Understanding Lightning in Simple Terms and What It Means for YOU + GET 100SP delegated to you!

in #bitcoin4 years ago

Hi all!

The effects of lightning network coming online is really starting to show. In this video, I explain in layman terms what Lightning is and what you can do to capitalize on this new tech


Now that you've watched the vid, what did you think? I want to do my part to fight spam and promote insightful comments/discussions. I read every comment and value your feedback. Write something and I will pick the most insightful comment to delegate 100 Steem Power to you for a week.

You may earn curation awards using my STEEM manually OR use a service like SmartSteem to vote automatically for you. Just click "sell your votes" button, log in and you are set~

Here is last post's winner: Screen Shot 2018-02-17 at 4.08.43 PM.png
Congrats to @danieldyemusic! What a small world man. I was born in Tianjin and yes it is getting harder everyday for people in China to buy into crypto; that's why I made that video.

-Dan

Sort:  

This is a great explanation @ddangerwu. There is a lot of promotion of lightning network lately and the fuzz might be of the pumps for btc in the past hours. Finally the community moving forward on this issue. I cant believe huge players like coinbase doing absolutely nothing to improve the network, ridiculous.
Anyways, thanks for sharing.

Thank you for this simple explaination :)
I had many questions about lighting, but you answered them all in the video ^_^

Great video, I've seen a lot of explanation video's about Lightning Network, but this was one of the easiest to understand.

Also appreciate the neutrality of the video, something you see less and less of these days. Great work!

thanks man, I appreciate that. I try not to be political and just talk about the facts.

Hello @ddanggerwu, i won't try to pretend at all, i have only heard about Lightning network once once but your video did it for me.

Its explicitly clear even to the newbie. Thanks man. I appreciate that.

Nice explanation @ddangerwu. I read somewhere that the setting up of lightning nodes might reduce the decentralised nature of the network. I didn't full understand why this was thought to be the case.

Do you know something about it or agree that it might be true?

can you link where you read that?

That's refreshing to read. I still don't fully grasp the information but it worried me that it might not be truly decentralised.

There is more than one LN for bitcoin so no monopoly on the LN. Plus all the diff LN are compatible with each other.

I like your way of delegation of steem power.In this manner the real and quality content will be promoted.nice your approch once again!!!!!

I had not seen or even known what is lightning network. After watching your video I can now understand and also make people to understand the machanism of working of the it.
But I will replace the Bob with Jenny!!! Leaving jokes apart what I understood is our transactions will be quick and cost benefit ratio will be in our favor.
If a person like me who had never heard about the concept and can understand within three minutes and 13 seconds anybody can, because your method of explanation was too easy and helpful for layman.
Hope you will keep the good work doing, and help the people especially minnows like me (not by deligation but through videos like this) who are not familiar with digital life too much.
Also one thing that I forget to mention is that what ever I had seen in your video was an totally educational purpose, during whole video the neutrality was maintained that I don't see in any other video.
The concept I had about block chain needs to have an immediate updated, as I am a slow learner I think I must start reading now....!!!!!!

haha I gave you an Alice at the end

Thanks for reading my comment, but I love Jenny!!!!!!! and my whole hearted transactions happen with her!!!!!!

I glad you made this video :)
In fact there actually more scaling solutions to bitcoin that "core" will probably add :)
I made article about these issues :)

How segwit is actually a big block increase= https://steemit.com/bitcoin/@sames/how-segwit-is-actually-a-big-block-increase
Why big blocks are not the answer= https://steemit.com/bitcoin/@sames/why-big-blocks-are-not-the-answer
LN nodes are NOT banks or like banks= https://steemit.com/bitcoin/@sames/ln-nodes-are-not-banks-or-like-banks
What is Schoor signatures= https://steemit.com/bitcoin/@tipu/the-next-big-thing-in-bitcoin-network-schnorr-signatures or https://medium.com/@SDWouters/why-schnorr-signatures-will-help-solve-2-of-bitcoins-biggest-problems-today-9b7718e7861c
Bitcoin’s ethereum killer-rsk.co aka the power of sidechains= https://steemit.com/bitcoin/@sames/bitcoin-s-ethereum-killer-rsk-co
Bitcoin newest scaling method adding bech32 plus others= https://steemit.com/bitcoin/@sames/bitcoin-newest-scaling-method-adding-bech32-plus-others

wow those are some great resources you've made. you might think about making a giant post with all those info and explain a bit about each aspect

I aim to please FYI can you give me your opinion on my project chainmon?
https://steemit.com/card/@sames/chainmon-first-card-is-here

For now, I'm a proponent of onchain scaling.

Onchain scaling, you say? Well, yes. Onchain scaling will mean that for usage by the whole global population we'd need multi-gigabyte block sizes to store all the transaction data.

And multi-gigabyte block sizes would be a very cumbersome thing unless internet speeds and storage capacities greatly improve. So why would I support onchain scaling?

That's simple. I just want to see layer 2 working in the wild before we start banking upon it.

You see, if I'd read Nakamoto's whitepaper in 2008, I'd have been skeptical too. "Sounds interesting", I might say. "Let's see it works in the wild".

And then it did. Nakamoto et al built the Bitcoin network, and I became a fan of blockchain. So when I hear Elizabeth Stark or Adam Back or Luke Dashjr talk about how wonderful they think LN could be in the future, I say: build it. Show me how great it is.

But to let the network degrade in the manner that Blockstream has—where median fees got to over $40 in December—because they believe that offchain scaling is necessary?

Well, that's absolutely sickening. Blockchain works as a decentralized low-fee electronic cash system. We know it works. I've read the lightning network whitepaper, and they envisage global usage of Bitcoin with lightning network. But they calculated that 133MB blocks will be necessary for that to happen, at current global population. Again, I'm open minded when it comes to second layer, because I don't want to end up in a situation with multi-gigabyte blocks. But if 133MB blocks will be necessary for global usage even with lightning, why in the hell aren't they willing to raise the blocksize from a paltry 1MB to 8MB like Bitcoin Cash?

I'll tell you why. It's because Blockstream don't want onchain to work at all for anything but big transactions, to incentivize use of layer 2.

And that's extremely frustrating for me, because right now we are still at the stage where onchain is fine. Bitcoin Cash raised the blocksize, and the fees dropped off a cliff.

Lightning network is an interesting idea, but there are so many things that could go wrong. The protocol in practice could turn out to be highly centralized, and expensive to access. It could turn out to have unforeseen security holes, or severe unreliability problems. That's why building tech in the real world is necessary before we even dream of becoming reliant on it. We have absolutely no idea how well or badly lightning will work in the wild given the problems that have occurred in the limited testnet trials thus far.

So, I hope lightning network (and similar things) are built. In the long run, I think we probably need something like this in order to scale to a global level. In the short run, we cannot neglect what works, which is blockchain. Bitcoin Cash, for me, is the real Bitcoin, because their devs are going for the low-hanging fruit of raising blocksize to keep the network functioning effectively, instead of banking on exotic second layer solutions which don't even functionally exist yet.

I want Bitcoin to be reliable, and useable, and $5, $10, $20, $40 transaction fees in order to incentivize people to migrate to the lightning network is an absolute ripoff. If the fees are anything like that, people are going to sell their BTC and buy BCH or ETH (or another altcoin) instead of waiting for a lightning network that may or may not ever function properly.

run your own lightning node and see $0.15USD transactions confirmed in 1 block
https://medium.com/@jadmubaslat/bitcoin-lightning-network-node-easy-setup-tutorial-for-windows-desktop-users-a-how-to-guide-9937b5a8a669

this is not in the wild or theory

From very near the top of the post in bold:

"Keep in mind, this is currently for testnet BTC ONLY right now. "

Yeah, OK.

Are you just shilling for Blockstream or do you actually believe this theoretical lightning that only is approved for use on testnet has solved Bitcoin scaling?

It comes with a lot of disclaimers, e.g. "don't use it or you're at risk of losing your funds."

Listen to Rick Falkvinge. He explains some of the potential problems with LN.

I know the problem however LN is now in mainnet and has been successful, it basically beta mainnet and based on current progress it will fully launch on April-June

Um that link is not a good main net LN node link. Here is a better one: https://medium.com/@dougvk/run-your-own-mainnet-lightning-node-2d2eab628a8b

Actually i don't get accurately the @Lightning Network.
I wanna know that. What can I do? @ddangerwu
Waiting for your response....
Upvoted and resteem done...

the information you convey is very useful. hopefully get guidance and direction

Nice post about lightning network! Please checkout my page!👌👍

Finally, a simple explanation. Can't wait to see it in full use.

Nice post.

Release the Kraken! You got a 18.19% upvote from @seakraken courtesy of @ddangerwu!

You got a 41.37% upvote from @ipromote courtesy of @ddangerwu!
If you believe this post is spam or abuse, please report it to our Discord #abuse channel.

If you want to support our Curation Digest or our Spam & Abuse prevention efforts, please vote @themarkymark as witness.

I just followed you cause your posts seems to be informative post you can find similar crypto news on my steemit @reewy ,,that might be productive for you too...

Nice 😁👍👍

You got a 8.49% upvote from @buildawhale courtesy of @ddangerwu!
If you believe this post is spam or abuse, please report it to our Discord #abuse channel.

If you want to support our Curation Digest or our Spam & Abuse prevention efforts, please vote @themarkymark as witness.

🚀🚀🚀🚀🚀🚀 🚀🚀🚀🚀🚀🚀 🚀🚀🚀🚀🚀🚀 🚀🚀🚀

https://steemit.com/free/@riann/free-coins-february-17th-airdrop-bounty-bitcoin-usd-ico

FREE COINS February, 17th #AIRDROP #Bounty #bitcoin#USD #ICO
🚀🚀🚀🚀🚀🚀

Good post!

wao! This is really great, lightning indeed, this is like the greatest idea have seen, cause its high time we curb spam in this new tech. enough is enough.. thumbs up bro

video is might be so much helpful for all thanks for posting.

Hi @ddangerwu! You have received 0.1 SBD tip + 0.01 SBD @tipU from @cardboard :)

@cardboard wrote lately about: Just Testing. Feel free to follow @cardboard if you like it :)

Tipuvote! - upvote any post with with 2.5 x profit :)

Lightning power is one of the best energy to human beings. Nice article good. I me and upvote my blogs.

good post, nice to meet you may be a successful, and hopefully we can become friends

Thank you for that insightful information. it was a real help for me as a newbie.

Havent heard anything about lighting until now, but I could see how that would be useful for users who do a lot of trading. The privacy seems like a good idea, Im new to the crypto market, but I personally think its a little strange that I can click on any users wallet on here and see all their transactions. Why is that?

that's actually the beauty of blockchains. it does not rely on secrecy to protect you, rather cryptographically called "hidden in plain sight". for more details, look up P = NP problems

this was very useful. thanks.

awesome video about lighting network, this is the first time i actually sit and read an article about it. hope you keep it up and i will follow you from now on.

That's awesome.. Lightning nodes can solve the scaling problem of the bitcoin. Bitcoins are the gold of the cryptoworld.

Bitcoins will definitely hit $100,000 next year I suppose. What do you think?

Excellent explanation @ddangerwu, thanks for providing us valuable information and for teaching us every week.

Lightning network in my opinion is revolutionary.

I like of delegation steem power thanks

great article in the remembrance of others.

Yes, I did not know what was the lightning and I was about to not complete the reading but I decided to watch the video and then I understood everything and what is the lightning I would regret not to watch the video or read the end of the end Thank you for the information and all this information

Excellent explanation of lightning network, easy to understand.

the post is very interesting @ddangerwu, after i watch i want to apply it

perfect post :) !

Congratulations @ddangerwu, this post is the second most rewarded post (based on pending payouts) in the last 12 hours written by a Superuser account holder (accounts that hold between 1 and 10 Mega Vests). The total number of posts by Superuser account holders during this period was 1526 and the total pending payments to posts in this category was $13342.72. To see the full list of highest paid posts across all accounts categories, click here.

If you do not wish to receive these messages in future, please reply stop to this comment.

Speed is needed for bitcoin so this is good for that. The biggest problem with bitcoin as far as I am concerned is the excessive miner fees to move your currency and actually use it. As long as those fees remain so high, and as the value of bitcoin increases they just get more insane then it doesn't really matter how fast you make it.

There are so many better choices that are faster by far than even lightning. Better choices that have low or even NO fees.

If anything kills Bitcoin I see it being those fees.

Ln avoids those fees.

you have to pay fees to open a lightning channel. Not so bad if it's $1 per transaction, but if it's $40 like it was in December, it will be a real killer. Better to use second layer with Bitcoin Cash, where fees are less than 1c per transaction, in my opinion.

You would need some type of segwit to use LN. Bitcoin cash refuses to add segwit stated in their site. Plus bitcoin cash supporter say LN violates the whitepaper and all bch dev are researching way to increase the block size, 1 tb is the goal. Plus segwit in bitcoin would make bitcoin do 10 tps with bech 32 making it 12 tps. Eth level. Plus segwit at random times can do 3 mb blocks so meaning 17 tps plus batching of transaction will make the meempool smaller and mast and other segiwt dependent protocols can make bitcoin do 200 tps in a 1mb block. Plus bitcoin will do a hardfork one day for bigger blocks

Congratulations, your post received one of the top 10 most powerful upvotes in the last 12 hours. You received an upvote from @upme valued at 207.35 SBD, based on the pending payout at the time the data was extracted.

If you do not wish to receive these messages in future, reply with the word "stop".

Hello Friend, thank you for taking the time to read my article. I invite you to follow me. Hugs

This is great news really, it brings back the vision that inspired satoshi, i think he'd be happy.

Great video and easy to understand! Thanks!

Hi, I'm going to make a short story about what is being lived in Venezuela, may not win the contest, but please consider these little words, first of all our minimum salary is $ 1, we have an inflation of 4,000% and every day the thing becomes more difficult, my house has not come hungry, since we all get up early and go out to the street to find the money, I joined steemit to have an extra income in our home. What worries me most are all those families that the government has made them increasingly poor, where they have nothing to eat, and they have to go out to the streets to ask for food, my question, how can a country be one? of the best in the world happened to be one of the worst of the night?

This was a great video that cleared up some things for me. I remembered you telling me that you were setting up a video about this so I had to swing on over.

I believe this is great for bitcoin buyers especially newer ones because since they are hearing about how bitcoin is swelling up in value, I doubt they would want to wait for slow transaction times or high transaction fees and I especially doubt they would try to understand the reasoning behind it and instead just chalk it up as a disadvantage to buying crypto altogether.

I remember dealing with the transaction fees on numerous occasions when I was buying ECC on coinexchange. I was already losing time due to ACH transfer times sending money to coinbase and since I was only putting in small amounts I could afford to lose I was basically putting in nothing worthwhile. It was around this time where coinexchange put limits on depositing small amounts of bitcoin saying that they were eating transaction fees so they would put a penalty charge on everyone who couldn't put a few hundred in bitcoin on the exchange. So in addition for the long wait for the ACH->Coinbase/GDAX->Coinexchange deposit to complete I was having my investment battered along the way by fees. Safe to say many new people might be turned off to investing in crypto that way.

Luckily lightning is showing real progress and making both time and fees pleasant. Hopefully this video can be used to show interested future investors that it is basically as simple as investing towards a stock on Robinhood. Thanks again for this video.

Hello Friend, thank you for taking the time to read my article. I invite you to follow me. Hugs

Good post 👍👌, Please upvote back me, @hazmisyahputra, thank you.

Excelente post, Soy nueva en la comunidad espero contar son tu apoyo, Siempre estaré apoyándote gracias... Éxito

Hello, I'm a miner too, but the thing is that all countries are worried of people finding workarounds & skipping taxes and also big people can easily manipulate the rates. There should be a way that we can somehow convence & comfort the governments of their respected countries & promise them more transparency.
Why I mentioned this? Because, result of all the regulation & Banning, I as a miner now only get 1/3rd of the profits I used to earn, well I'll honestly mention that difficulty has increased too so not all is government's fault but mostly it's that only.
Even after Lightning Network's implementation, Bitcoins will surely be once again the preferred payment method, but the most important is the elimination of new & even scam/fraud cryptocurrencies which are looting people and people, please understand, there will always be some people trying to sell you dreams, but you need to understand that without any effort or just by watching a countdown clock on a website & no major investments, you can't become rich or millionaires overnight.
I'm in full support of Bitcoins & cryptocurrencies but only the ones which I can mine or produce or which has some real life usage.
I wish you all readers a very happy, successfull & regretless lives ahead.

The explanation in the video was really great. Just simple and straight to the point.

With regards to the functionality of the Lightning network, there is no denying that it can be an effective second layer solution. But from what it seems, LN's capability is limited. There are many loopholes that the teams behind LN fail to explain to a layperson like me. It even gets more complicated to the newbies. Many critics are telling that LN is centralized, prone to attacks, and so on and so forth.

I may not win the competition anymore since the info that I am going to share is not my own nor I am related to the creator of it. The technology is called Failsafe and they are proposing a solution to the present LN loopholes. I cannot say that the tech is foolprof either way, but it looks promising nevertheless.

For me, only the fast and cheap transactions are keeping BTC from getting its full potential. Privacy and mining efficiency might be the next areas for improvement, but might not be priorities for now.

Please check out this article about Failsafe https://medium.com/failsafe/why-lightning-and-raiden-networks-will-not-work-d1880e4bc294. I am having a hard time digesting the article completely but its great to see a simple solution like this to stop LN critics from worrying too much.

what are some loopholes?

The main loophole discussed in the article is about the liquidity of the hubs. From that, many problems may arise including:

  1. Inability of new users with zero funds to start with to open new channels in a hub because of the expensive fees
  2. Vulnerability to sybil attacks that attempt to destroy the liquidity of a hub. This might be possible since there are people who really hate Bitcoin. Doing KYC to monitor user actions in a hub might take away the decentralization and privacy purposes of crypto.
  3. The high amount of money required to create liquidity to new hubs. Who will be willing to open accounts worth millions and billions of dollars in a hub?

I may have missed out some points the author wanted to highlight in the article. But Failsafe offers one simple solution to answer all of this existing problems. You may just read the last part of the article. I'll quote it in here.

"But is there hope?

LN/Raiden incentive model is hopelessly broken, but it’s not a game over. The fix is ridiculously simple.

Introducing Failsafe Network

The hub can give a signed promise to Bob (positive delta +10) for every commitment they receive from Alice (negative delta -10). Alice can settle whenever she wants (normally when positive delta is reaching 100x of current onchain fee, eg $1,000). A positive delta is not exactly custodian balance, as it’s possible to enforce the hub to pay you onchain as long as the hub is solvent.

Sure, you don’t have 100% security for 100% of your money, there’s a trade-off to be made.

But it’s a lot more important to keep first layer lightweight and bandwidth requirements as low as possible than going full Bitcoin Cash like newer blockchains promoting “100,000” tps do.

Those who sacrifice first layer aren’t real blockchains but scammers who edited a single line of code that limits blocksize.

In Failsafe you get 100% security for 99% of your money (collateral) and 99% security for the other 1% (money in-motion, positive deltas). As long as sum of all deltas stored by a hub is <0 (more money owned in negative deltas than promised in positive deltas), the hub is solvent.

Once it gets insolvent, it will be apparent fairly quickly as it stops settling collateral on time, and people would migrate to other hubs."

sorry I didnt get very far with that article. "How the hub pays to Bob? An on-chain channel to Bob is a pre-requisite to routing any payment." the author assumes that everyone needs to use lightning in order for it to work. this is not true. Lightning's value is that it significantly reduces the traffic of all transactions, so even if you dont want to use it, you will benefit from its effects. the situation right now is the evidence. you may send a non-lightning transaction and get it through with $0.2 USD in the next block.

Yes, if there is no incentive to run and join a hub and if the BTC transaction costs are as cheap as today, not many people will be interested to use the LN at all. I also think that Lightning Network is a great tech but for it to achieve its true potential, many people should be able to use it.

This is the same exact words of the author of the article that I linked:

"So it will not work?

Yep. When it will be released, no one will give a shit. A few enthusiasts will install it, play around in testnet, run “simulations” but that’s about it.

As a user, you will have no reason to open a channel to anybody, no one will have an incentive to open a channel to you, and no one will have an incentive to run a hub to join you guys together. Stale mate.

Don’t trust me? Fine. Wait 3–6 months and see it yourself."

From what I have understood, the author is not proposing a replacement to the Lightning Network but rather an additional feature that can help monitor and maintain solvency in a hub. In this way, more users will be encouraged to use the Lightning Network as the main channel for micropayments.

I mean if he wants to add additional feature then go for it. no one is stopping him. but I have a problem with his words "When it will be released, no one will give a shit. A few enthusiasts will install it, play around in testnet, run “simulations” but that’s about it....Don’t trust me? Fine. Wait 3–6 months and see it yourself."

the current situation is the opposite of that. LN has cleared all the mempool.

I think Failsafe is intented mainly for the skeptic people to gain more trust in LN. But the way the author said it is not the proper way to encourage LN developers to adopt Failsafe.

Yeah LN provided an extra lift. The decreasing number of transactions added to the mempool per day (perhaps FOMO'ers starte to lose interest on crypto when they saw BTC price drop to 6k and also because of LN drastically reducing the no. of transactions on the main net), increasing SegWit adoptation, and larger block sizes also contributed to the decongestion of the network.

https://blockchain.info/charts/n-transactions
http://segwit.party/charts/#

Anyway, thank you for your time to discuss with me on the matter. I hope you are having a great day. :)

The reason you have to cut the line is due to the artificial restrictions imposed by Blockstream and Core to limit the blocksize to 1 MB. You have no such restrictions on Bitcoin Cash thus there is no need for the Lightning Network.

Nice post about lightning network! Please checkout my page!👌👍