Developers move on the Lighting Network
A new proof of concept website has now been created for the Bitcoin lightning Network, that will enable small-scale payments to be executed instantaneously. The Lighting Network was showcased at the premier of the bitcoin conference in Baltic Honeybadger 2018 in Lativia.
The Lighting tasks will be able to make individuals earn small amounts of bitcoins by completing a few simple tasks. Users of the Lightning Network can now generate satoshi’s through the simple means of doing tasks. It is one of the most anticipated features of the Bitcoin Network that will be implemented. Currently, there are some people that find the use of cryptocurriencies still clunky when it comes to performing a transaction on the Blockchain. This is one of the reasons for the developement of the Lightning Network for Bitcoin, as it will also allow and facilitate micro transctions. The proof-of-work consensus mechanism was also a strong point for the development of the Lightning Network, in order to fix the issues that arise from the technol0gy.
The Lightning Network started with a successful beta release, that went live on the bitcoin testnet, to evolve into a full-fledged scaling solution that will be operated on the bitcoin mainnet. The projects is still quiet young in its development phase, however, and is not ready to handle any critical high-value transcations. There are many people that are currently testing it for microtransactions.
Until now the network has been solely focused on the theoretical applications of the Lightning Network tasks. These are tasks like games that an individual can complete in order to earn bitcoins in small units called satoshi’s. There had been websites and app’s that have already been using this concept, but not together with the Lightning Networks capabilities. As the value of each satoshi increases over time, an individual will see theses tasks becoming more effective in earning bitcoins. Howeve,r because of the concept stage of the network the quantity of satoshi’s are fixed at 1000. At the current price these 1000 satoshi’s would amount to six cents, which will become much more significant as the price of each individual satoshi becomes more valuable overtime. At the moment tasks on the network are very easy and simple in order to monitor the process of the network.
The usability of the Lighting Network
The Network uses the principle of payment channels in order to execute transactions throughout the network. There is also a built-in bitcoin script in order to create a multi-party smart contract on the bitcoin blockchain. If any two parties wish to transact with each other there will be funds that will be set into a multisignature wallet. After the creation of the wallet, all information like addresses is then stored and logged on the Bitcoin Blockchain, which is the normal process of creating a channel on the Lightning Network.
This makes it possible for the two parties to start making subsequent transactions with the funds that are stored in the wallets. The multisig featured enables each participant to agree up on the state of their new respective balances. The Lightning Network will only store the last transaction balance after all transitions have been done, as the first and last transactions are the most important in order to verify a transaction validity. Throughout the process, there is no need for communication with the Bitcoin Blockchain.
The adoption of the lighting network to cryptocurrencies
Because the technology is still new the widespread support for it is far from being used on a daily basis, The proof of concept has allowed developers to demonstrate the raw potential in scalability of the Bitcoin Blockchain. The nertwork went live back in December of 2017, the network has since then developed to more than 3557 nodes additionally. There are about 2600 nodes that are really public. Currently, there are more than 12000 open channels with a total network capacity of around 112.50 BTC’s.
Some merchants have decided to add early support for the network because of this success. There has recently been annoucement of a cafe called energyKitchen that has begon payments of their customers to pay for the menu via the bitcoin Lightning Network. The collaboration was based on initiative taken by Oliver Gugger, energyKitchen and Swiss company Puzzle ITC.
Users can download a wallet in order to start any transction at energyKitchen, there was also a full tutorial that was published by the developers for Puzzle ITC. After this Gugger tweeted that:
“Until all wallets start supporting the lightning natively – you need a lightning wallet like eclair from (ACINQ). No on chain payments are accepted.”
There was also a showcase of the Lightning Technology at the Baltic Honeybadger conference which is an essential part of the adoption of the technology in bitcoin financial transactions. The concept is fundamentally build on the same premise as the website servcie called Earn.com, this platform allows for the earning of bitcoins through activities like replying to emails and the completion of tasks. The user then withdraws the rewards to a personal wallet or can be donated to charities, the company had this to say about the company in a medium post:
“You can also use the prices of inbound emails as a signal to rank them by importance. And you know immediately what the sender wants from you in a reply, as they’ve made their payment conditional on the completion of very specific tasks. hundreds of thousands of users have earned digital currency with Earn.com so far, earning millions of dollars in their free time.”
The Lightning Network is in very early stages but is already showing tremendous capabilities as to what the Bitcoin Blockchain Network is capable of with microtranstions. Even at the 1000 satoshi limit, it is easy to see how it can dsisplace popular and traditional freelance platforms such as Upwork and Fiverr, as these websites charge a commission of 20 cents on earings.
What do you think of the developments of the Lightning Network? Please feel free to leave a comment down below.