Topic: Stakenet makes The Lightning Network Decentralized Using Masternodes. Thoughts? (Read 337 times)

Thanks man. I think it will be a lot more commonly embraced once it launches and everyone can actually see all the great ideas in action.
It will be especially interesting to hear ReadySetCrypto's upcoming take on it.

I agree with nightflightcourt.
BTC's LN will not achieve "mainstream success" on its own.
Currently, what is the point of operating a BTC Lightning node? Or a watchtower?
None. Because the fees on the Lightning Network are by definition negligible.
Stakenet provides a solution to this problem, with its network of masternodes acting as LN nodes.

It's a shame that you lost your funds. I used to use Cryptopia to buy Stakenet too, but I always sent what I had on the exchange to my wallet immediately afterwards.
Stakenet addresses every single problem you've mentioned.

1.) Their DEX solves the exchange hack problem by allowing anyone to trade and swap directly from a private wallet instead of having to send their funds elsewhere
2.) Their upcoming multicurrency wallet will allow for seamless interoperability between a wide variety of coins. You can hold several coins without having to download the individual chains because the MN network hosts them
3.) It allows Bitcoin to scale. LN adoption from BTC's end is slow because there's little profit or incentive for someone to run one. Stakenet's network of near-2,200 MNs will act as a massive Lightning Network payment processor, while the MN collateral will provide a bunch of liquidty for Bitcoin transactions.

At the moment, it's very cheap. If you're looking to get a position back, it's a great time to do so.
I know that the widespread sentiment right now is that Bitcoin dominance is going to go up forever, but I'd like you to remember that people said the same exact thing about altcoins in early 2018.

I was holding XSN but lost it all on cryptopia. It was the only altcoin I had before I dumped it all.

There has never been a worse time to hold altcoins, to be frank. Even if some projects have a decent and genuine goal you just can't ignore the game theory behind the whole altcoin thing. It's just so inconvenient to hold several different wallets. Reason me and many lost their coins on shitxchangers was due the fact that we do not want to deal with the stress of having many wallets installed, keeping them updated, making sure the checksums are legit so you aren't install malware (ideally you want to compile it yourself)... it's an huge mess.

BTC dominance is going back to 90% ish and this is good, because most altcoins are dumb and useless. Unfortunately the good ones that will die are collateral damage.

BTC is already the de-facto digital hard money. If BTC's LN and other 2nd layer solutions reach mainstream success then I don't see a single altcoin succeeding long term.

This project is absurdly underrated.

The Lightning Network will enhance the whole user experience of a TON of alts, as soon as people find out how FAST it is to interact with - In fact, we've seen a lot of projects move to Lightning recently, which is a good sign for further adoption of the technology

You seem to know a lot about Lightning, so I assume you're following the technology movements closely.
I agree with the fact that this tech opens up a lot of possibilities for altcoins to further enhance the user experience for everyone.
When reading about Lightning and Bitcoin, there's a lot of mixed feelings, since it seems like a centralized solution, hence why I believe Stakenet's decentralized solution is a genius idea to route payments faster than anyone else in the crypto space, further enhancing the experience of BTC and LTC users, who's gonna benefit from trading on the Stakenet platform.

I can see a lot institutions wanting to move their business to lightning as well, since it provides near instant trading, without risking your millions of dollars on a centralized exchange.

Because opening and closing LN channels requires on-chain transactions, and because you can't possibly open channels with every single LN node on the network. This is why payment routings (and liquidity) are fundamental on the LN. All you need is to open one channel with enough local balance on it to be able to send to any other peer on the network, even if you don't have a direct connection with them, the payment will be routed through one or several LN nodes to reach its destination.
Stakenet's masternodes, which will be LN full nodes, will play this role (ensuring payment routing and providing liquidity).


On the contrary, Lightning Network is an opportunity for Altcoins, because it simplifies atomic swaps (Lightning Swaps = atomic swaps over the Lightning Network).
Stakenet's aim is to provide a cross-chain architecture for cryptocurrencies, where users can easily operate with any blockchain simply by using Stakenet’s native coin XSN, as the blockchains are connected to each other through the Lightning Network and other cross-chain technologies.
Stakenet will propose a decentralized exchange (XSN Dex), built on these cross-chain technologies, and run by its Masternodes.

What I mean is that masternodes will be LN full nodes (hosting the blockchains), serving the Stakenet wallets which are LN light nodes (or light clients).
The LN is a second layer. To be able to use LN, you need to open LN payment channels. Since Stakenet wallet is a (light) LN node, it is able to open such channels, so you can make LN payments and LN swaps.

Interesting, because the way I understood it, was that the masternodes running the dApps, host the blockhains on their servers, to make it easy to connect with the DEX (No syncing time), this sounds pretty cool actually, more decentralization isn't a bad thing, no?

In fact, each Stakenet wallet is a Lightning node, but the advantage of the Stakenet wallet is that it is a light multi-currency wallet (with desktop and mobile versions), which means that you don't have to download the 240 GB Bitcoin blockchain or the 22 GB Litecoin blockchain to be able to use the Lightning Network, or to make Lightning Swaps.

Users don’t need their own Lightning Node to do Swaps they just connect to the network we have. You need the network to keep track of all the transactions and monitor the balances otherwise what would verify everything

Why can't people just swap directly to one another on LN? Why is a lightning node necessary?

Sounds like a promising project. One that I've been eyeing for the last couple of weeks.

Lightning is a great tool to "make Bitcoin great again", since you'll be able to compile a huge number of transactions into a few using a second layer.
I don't see why this wouldn't be popular amongst traders who wants to avoid KYC, and regulation. I mean, instant trading while in control of your own keys at all times is cool, and I wonder why nobody has ever thought about this before?

Following this thread

There's a lot of haters on Lightning, basically because it's a centralized solution on Bitcoin.
I'd like any doubters to join the discussion and share their thoughts on this. Seems like you know what you're talking about in regards to lightning, which is great.

The DEX idea is great, but if it doesn't provide INSTANT trades, nobody is gonna use it. That's why I'm bullish on this project overall.

Stakenet's idea is to put its second layers - the Masternode (MN) network and the Lightning Network (LN) - at the service of each other, and to bridge between the different blockchains with Lightning Network.

Stakenet's MN will be:
- LN nodes, providing more decentralization to the LN.
- LN watchtowers, offering more security to the LN.
- Bridge nodes between the different blockchains with Lightning Network (BTC, LTC, ...).

Stakenet's MN will use their collateral to provide liquidity to LN, i.e. instead of having the collateral 'stuck' in the MN, it will be used to open large LN channels in order to route LN payments.

Stakenet will offer Lightning Swaps, i.e. swaps between two different cryptocurrencies on the Lightning Network.
Lightning swaps - which are off-chain and therefore instantaneous and with little fees - should not be confused with Atomic Swaps which are on-chain and therefore slow (need to wait for confirmation on both blockchains) and expensive in fees.

Lightning Swaps will be the basis of Stakenet's Decentralized Exchange (DEX), which will run on Stakenet's Masternodes.

Bitcoin and Litecoin is probably the most known crypto currencies around, they are also the oldest chains. They own the most reputation in the crypto industry, and is by far the most used (Not to forget ETH ofc).
As stated in my original post, it matters a lot that these blockchains can scale with the growing demand. If transactions takes too long, nobody will even bother to use it as a currency. There's a reason people call Bitcoin a "Store Of Value", it's a bullshit lame excuse. Bitcoin was meant to be used as peer to peer money, without any centralized entities involved. All these centralized exchanges and their KYC requirements is NOT how Bitcoin was supposed to be used in the first place (Read Satoshi's white paper).

Stakenet is promising because it enhances Bitcoin and Litecoin - Which means people invested in BTC and LTC will benefit hugely from services provided by Stakenet. So in other words, It's not a competitor per say, like most altcoin projects out there, who wants to be "the best", with as much transactions per second as possible.
Most projects only focus on a couple of things:

Privacy
Speed of transactions
Platform tokens
Oracles

- And the list goes on.

Trading, especially day trading has become VERY popular these days, because the market is as "boring" as it is. Trading on any centralized exchange is risky, since it can be hacked due to it's centralized point of failure.
Guess what happens once you can trade instantly, anonymously, and 100% trustlessly through a Lightning DEX, which offers lower fees than most centralized exchanges?

Now, with Stakenet's Multi Currency Lightning Wallet, you'll be able to catch a HUGE BTC pump on your way to work, tether up in an INSTANT, (Again without risking your funds on a centralized exchange), and exchange it back to BTC (or any other lightning compatible coin). You'll be able to do that with a simple click on your app while on the go.
All the technical parts is solved by the masternodes running the dApp. You wont even need to sync up with the DEX, nor register, or provide ANY personal informations.

Now THAT is freedom, and it's exactly why I'm accumulating this every chance I can.

Atomic swaps is cool and all, but if you think for one second, that the general public wants to wait even 2 minutes between each trade, you're delusional. Atomic swaps is NOT a great solution for a DEX, Lightning is.

Basically this project..
- Solves different problems which we will encounter in the nearly future
- No competitors which offer an AllInOne service as Stakenet
- Team shows physical development results since two years ago

No wonder Stakenet will make the difference long-term.
_____________

DEX is an interesting idea, but i believe it won't express the real potential of the project in the next months.
I mean, of course i do not expect the DEX to have success and be the killer-app. My vision is much more far.

Just think. Stakenet is a decentralized, self-governed Lightning Network Blockchain, backed by masternodes.
This mean it can host EVERY service which will come out on LN in the next years.
Forget the DEX, have you a vague idea how many possibilities and partnerships this will open?

A working blockchain, on a new layer of complexity, with no competitors.
It's insane, this is such an obvious project to hold!
This reminds me Chainlink at its beginning.

Romans built the roads for horses, as Stakenet is building a blockchain for future services and users.

I'm bullish.. but on the very tomorrow.
I say two full years to really explode.


Collateral is always necessary to open masternodes in every blockchain project.
Imagine opening masternodes without collateral.. would be fun to receive ROI from 100 free dash masternodes

I know BTC is king, and I know BTC and LTC are leading lightning network and I know XSN is one of the only projects innovating on lightning besides the other 2. However, I am unsure why it matters?Can someone explain to me why lightning matters? How does it work?

Why is masternodes collateral necessary?

I’m very bullish on that.

These kind of technology will change Crypto forever, as soon they launch they’re DeX.
Just the perfect Setup.
Using Masternodes that way gives all decentralized Apps new possibilities.