bob
10
Bob
Alice
Alice
6
Bob
Bob Signature
Alice Bob
4
Bob Signature
hash(alice_secret)
Alice Signature
+1000 blocks
Overview
Overview
Alice Bob
10
Bob
Alice
Alice
6
Bob
Bob Signature
Alice Bob
4
Bob Signature
hash(alice_secret_2)
Alice Signature
+1000 blocks
Alice Bob
Alice Bob
4
Alice
Alice
Alice Signature
4
+1000 blocks
4
4
Bob
Bob Signature
alice_secret_1
Bob
Bob Signature
Alice Signature
Bob
Links & Credits
- https://bitcoinmagazine.com/articles/understanding-the-lightning-network-part-building-a-bidirectional-payment-channel-1464710791/
- http://lightning.network/
- https://github.com/lightningnetwork
- https://slides.com/noisy/lightning-network/