Topic: First Bitcoin Lightning Network Transaction Tested Successfully - page 3. (Read 1973 times)

it is a deposit system though. watch the video!!
you have to get an address from a lightning hub to deposit funds into
this address is created using the hub. (hub and user make a multisig beginning with 2Mxzw...)
this address is the locking mechanism of the funds and requires lightnings authorisation to unlock, to avoid replay attacks/double spends onchain.
EG if the 2Mxzw address used in the demo solely belongs to the user.. then the user can buy 20 ASCII cats.. offchain. and simultaneously move funds out onchain.
but due to lightning needing to sign too, it locks funds in so that users can then make requests offchain using offchain 'coins'/units (millisats) and not able to touch the onchain funds.

the hub has a fee. and even funnier the hub is creating more "units" (3 extra decimals called millisats) where 0.04000000btc becomes 4000000000 milisats (0.04000000000) btc
as shown by
0.03924280000 millisat amount held (0.03924280 sat deposited)
0.00067600000 millisat fee taken (0.00067600 sat fee)

lightning has potential to help people who spend often. but lets not "do a carlton" and pretend its gods solution to everything bfore its even proven itself, before its removed its issues, bugs, flaws.
and before people like him have yet to understand it.

the video is just a phase 1 demo. im sure when they fix the flaws (big one is the extra 3 decimals which will cause issues) that in a few months it will become more clearer to people like carlton to 'maybe' understand it better.

also it has to be noted its the first TESTNET transaction.. not bitcoin.
because if its not involving bitcoins blockchain, its not bitcoin. (testnet is just an altcoin emulating bitcoin to act as a sandbox)

There is no Lightning Network transaction without real Bitcoin being attached to it. It wouldn't attract a puff of attention if it was set up to be like that.

There's definitely the possibility of people being duped into using non LN systems but it's easy enough to know where you're at.

It's not a deposit based system though. So none of that analogy applies to Lightning, the user controls their funds. Maybe talk of multi-sig use has caused you to assume otherwise

Good news, I just hope this will reduce the clamour for hard fork by some people that have money and think they can bully their way through to get the wish implemented

It will indeed reduce that confirmation times, which on its own is a fantastic thing for Bitcoin in the "offline" world. I am sure that if I buy a $1000 TV from a local store and pay for it in Bitcoin, that they will force me to wait for at least 1 confirmation. If with LN it's possible to walk out as soon as you have completed the transaction, it's definitely a huge step forward for Bitcoin.

It is interesting that you look at it that way. I look at it as a repetition of what happened to the past. Remember the time when gold and silver coins were used to transact with each other? Those coins are considered sound money. Then the banks stepped in and held all the gold, which is sound money, and issued IOU's to be used in its place. History is repeating itself in the Bitcoin world it seems.

It is a big news for every bitcoin user.

I don't care if Lighning Network is in fact implementation huge escrow system and mixing it with bitcoin transactions.
And I am sure that ass long as it can reduce bitcoin confirmation times, majority of bitcoin users won't care about technicalities of this project either.

I was doing some research about the Lightning Network solution and I have question and I hope to get an answer from the more learned people in the community.

The question is about fungibility, so let us assume that the Lightning Network is already operational and I open a channel in it and have locked Bitcoins days ago when the price is at $615. Then today we see that the price is already going up around $625 - $630. Won't this discourage the people from using the network because their purchasing power is weaker using it than using a regular Bitcoin transaction? So in a way it is affecting fungibility. The value of the coin inside Lightning could go higher or lower than the value of the coin outside.

Would this be aimed to make fast confirmations ? Do we know when this might be rolled out to the bitcoin network ?

This is will be a good thing for us, and so bitcoin is got their ways for fixing the problem about the confirmation. Using lightning network system. this about the mixing of large escrowed system and bitcoin.

Developers at Blockstream has successfully conducted tests on the Lightning Network using Bitcoin testnet coins.

In the test, the developers used an ASCII cat picture as a demo product. The developer below can be seen manipulating a combination of bitcoind and lightningd, the Bitcoin daemon and Lightning daemon respectively, to instantly purchase a cat picture that developer Rusty Russell has up for sale. Some of the information in the video may be hard to understand, so we’ll do our best here to make it simpler.

http://bitcoinagile.com/8A1D4B/first-bitcoin-lightning-network-transaction-tested-successfully_stream