1. The Lightning Network’s trustless anonymity 0:00
Assignment of claims, a series of IOUs / forward-looking promises. You don’t have to trust any of the partcipants in between, and if it’s implemented properly you have no idea who the other participants are. Onion routing like Tor, i.e. one-hop information, with encrypted connections, with no idea if a person started the transaction or is relaying it from someone else, or if the person you’re sending it to is the end or another relay. Increases for privacy and anonymity.

2. Smart contracts using multisignatures, opcodes, hashed timelock contracts (HTLC) 1:58

3. Incentives for intermediaries 2:34
Participating in the network, collecting very small fees. Routing to give the lowest fee or lowest latency. Transaction fees will be on a different scale: close to the marginal cost of delivering that service. Anyone charging high fees will be pushed out of the market.

4. If you use a less costly route with more hops, won’t that introduce more settlement costs on the blockchain? 4:24
No. By adding more hops, you’re cancelling out bilateral obligations for parties involved in the hops. It will reduce settlements on the blockchain.

5. Effect on on-chain transaction fees for miners & decentralisation 5:03
Anchor and settlement transactions. This doesn’t change that Bitcoin Core layer will need to be scaled – we’ll do scaling on both.

6. Will the Lightning Network be compatible with BU? 6:36
That is up to them to decide. SegWit. You can also run the Lightning Network on top of Ethereum, or any cryptocurrency that enables the checking of hashes, multisgnature contracts, and time-based controls.

This is part of a keynote talk which took place on October 19th 2016 during the Bitcoin Wednesday Meetup at the Eye Film Museum in Amsterdam, Netherlands: https://www.meetup.com/BitcoinWednesday/events/234498117/

Event Info: http://www.bitcoinwednesday.com/event/special-edition-19-october-2016/

Presentation Info: http://www.bitcoinwednesday.com/antonopoulos-bitcoin-incubator-black-swans/

RELATED:
Lightning, full nodes, and miners – https://youtu.be/dlJG4OHdJzs
Does the Lightning Network have proof-of-stake elements? – https://youtu.be/GOYP4O4yetQ
Bitcoin, Lightning, and Streaming Money – https://youtu.be/gF_ZQ_eijPs
The Lightning Network & Rootstock – https://youtu.be/jUhe7J6-aG0

Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-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-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8

MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042

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Videography: Bitcoin Wednesday
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/)

source

19 COMMENTS

  1. So Andreas, Is it true that BANKERS are apart of the decision making for the Lightning Network? I am having trouble with This. You have always spoken about keeping the BANKERS out! But now you are promoting it! You have lost all respect. I had a friend who sold himself out and he regretted it the rest of his life!

  2. Andreas, please comment on the prediction going around that LN will lead to the emergence of hubs that will be vulnerable to state/corporate control.

  3. so, if i understand this correctly, LN will allow us to scale the number of transactions by scaling up payment channels. But when a payment channel is closed, it must post to the blockchain, right? And thus the number of channels that can close is limited. If a large number of channels need to close at a single point in time, won't this degrade back to the original scaling issue of the bitcoin blockchain?

  4. Nice video , i have a question : As I understand payment-channels, like the lightning network, they are working off chain (no record in the blockchain). The only record to the blockchain is the deposit transaction to open the payment-channel and by closing the payment channel. But later all the transactions inside the payment-channel running on centralized servers, like traditional bank transfers. This is very fast, and could be very cheap if there is competition. But how the banks, who would run such payment-channels can secure that inside the payment-channel the transactions are not hacked and safe? And how the bank guarantee the customers that they dont double spend the funds if inside the channel all transaction are totally anonymous?

  5. Eu estava pensando em aceitar bitcoins em negócios, mas o que mais me
    deixa com um pé atrás é o fato de que eu posso perder dinheiro muito
    facilmente com as variações de cotação. Dai para proteger esses negócios
    tive uma ideia e com isso surgiu a seguinte dúvida:
    Existe algum software que auto regule os preços de produtos em loja
    virtual mediante cotação atual de determinada moeda virtual ou oficial
    (em tempo real de preferência)?

  6. The only way Segwit can be saved is if miners get a piece of the pie from Lightning settlements. They don't support it right now because they are being sidelined. However if Lightning implements a hardcoded policy of sharing a percentage of fees from its nodes with miners when transactions settle on the main chain they will all switch and this debate will be over. This is so evident I have no idea why they haven’t done it yet…

  7. LOL…Hm? What… sometimes I feel a little dumb listening to this young man.. however.. I AM accumulating Bitcoins…and ..that is all I need, at this time…blessings to you..

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