Taylor Taua

#Bitcoin Q&A: Misconceptions about Lightning Network


What are some misconceptions about the Lightning Network? How does the onion-routing work? How does channel funding work? Are there any security or legal risks to running a Lightning node? How far is the development so far in making this technology user-friendly?

This is not a choice between on-chain and off-chain. A large portion of transaction volume has already been conducted off-chain (i.e. within the private databases of exchanges) for years; what second-layer solutions like the Lightning Network do is to allow for similar low-cost activity without sacrificing most of the security model and trustless nature of Bitcoin. Decentralisation is not a Boolean value, it is a range.

The Lightning Network is not only about payment channels, there is also routing between the payment channels of others. You do not need to open a channel with every party you want to transact with. If a merchant does open a channel, they do not have to close the channel in order to be paid.

LN Development Resources:
http://dev.lightning.community/
LND Desktop Wallet -
https://github.com/lightninglabs/ligh...
ACINQ's Lightning implementation:
https://github.com/ACINQ/eclair
Blockstream's C-Lightning implementation:
https://github.com/ElementsProject/li...
Zap, another Lightning wallet:
http://zap.jackmallers.com/

More on contributors:
http://lightning.community/release/so...

The first question is from the patron-only live Q&A which took place on December 16th 2017. The second question is from the patron-only live Q&A which took place on January 27th 2018. If you want early-access to talks and a chance to participate in the monthly live Q&As with Andreas, become a patron:
https://www.patreon.com/aantonop

RELATED:
The Lightning Network [playlist]
https://www.youtube.com/playlist?list...
Bitcoin, Lightning, and Streaming Money -
https://youtu.be/gF_ZQ_eijPs
Advanced Bitcoin Scripting: Part 1 -
https://youtu.be/8FeAXjkmDcQ
Advanced Bitcoin Scripting: Part 2 -
https://youtu.be/pQbeBduVQ4I
Decentralised exchanges and counterparty risk -
https://youtu.be/hi_jaw0dT9M
Scaling complex systems -
https://youtu.be/dm9m1oQr6Ks
MimbleWimble and Schnorr signatures -
https://youtu.be/qloq75ekxv0
SegWit adoption -
https://youtu.be/KCsTVTRk6I4

Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin.

Follow on Twitter: @aantonop
https://twitter.com/aantonop
Website:
https://antonopoulos.com/

He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.

THE INTERNET OF MONEY, v1:
https://www.amazon.co.uk/Internet-Mon...

[NEW] THE INTERNET OF MONEY, v2:
https://www.amazon.com/Internet-Money...

MASTERING BITCOIN:
https://www.amazon.co.uk/Mastering-Bi...

[NEW] MASTERING BITCOIN, 2nd Edition:
https://www.amazon.com/Mastering-Bitc...

Subscribe to the channel to learn more about Bitcoin & open blockchains!

Music: "Unbounded" by Orfan (
https://www.facebook.com/Orfan/)
Outro Graphics: Phneep (
http://www.phneep.com/)
Outro Art: Rock Barcellos (
http://www.rockincomics.com.br/)

No comments