Andreas’ 2018 Bitcoin Q&A: Misconceptions about Lightning Network
Andreas Antonopoulos Gives Bitcoin Q&A: Misconceptions about Lightning Network
What are some misconceptions about the Lightning Network? How does the onion-routing work? How does channel funding work? Are there any security or legal risks to running a Lightning node? How far is the development so far in making this technology user-friendly? This is not a choice between on-chain and off-chain. A large portion of transaction volume has already been conducted off-chain (i.e. within the private databases of exchanges) for years; what second-layer solutions like the Lightning Network do is to allow for similar low-cost activity without sacrificing most of the security model and trustless nature of Bitcoin. Decentralisation is not a Boolean value, it is a range. The Lightning Network is not only about payment channels, there is also routing between the payment channels of others. You do not need to open a channel with every party you want to transact with. If a merchant does open a channel, they do not have to close the channel in order to be paid.
Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin. Follow on Twitter: @aantonop https://twitter.com/aantonop Website: https://antonopoulos.com/ 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.