What I find quite astounding is the pace at which these problems of old are being fixed. They're being knocked down at, dare I say it, Lightning speed.
I'm losing the, admittedly small, ability to think there will be an issue that Bitcoin can't fix on it's path to global dominance.
I'm losing the, admittedly small, ability to think there will be an issue that Bitcoin can't fix on it's path to global dominance.
Well Lightning is a system of banks which they are trying to keep quite about and they have been working on it for about two years
and estimates say it is still 6-8 months away and then more time waiting for wallets to be developed
Quote
"Payment channels let users lock up a fixed amount of funds in a multisignature wallet controlled by the client and receiver. A channel can be opened by sending a transaction to the blockchain. Next, an unlimited amount of payments can be made between the client and receiver. These payments are performed off-chain and only exist between both participants."
They "lock up a fixed amount of funds in a multisignature wallet" is only half the story and balances are kept in the private ledger
and the total will always remain the same as when the channel was created so it becomes a buffer as such and the
killer as I understand it is that money can move backwards and forwards in the ledger but you cannot move money from
one ledger to another one
Here is the white-paper Lightning https://lightning.network/lightning-network-paper.pdf
it's not like liquid money moved across the route and is more like snooker balls that knock into each other
but if inter bank buffers are low in one direction then they might offer to pay a negative fee (Interest) to
fill it back up but at other times they are charging fees for effectively lending you your own money
Quote
The time-value of fees pays for consuming time (e.g. 3 days) and is
conceptually equivalent to a gold lease rate without custodial risk; it is the
time-value for using up the access to money for a very short duration. Since
certain paths may become very profitable in one direction, it is possible
for fees to be negative to encourage the channel to be available for those
profitable paths.
conceptually equivalent to a gold lease rate without custodial risk; it is the
time-value for using up the access to money for a very short duration. Since
certain paths may become very profitable in one direction, it is possible
for fees to be negative to encourage the channel to be available for those
profitable paths.
Miners have the hardware, network and BTC to run banking hubs, you and me don't
