The scalable commercialization of lightning network achievable?
"Lightning Network: Hello, TPS" was debut broadcast on March 7,live on the Jinse Finance online seminar.
On this topic, we are honored to invite our guests -the CMO of BiXin, Xiong Yue; the founder of BiYin, Pan Zhibiao; CSO of BlockStream, Miao Yongquan (Samson Mow);cofounder of the Litecoin Foundation, Franklyn Richards, together with the founder of Bither Wallet, Wen Hao to share their wisdom with our audience.
Lightning network guarantees mainnet decentralization
Tong Yang: Let me introduce you to the first guest today. Xiong Yue, CMO of BiXin, is an early visionary of Bitcoin , a senior practitioner and industry insider, an Austrian economist who adopts the faith of liberalism. As the disciple of the world-renowned economist Jesús Huerta de Soto, Mr. Xiong has translated volumes of economic monographs and publicly claimed a Bitcoin believer. Since 2012, he has invested in blockchain industry and popularized Bitcoin knowledge.
Tong Yang: The first question I raise today regards to the decentralization of lighting network. It is known that bitcoin is trusted and functions as users value privacy and security blockchain brings about. With lightning network, is decentralization of blockchain centralized to some extent to the formation of one-by-one centers? If this leads to Big Mac node eventually, what impact might such centralization wield on the Bitcoin ecosystem? And how should we deal with the risks?
Xiong Yue: The only choice of Bitcoin is to maintain the main chain robustness and fundamentally solve inherent capacity problem with the second layer network such as Lightning Network.Simple block expansion unavails.
As Bitcoin is destined to be vulnerable to adverse attacks, It is critical to maintain security and decentralization, where the significance of lightning network lies-as lightening network ensures the decentralization of the main chain. The Lightning Network nodes form a sheer free market where anyone can enter and exit freely. Consequently, free competition leads to market professionalsim,just as we have McDonald's in the catering industry. However, there must be other competitors in the market, and users will always have the choice. Let me make the analogy between this situation to the mining pool competition. Of course, larger mining pools will emerge. However, we will see the large mining pools proportional drop and new mining pool emergence in the few years. Thus I don't think there will be a massive node. Back to the example of McDonald's , you might think that McDonald's is a business giant, actually it accounts for a tiny percentage in the entire catering industry. Finally, I add that decentralization doesn't equal egalitarianism.
Tong Yang: I share the claim that decentralization is not egalitarian.
Xiong Yue: There is picture popular on the Internet, illustrating decentralization in the middle phase, which resembles current lightning network state.
Tong Yang：my second question is on one hand, the entry barrier of lightning network is high，on the other, the commission of lightening network extremely low, which leads to the incentive lack of lightening nertwork operation and currently the major operators are bitcoin enthusiasts. What’s your thinking on the dilemma and can you explain the scarcity of lightening networks nodes in china?
Xiong Yue: Here I want to share the view of a KOL account Bitcoin Sniper on Weibo.He holds that the high industry threshold exists only in relatively early phase. As long as users' demand doesn't taper off, gradually there will be threshold lowering by market force. You can compare it to early computer installations, now we have one-click system installation. You can also see the trend in the e-wallets evolvement where the early bitcoin mining and wallet thresholds are similarly high, wheras with more and more users and miners , now we have much more user-friendly wallets, mnemonics, professional mining machines and even mandatory mining. I have friends providing this service, so we dont necessarily need to worry about the threshold. User demand and economic benefits will drive user-friendly products into the market. Bitcoin hardcore enthusiasts, technology pioneers and industry companies will undoubtedly maintain their own lightning network nodes.
Tong Yang: My third question is: What do you think of the recent Lightening Torch Relay? If the lightning network application is about the realization of Bitcoin as daily payment. What’s your opinions on corresponding compliance issues especially in the current domestic conditions?
Xiong Yue: The lightning torch relay has been popular lately and has diversified to various versions.Not an avid twitter user, I partook in the domestic version initiated on Weibo. I think the significance is about propaganda. Let everyone know the lightning network. It is already functional,available, instead of a white paper protype. In fact, Bitcoin also went through similar stage in the early development phase. Enthusiasts participated in numerous bitcoin shows on Weibo, and I myself used Bitcoin to trade books and T-shirts.
Xiong Yue: To share another perspective from weibo KOL sniper's: In the same months when the lightning network is in full momentum, Bitcoin's main chain trading volume is close to a new record high, which shows the condusive role lightning network plays, contrary to snatching the main chain trading wolume or reducing miners’ income, the lightning network increases the small amount bitcoin transaction speed, rather than using bitcoin as payment method. The domestic policy should be banning bitcoin as payment. But as everyone does well, there will be many future application scenarios.
Tong Yang: This is really a huge chasm as I am expecting that Bitcoin as online and everyday payment. For those bitcoin holders, its convenient to skip the troublesome currency exchange and enjoy direct shopping.
Xiong Yue: For example, cross-border payment, rewards, and video streaming are paid by seconds. What you have expected is now technically feasible, but banned in policy. The exploration of cryptocurrencies is a zigzag road, it is not fully in shape.
Tong Yang:Thanks to Mr.Xiong for sharing with us his insights.
Lightning network popularization in onchain+ independent node pattern.
Tong Yang: Our next guest is Pan Zhibiao,the founder of BiYin, who's a bitcoin enthusiast, as well as a well-known Chinese technologist in bitcoin industry who delved deep into bitcoin source code technology. Mr. Pan currently holds one of the 19 lightning network nodes in China.
Tong Yang: There are industry opinions that with the emergence of lightning network, many chain transaction data will turn off-chain. This will inevitably not only reduce miners' income, but also affect the ecology of the chain to a larger extent. What is your opinion? What do you think of the impact on miners, mining pools and chain ecology with the emergence and application of Lightning Network will bring about?
Pan Zhibiao: It will not lead to the so-called "chain trading data chunk turns to off chain." With the advent of the lightning network, assuming its application will bloom, there will be an entirely new trading market. Onchain trading will be dominated by higher value transactions, whereas comparatively lower value transactions dwell on lightning networks, and this is a colossal incremental market. The miners' incomes come mainly from chain transaction fees, and the prosperity of the lightning network will promote chain transaction, thus greatly promote the miners' income. As for your second question, the definition of the chain ecosystem is unclearly broad. The fee increase on the chain transaction is of course beneficial to certain parts of the chain, but does no good to other parts. It is impossible to summarize the overall impact. For example, USDT is a token based on Bitcoin. The fee increase means that the transaction cost is elevated, liquidity may be suppressed, small amount transaction nullified, and consequently users can only transfer through wallets such as off chain. However, for miners, it is beneficial to have prosperous fee market with higher income, bigger computing power and safer POW network.
Tong Yang: The second problem is that although the lightning network is basically able to realize instant payment, a major public concern is that the lightning network may be concentrated in some big nodes, thus affecting the anti-censorship, stability and other aspects of transactions. Will this concern make some realistic sense? What's your vision of the evolution and application of lightning network?
Pan Zhibiao: Lightning network is a network connecting various nodes, which can't function simply on a few big nodes. Lightning network nodes are distributed in the entire network, some nodes are personal, some belong to enterprises. Some large with tens of thousands of channels; some may be small, having only several channels. The threshold of the lightning network nodes are relatively low, as any software engineer can quickly establish a node, and ordinary users employing technical tools can quickly set up nodes as well. As long as the market is open and with free competition, the network basically maintains decentralization. Regarding to anti-censorship, due to the flow through N nodes, lightening network privacy is much better than direct bitcoin transactions, the majority of which is KYC-censored, rendering little privacy of onchain transactions. In terms of privacy, the lightning network is applaudable.
To talk about the evolution path and application prospects, you must refer to mainly the payment field. At present, it is still dominated by Independent nodes. Most of the current lightning network wallets are not real wallets. The direction of lightning networks popularization is still in the pattern of onchain+ independent nodes.
Tong Yang: Do you think lightning network be popularized and will achieve scalable commercialization?And what are the prerequisites to achieve this?In comparison with daily payment such as Alipay, WeChat, what is the competitive advantage of lightning network as everyday payment?
Pan Zhibiao: The lightning network development is still experimental. Cool experiments, but I dare not assert that it will be popularized and turn into large-scale commercialization. This is the current scientific exploration frontier, and there is no better technology than the lightning network. The prerequisites for popularization is the threshold lowering of setting up the operating nodes, and the commercial explosion depends on the profitability of the operating nodes. If the low-threshold, low-cost yet profitable operating nodes and economic incentives become achievable, then a large number of nodes will emerge, creating a network with excellent mobility. At present,it is hard to compete with Alipay and WeChat, and there is no need to compete with mature payment in current market. The lightning network will cultivate a new incremental market, albeit a collosal one, where there are no KYC, no country differences, no restrictions, where funds are completely controlled by individuals, free to flow in the market 7/24. I believe it will be an efficient and prosperous payment market. And it is undoubtedly a highly effecient, prosperous one.
To become the mainstream payment.
Tong Yang: Let me introduce our third guest, Samson Mow, the chief strategy officer of Blockstream. As a well-known contributor in the Bitcoin community, he advocates decentralization and supports prioritizing security in protocol development. Blockstream is a global leader in bitcoin blockchain infrastructure. Prior to joining Blockstream, Samson was the chief operating officer of BTCC, one of the world's largest digital currency exchange and one of the largest mining pools. Responsible for the two major businesses-the mining pool and the exchange, Samson also took charge of corporate operations, product development and marketing.
Samson Mow: Hello, everyone, I am Samson from Blockstream. I am happy to have the discussion today of the lightning network with everyone.
Tong Yang: Back In May 2017, Blockstream accomplished the first completely secure lightning payment in a non-test Litecoin network, which was regarded as a milestone in the deployment of Blockstream Lightning. After a year and a half, what progress has been achieved in the lightning network development? Are there any events considered milestones by Blockstream?
Samson Mow: The Blockstream store launch is a milestone. It is the first online store in the world that only accepts lightning network payments. The first few lightning network channels are set up to emit and recieve payments. At the embryo phase of the lightning network topology, our lightning network nodes were connected to most of the early users. Since then, the reliability, security, and routableness of lightning network payments have improved dramatically. All three major lightning network installations have entered the beta phase, with development speed increasing each day. Now thousands of lightning network channels are available, and the operation capacity of the entire network amounts up to millions of dollars worth of bitcoin.
Tong Yang: Lightning Network has become a hot topic recently. What is its actual development and application? Does the progress meets with your team's expections? What are the foreseeable progress in 2019? What are the bottlenecks encountered currently?
Samson Mow: Lightning network is developing rapidly, attracting numbers of developers.As an unprecedented technology which will pave the way for Bitcoin globalization, Lightning network development teams are always quick to introduce up-to-date codes and features. In 2019, we will launch a better Lightning Network version, providing faster, more secure trading services with a user-friendly interface. The only bottleneck we encountered was due to the different developmental progress of various teams, therefore, we have some minor compatibility issues which can be solved swiftly. It’s rumored that the lightning network will inundate many altcoins, especially for altcoins such as Bashashand whose propaganda focuses on cheap and quick transactions.
Tong Yang: My third question is that there is a saying that“a layer of code, a layer of risks”.Do you think the current lightning network is safe enough? For small payments, speed and convenience are main concerns for everyone. Do you think lightning network has the potential of becoming the mainstream micropayment?
Samson Mow: I think one layer of code actually builds one more layer of security. Similar to the Internet development, Bitcoin is also layer by layer.
Samson Mow: The Internet has five layers, namely the physical layer, link layer, network layer, transport layer and application layer. The opinion you heard refers to the application layer. In the first tier of Bitcoin where the miners conduct mining, the transaction is generally confirmed within 10 minutes. On the second layer of Bitcoin dwells on a lightning network and sidechains, such as the Liquid network. Development on Tier 1 must be done with care, as a slight carelessness could ruin the entire network. If Bitcoin network errors on the first layer, the consequences are unimaginable. On the second layer, we can innovate and upgrade much faster.And the problems on the second layer wont impact so much as long as the first layer remain intact. The ingenious design of the lightning network includes an error insurance, garaunteeing that code problem causes no major asset loss. Better and safer designs enable quicker and easier installations, with no need of public consensus on code changes. We already have launched some prospects to greatly increase the availability and secure lightning networks which will be available soon.
Samson Mow: I am confident that Lightning Network will become the mainstream payment method, not essentially a micropayment, but a daily one. The two most critical factors are 1) you still trade in bitcoin, 2) except for inherent inconveniences(such as the block time and transaction costs) of the Bitcoin transaction. The lightning network will usher in the so-called "Circular Economy", in which employers can pay employees in bitcoins on lightning network , and employees can spend Bitcoin as easily as with cash. As Lightning network continues to deliver a better version, anyone with a smartphone can send and receive Bitcoin in anytime from anywhere. In the end, all mobile wallets will transform into lightning network wallets, relieving users from the consideration of whether to conduct chain transactions or conduct lightning network transactions. Just as you can chat whenever you log on chating app on mobile phone, you can start chatting right away. As long as your mobile phone stays connected,no extra work is required, unlike when I was young, I need to dial up first.
Stable value despite of unstable cryptocurrency
Tong Yang: The next guest from the UK - Franklyn Richards. cofounder of the Litecoin Foundation, aslo CEO of Litecoin Haus.
Franklyn began his research in cryptocurrencies and blockchains in 2013. Since then, he has accumulated impressive educational resources, and began to provide private consultation. He spoke at the conferences including WebSummit, CVVC, ChainPlus, Future Blockchain Summit, etc., introducing blockchain technology, and covering topics including products, future development and investment & business scope, and broader utilities. In 2016, Franklyn helped establish the Litecoin Foundation. In 2018, he took over the operation of Litecoin.com and helped the Swiss blockchain company Zulu Republic with Litecoin product development.
Tong Yang: Litecoin has been applied relatively early on the lightning network. What aspects of application have been explored? Can you share with us the future layout of lightning network?
Franklyn Richards：The Litecoin team has been prioritize on the stability and sustainability issues of the Litecoin network, followed by a focus on Lightning Network and two other options. We keep relatively low-key profile, because we are here in cryptocurrency in a marathon long run. We hope that these networks will continually create value for users in 1000 years.And we see synergies between Bitcoin and Litecoin, as both benefit from driving change and large-scale application promotions. Like the case of segwit, Litecoin follows the same suit in the privacy transaction and the MimbleWimble protocol. As long as continunual development of the core network unharmed, we are willing to conduct other technical researches such as lightning network. If successful, it will be very beneficial to the whole industry. Problems in Layer 1 development can cause irreparable damage, and everything may need to be started all over again, which also exemplifies the value of the sidechain and Layer 2, although less secure than UX/UI.
Tong Yang: In the view of the Litecoin team, the cryptocurrency as payment market is huge, but there are differences in payment needs in different regions of the world. Can you summarize the similarities and regional differences between markets?
Franklyn Richards : We have seen many activities in the United States, Europe and other places. In UK, cryptocurrencies are primarily used for investment, although some are pushing for the currency usage of crypto assets. But I think it's better to be realistic rather than too idealistic. There are more and more available payment options. I once worked on a project called LITE.im, which enables people to transfer and receive Bitcoin and Litecoin on social media and SMS networks. I believe that when we gradually shift from sheer investment to application, these tools will become more valuable. I believe that in the future, machines can communicate with each other, and Bitcoin and Litecoin can be transfered through lightning technology, because these cryptocurrencies are more suitable as programmable currencies. But at present, cryptocurrency are mainly used as investment, or used as large sum cross-border payment method to save fees.
Tong Yang: We have noticed similar prompts on Lightning Network application, such as "Lightning network is now experimental, please be cautious to use only a few bitcoins". Can you explain the potential risks of the current lightning network? Is it secure to pay in the lightning network?
Franklyn Richards：There is a certain risk of losing money, but situation is improving now. I can’t ascertain when and where this will happen, but due diligence is a must. Lightning networks are 100% run by users, just like users running their own nodes or holding their own private keys. If something goes wrong, the responsibility is yours. This is beneficial for independence , but not suitable for everyone. I believe that we will see that service institutions adopt lightning technology, but this requires trust. Some people will say that this is going backwards, but I remain neutral. It is historically logical that We have banks and other institutions, which shoulder the fiduciary responsibilities most people don't want to bear for their own funds for fear of potential loss. When some people think that this may lose all of them, they will choose not to do this. We are talking about layer 2 and layer 1, but I think we need to understand layer 0, a social environment on which blockchain infrastructure depends. To maximize user benefits and bestow them the option rights. We never force on change. Certainly It is ideal for an existing networks to upgrade to a lightning network with the application of bech32/segwit to save capacity and costs, but we will not force them to do so, and we will negotiate together and collaborate.
Tong Yang: The price of cryptocurrency fluctuates violently, and for ordinary merchants, the primary concern for currency payment should be stability to ensure holder interests. As lightning network supports the cryptocurrency payment system, how to deal with the impact of price changes, in order to realize scalable commercialization?
Franklyn Richards: this focuses on investment and payment issues. it is unnecessary for customers to fully understand the encryption technology when using the application. We don't care how to pay as we already pay for things through various methods.Lightning network can achieve inter-network interaction, and I see the future development of cryptocurrencies become similar, and the transformation is completely done behind the scenes. Institutions will use cryptocurrencies because they are cheaper, faster, and programmable. We can already see that Bakkt, Nasdaq, and fidelity have joined the cryptocurrency competition. Even if the cryptocurrency is unstable, users can still obtain stable value. I think another focus is on the nodes, which likely to be embedded in a lot of things, and the network will be further developed and decentralized. The external infrastructure is under construction and the Lightning Network is just one part of it.
Tong Yang: I am very grateful to Franklyn for answering my questions. I hope that we can meet again in the future and further discuss about Litecoin.
Application scenario expansions of Bitcoin as payment.
Tong Yang: The next guest is Wen Hao, the founder of Bico Wallet, also the developer of the Bither wallet. Graduated from Computer Science department of Beihang University, he provided many years of technical services in National Sports Lottery Center and took charge of a team to design and develop a lottery sales and management system. After entering the field of bitcoin and blockchain, he led the team to develop the“Bita Wallet”, the only wallet in China recommended by Bitcoin.org. Mr Wen then developed a multi-block chain asset wallet “bither” that can easily be used by newbies, as well as a hardware wallet "bit shield", etc. Mr. Wen enjoys a good reputation in the industry of blockchain .
Tong Yang: The main application scenario of Lightning Network is in payment, which will promote currency circulation. Therefore, if the lightning network blooms, it will increase the liquidity in the Bitcoin economy. What is its impact on Bitcoin and cryptocurrency?
Wen Hao: First of all, I lay the background of my speech. When I first discussed the lightning network technology with Auntie and Dongshu three years ago, we had a consensus, namely the "Lightning Network White Paper", which is an extremely important document in the currency world next to the white paper of Nakamoto. The lightning network can have a huge impact on bitcoin and cryptocurrency, and it will have a complete subversive effect on the future blockchain ecology. The main application scenario of lightning network is payment. We all know that the resources on the blockchain are overall limited, and the limitedness testifies in events such as the BCH fork caused by the bitcoin block size dispute, and the later high TPS concept developed by the public chain from the ether to EOS/TRX. These are actually in order to better meet the user needs for low-cost and high-efficiency payment. However, the chain capacity is always limited, even if , Like EOS, it is still limited by the resources on the chain (such as CPU, memory capacity). The lightning network can be said to be very powerful and completely solve this conflict from another angle, and obviously its significance is revolutionary.
Wen Hao: With the development of Lightning Network, Bitcoin payment user experience will approach or surpass that of Alipay and WeChat payment, which will greatly expand the application of Bitcoin in payment scenarios. Real payment demands lead to greater circulation of Bitcoin, and render digital currency such as Bitcoin into the application functions. User behavior will be reshaped from the exchange to the real application scenarios such as wallet and payment. It is obviously fundamental. You can compare with the Fiat currency such as RMB/USD trading proportions in the foreign exchange market, and realize the importance of user behavior change to cryptocurrency development. In addition, due to the decentralized and untrusted nature of the lightning network, the model can also extend to the cross-chain decentralized transactions, having subversive impact not only on the current centralized but also on decentralized single-chain exchange. To illustrate, you can imagine trading BTC/ETH/EOS/USDT through the lightning network in the future without trust needs. The cost almost nonexists, and with instantaneous transaction, there is no depositary requirements. You don't have to deposit coins, you don’t have to worry about the platform runaway, which is obviously revolutionary for the development of the blockchain.
Tong Yang: The second problem is that Lightning Network needs to cooperate with wallets when expanding the payment. How difficult is the lightning networks' current integration with other technologies such as wallets? What are the attitudes of wallet startups to the lightning network? Will the lightning network help with the development of the wallet market?
Wen Hao: Lightning Network needs to cooperate with many wallets when expanding the sphere of payment. correct. First of all, many people may think that the exchange will also participate in building the lightning network. In fact, the lightning network is essentially the opposite of the fudiciary model. Inside the exchange, it's natural to transfer coins from A account to the B account at low cost and high efficiency (just need to tweak a record in the database with no change on blockchain), and if you want to use lightning network, you have to extract coins. the logic is reversed, Therefore, in fact, the lightning network architecture itself has little to do with the exchange. Of course, the exchange can actually establish a lightning network model, to simulate the decentralization, instead of transfering and receiving lightning network transactions, in this sense, you lose the significance of decentralization in no need of trust. We can call it the "pseudo lightning network" model.
Wen Hao: At present, some wallets experimenting with lightning network technology actually adopt this kind of “pseudo-lightning network” model. With this model, users can try and experience the characteristics and benefits of lightning network, but finally, lightning network still will develop into a "true “ one that is completely decentralized with no trust requirement, but we have to wait and see. For the current integrated lightning network, there are two kinds of difficulties in technology fusion: 1. Integrating the "pseudo-lightning network”model, it is actually not difficult, we will soon provide a lightning network trial framework for bitpie.com users. 2, integrate"true lightning network" model. It’s more difficult for the integration part, but in general, it is ok. However if we aim to provide a seamless, easy-to-use, safe and reliable "true lightning network" wallet model, it is much more difficult, and all aspects of design features need to be fully considered.
Most wallet entrepreneurs are still on the sidelines for the lightning network. Of course, some emerging wallets may want to grasp the breakthrough opportunity in the market by lightning network application. But it is still difficult overall, because the current lightning network is still in an experimental phase. In this matter, I personally would like to appreciate the technical efforts the Blockstream team has been putting forward in the past few years. Russell Rusty has been writing the base-level protocol, which is significant for the lightning network application today. Our team has also been gradually increasing our technical investment to help users experience faster, better and safer lightning network, which is very important for the wallet market. As the expansion of the lightning network is actually a wallet, and the expansion to the decentralized transaction will render an integrated seamless experience. On this point, through the efforts of the bitpie wallet on the ecosystem of the EOS/TRX over the past few months, we have seen the decentralization power to a certain extent.There is no need for a centralized exchange for EOS and TRX , and the development of Lightning Network will accelerate this trend, bringing cross-chain decentralized exchanges to every user. The wallet is the bridge and link of vital importance. Interested friends can ask EOS and Wavefield users whether they need a centralized exchange.
Tong Yang: The wallet's accounts are decentralized, and it is more secure for users, but some people argue that after joining the lightning network, there emerges a centralized security risk. In your opinion, will it reduce the security of the wallet?
Wen Hao: The definition of Security is always relative. Even if the wallet account is decentralized, users still need to design a suitable solution based on their own asset charateristics. For example, for large assets, you should not use hot wallets, but use open source or secure hardware cold wallets such as bit shield bithd.com. For another example, large assets managed by multiple companies and organizations should use multiple signatures of bit shields. With the wrong solution, the risks are high, and this is normal as these security strategies are not in fact having anything to do with the lightning network. Due to the characteristics of lightening network innate model, the channels inside are in hot wallet states. From this point, its safety is still limited. Therefore, users should not put large amounts of assets in the lightning network, but instead put the assets that meet real-time payment demands in the channel. For the wallet security, the lightning network itself does not increase the security risk,but it will increase the technical complexity (such as the channel status record, etc.), so the service should be thoroughly tested to ensure asset security. Besides, there is a neglected notion in industry at present that with the development of lightning network applications, large nodes will inevitably appear which will provide channels for many users. Services will be provided such as the establishment and shutdown of the channel, as well as the channel state maintenance.In this sense, it is most suitable for wallet such as the bitpie to serve the functions,as wallet is for ordinary users.Or we can say it's suitable for the mining pool (such as BiYin) to provide node services because the mining pool has advantages in ensuring transaction confirmation and the assets storage needed in the channel. Of course, it is better for the wallet and mining pools to to cooperate to provide large node services.
Wen Hao: But this kind of big nodes actually are confronted with a problem, that is, when you provide lightning network node service for a large number of users, you have to hold a lot of coins in the channel, which accumulated to an astronomical number. We will not talk about the revenue model of holding coins (after all, the lightning network node can charge a small fee appropriately), but we must take security into consideration because the coins in a large number of channels are In the hot wallets, thus the nodes must be well designed to ensure security. (in fact, three years ago, A Biao and I discussed on the security risks.) Our security foundation in this regard is good, we have already developed The ChainCloud.com blockchain cloud platform two or three years ago, which can provide customers with a hot wallet experience with a cold wallet model. In the past two or three years, the bank has stored a large amount of user assets without a single security breach. Therefore, in the future, on Lightning Network, we can also provide users with better and safer node services based on these technological reserves. Of course, for ordinary users, it is not so terrible, because lightning network is a decentralized model without trust requirements. If the big node runs out of order, you don't have to worry about the risk of asset security, just disconnect the channel, and the coins still in your hands, triumphing over exchange robbery. In a nutshell, the lightning network is revolutionary and will greatly transform, and subvert the ecology of the traditional crypto and blockchain industry. From this perspective, it should arouse enough attention from every participant in the industry.
Author： Wang Yukun
Executive editor： Raymond