Bitcoin Q&A: Lightning and onion routing

lightening networks, run by zeus.

But mining is proof of work based, besides needing high hashrate I believe off chaining second layer solution running hub channels will get governed by KYC and AML regulation and then we are no longer having privacy again, despite still being decentralized but information is power to the governing but privacy is power to the people.

Are hubs like people/exchanges that have lot of bitcoins and connected to different people and can take transaction fees ? And may be charge bitcoins for opening channels with them?

I still kind of wonder why not just simply limit the max channels a node can handle? Otherwise, some nodes will become too big to fail.

Zero commission 🙂

PubKey 036b82fba8acc010cfd65edbe8411dfc13fe1daef58200dcdde99c48c8246fcf5d
Alias cryptobank
URI 036b82fba8acc010cfd65edbe8411dfc13fe1daef58200dcdde99c48c8246fcf5d@35.229.76.168:9735

".. they have a mechanism for automatically managing channels.." Wait, so the LN daemon automatically opens and closes channels? I don't get how this will work since every time a channel is opened or closed, it happens on the blockchain and a fee is paid. How is this done automatically?

You have to use your private key outside the Blockchain. People put two and two together and be careful, bitconnect/Mt Gox. He is finally letting people know the Blockchain idea was a scam form jump: bitcoin Blockchain is not possible; hence, lighting network. Got your Bitcoin?

What happens with private keys when a key is authorized on a channel? Do we sacrifice our private keys for quick, cheap transactional operability? Not sure how that part works but very interested to understand.

How can you trust a transaction whose history you can't trace? Can't malicious transactional senders deceive the good actors on the basis that they can't see the forrest through the trees? Onion routing. What stops a malicious actor from manipulation of nodes? A node with a lot of routes and connections becomes highly attractive hack targets? Is it because if they get hacked everyone using that channel loses money? What level of security can the lightning network be rated from a security auditing agency? Really. What's the best classification of security that the lightning network can be assigned? Best case scenario. I don't believe there are good answers to these questions. But maybe I'm nutso. I hope you all win all the things.

Doesn't sound very efficient to say the least.

Youare a champion

Thank you Jesus Christ !

One of the teams working on LN is a company called Lightning Labs… there is no “Lightning Network Company”

A revolution without dancing is a revolution not worth having.

Hi Andreas. You had explained well how increasing the block size isn't a solution for long term scaling and moreover that it would lead to centralisation. But I have one question. Don't you think that formation of lightning network nodes will lead to an infrastructure similar to the current banking system with permissions required to perform transactions and possibility of future government regulations?

dont understimate btc or u will regret

Since I discovered your work, I'm 20% less efficient in my daily work because I can't stop watching your videos 🙂 I think I'll get sacked. Then again, Bitcoin knowledge, hmmm…

Get Some Sleep Man!

Here you can see the active lightning nodes on the MAINNET! https://lnmainnet.gaben.win/
Also the testnet for those interested: https://explorer.acinq.co/#/
Lightning is coming fast! Also it's already far from centralized! Andreas Antonopolous strongly believes it will stay decentralized (you should check his videos).

that song at the end was bad ass, what was that?

Bloody Brilliant!

Thank you for your time & effort, best regards from Libya.

If you look at the LN testnet graphs, you can already see the hub-and-spoke model forming. Don't tell me it won't happen.

I do share similar concerns others have stated regarding lightening network resembling fractional reserve banking. I would go as far as to say that it is digital fractional reserve banking. Andreas, maybe you could do a video discussing this issue. I’ve seen a lot of talk about it across many crypto communities.

This is stupid. A disruptive technology disrupts. It doesnt beg you to implement some crazy sub network to get your technology to work which nobody is going to care about. Fix the fees. Forget this added complexity or bitcoin is doomed.

The real Bitcoin Jesus!

It seems to me that on the one hand Andreas has been big on the fact that bitcoin is "permission-less" but that payment channels and the "super hubs" that will be necessary will involve us having to get permission. So I'm not sure how Andreas resolves the contradiction..??

Andreas you are one of my heroes

Awesome another great video

Your arguments for why the lightning network won't lead to centralization seem disingenuous at best. dishonest at worst.

On 07.30 min Andreas goes slomo for one second. Also, awesome video and thanks for grate work!

Father, I have sinned and bought some BTC at the top. What have I done???

Such a great explanation! Run Full Lightning Nude!

Off chain settlements of a blockchain? What's the point of having a blockchain? Liquidity hub fractional reserve banking. Plastic surgery on a pig doesn't sound as catchy as lipstick on a pig, but that's what this sounds like to me.

the haters forget that LN won't replace Bitcoin, because it's still Bitcoin! even with full blown LN adoption, you will still be able to send btc directly from wallet to wallet without touching the LNs, if you so wish.

I have query about the size of the channels, I read that the main reason for the hubs is because when routing between nodes the size of the transaction is limited to the balance in the channel between nodes, and that hubs will have large capitol in them to allow large transfers, and its here where centralisation can occur as large companies will have the capitol to fund the hubs and can place restrictions and fee's on people that use them… this I'm my understanding, someone feel free to correct me

Thank you for a yet another informative video, Andreas. In it you address one of the biggest concerns which is the generation of hubs by 'big players with enough money' (read banks/exchanges/other). I understand your points as to why they'd still prefer to divide their belongings in multiple pieces instead of having one massive hub. However, as all of these nodes still belong to them, the outcome remains the same, right? They'll just be generating multiple smaller streams of revenue instead of one huge stream. By the same token they reduce the risk of loosing 100% of the keys at once. Aren't we just shifting the problem elsewhere without really solving it? Thank you in advance.

Well….if Andreas is all in for lightening…so am I, I suppose! (I must defer things I still don't fully understand, to leaders I respect)

I have 20 bucks of btc in a paper wallet, but i can't get it out because Tx fees are too high. Really hope the lightning network hits soon and we can adopt btc for every day purchases.

it's not an onion, it is call a hot potatoe. 😀

hi important question: i heard the lightning network might lead to more centralisation and big hubs forming that will act like banks :-O i would dislike that heavily ok you say the likelyhood is low but is it near 0? because bad things tend to push their will tru

Bitcoin Cash is in for a world of hurt…… Too bad it all had to play out this way, I would have much rather we had made it this far unified.

How do i buy aantonop coin 😉

Thank you Andreas. Please continue to educate people on second layer scaling and please add how it will decouple the price to mining relationship thereby reducing the environmental problem.

Good to see your video after ages. Keep peeping us up.