With bitcoin’s popularity soaring, the bitcoin system has been straining to handle the load. Two bitcoin-obsessed engineers, Poon and Dryja met and discussed the central problem of bitcoin. They are trying to make bitcoin more useful.
It turns out that the bitcoin network’s design effectively limits it to handling three to seven transactions per second, compared with tens of thousands per second for Visa. That causes high fee with long transaction time while bitcoin has been famous for instant and free payment all over the world.
Therefore, Poon and Dryja recognized that for bitcoin to reach its full potential, it needed a major fix.
They met in unofficial coworking spaces on weekends to describe and record their vision in 2o14. After 6 months, they revealed their work, the Lightning Network. It is a system that can be grafted onto a cryptocurrency’s blockchain. Its core idea is that most payments need not be recorded in bitcoin’s ledger. Instead, they can take place in private channels between users.
Poon and Dryja believed that bitcoin could support much more transactions and make them almost-instant, reliable and cheap with the Lightning Network system. At the same time, it still remains the free of banks and other institutions. Their paper has been spread and the blockchain enthusiasts started hashing out its technical details in blogs and on social media. Worldwide engineers started trying to turn their idea into working code.
Now the Lightning Network is coming to life after almost three years Poon and Dryja shared the idea. The isolated groups worked together and released a “1.0” version. This version has hosted its first successful payments, with developers spending bitcoin to purchase articles on Y’alls.
The Lightning Network’s builders seek to move the bulk of everyday payments to private channels and use the blockchain as a secure fallback, to ensure honest commerce. Bitcoin-obsessed engineers, miners and investors always are working on making bitcoin faster and cheaper.
Published by & last updated on January 23, 2018 2:34 am