The Lightning Network as Bitcoin’s proof-of-stake. It represents an opportunity for users who want to run full nodes. It requires the committed expenditure of resources and right now not enough people are willing to do that without getting paid. More people would do it if they could participate in Lightning and earn fees. ‘You would think that a group of miners that run fully validating nodes would want to become hubs. But it requires more maintenance, administration, and upgrades than they’re used to. There is a culture divide between software and hardware.
This is part of a talk which took place on March 20th 2017 at the Singapore Management University for the Singapore Bitcoin & Ethereum meetups: https://www.meetup.com/BitcoinSingapore/events/237307480/
RELATED:
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.
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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
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So let's review what he just said:
People are going to run full nodes, validate transactions and be compensated for BOTH by putting up collateral on a Lightening Network, an equivalent of Proof of Stake. But will who validates your transaction be random? No. It will be trusted. Will there be protocol level security for double-spends to be discarded? NO. There's a dozen questions that poke holes in this approach to "Fast Transactions" and Lightening Network will have to answer the SAME issues that Proof of Stake has. It begs the question – WHY NOT decentralize this process in a secure method integrated INTO Bitcoin Protocol, not a "side protocol"?
There's a Cryptocurrency that has taken Bitcoin Core and IS DOING THIS on a Protocol Main-Net Level – everyone who runs full nodes also has authority to be a Validator, and the Validation is Random amongst ALL nodes based on "Bitcoin" stored in Nodes. (much more secure than Lightening Networks). Add to that, they created a layer of Nodes with larger amount of collateral that Instantly Verify Transactions – and are used for Double Random Validation of each Block. This answers the security issues of Lightening Network, while ON CHAIN creating a totally decentralized, far more secure, Protocol Level way of running Bitcoin equivalent of Lightening Network, but doing it AS Bitcoin, not on a side chain.
Why not incorporate Lightening Network on a Protocol Level?
This is what PIVX IS DOING. It's doing what Bitcoin pretends to do in the future with Lightening, but on a Protocol, much more secure, and totally decentralized method.
Hey everybody and Andreas. i don't quite understand what's a lightning or a full node, could anyone explain a little?
I always take something away from Andreas's videos. Always insightful. I honestly hadn't thought about miners resisting moving into software.
Instead of commenting on YouTube I ought to set up a full node. 🙂 🙁 :-/
Plus one for Dash
Andreas what do You think about changing PoW to e.g. CPU only PoW ? Isn;t be better for all ecosystem ?