crypto strategy

Can Bitcoin’s Lightning Network overcome the price of anarchy?

This is an opinion piece by Shinobi, a self-taught educator in the Bitcoin space and tech-oriented Bitcoin podcast host.

The Lightning Network as a payment routing network has many similarities to the Internet itself. You must be connected to the network, payments are routed from a source node on the network to a destination node just like data packets on the internet and this requires an uninterrupted connection from source to destination. It also has a huge difference – the liquidity requirement. On the Internet, as long as bandwidth is available (i.e. the pipes are not “clogged”), you can pass an infinite amount of information along a route as long as you have enough time to wait for them to pass. Lightning channels, however, can run out, as they actually require moving money from one side of a channel to another in order to route a payment, and eventually they will run out of money on one side. and push it all the other way.


#Bitcoins #Lightning #Network #overcome #price #anarchy #crypto strategy

Related Articles

Back to top button