Lightning Network Status Report: MAJOR Flaws and Topology Concerns
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An article by Jonald Fyookball, which appeared on Medium, demonstrated that Lightning Network may not be as decentralized as some have imagined. However, even though it goes into rigorous formulation, it also provides an non-mathematical explanation for the layman. The article suggests the primary problem Mathematical Proof May Show Lightning Network Will Become Centralizedwith bitcoin-based Lightning Networks is that the payment channels it uses necessarily bring about centralization.
This is especially a problem, says the author, because lightning network tech is touted by its supporters as a peerpeer, decentralized system for bitcoin lightning centralization off-chain transactions using payment channels. However, this is infeasible. In fact, even using a generous set of assumptions, we will prove it is mathematically bitcoin lightning centralization.
For the system to sustain itself many users would have to possess a certain amount of bitcoin — and have it divided up — in order to keep channels open. Without this number of users, central hubs would develop in order to facilitate channeled transactions. This is tantamount bitcoin lightning centralization turning a decentralized payment network into a centralized one.
The article mentions that a large number of channel hops would be necessary to allow lightning network to function in a decentralized manner. The article seems to imply in order for a hop to occur one user essentially has to borrow money from bitcoin lightning centralization user. The problem is that a large number of hops is unlikely. The article demonstrates this issue by showing the channel hops in the form of a tree. To reach anyone in a big bitcoin lightning centralization with a series of branching channel connections, you either need a large number of channels, or a large number of hops.
Both are a huge problem. This is highly rigorous, and basically used to prove the simplistic explanation that not enough hops or channels would appear in order to provide a more decentralized system. For instance, the author attempted to prove this by using a mathematical formulation called a SawtoothWave, which attempts to determine when a user receives income and spends it.
The article went this direction, because bitcoin lightning centralization is no foolproof way to bitcoin lightning centralization the amount of money users will be receiving and sending for the purposes of figuring bitcoin lightning centralization if the needed number of hops and channels will arise over time.
Finally, the author introduces more variables and then uses mathematics to continue determine if the Lightning Network system will function as it is supposed to.
The author believes bitcoin must remain decentralized and on-chain transactions should be established to prevent centralization. Remember, Bitcoin must be decentralized. We must never allow that. Others, however, disagree with this formulation and provide critiques of the authors methodology.
A user named Murch wrote a rebuttal article on Medium. He claimed the model used in the original article was faulty. There were several suspected errors he pointed out in his analysis, including criticisms of how the original author analyzed channels and hopping routes.
This aspect is correctly represented in the tree. However, the nodes bitcoin lightning centralization the route are interconnected. While this could even allow cycles to occur, cycles are not possible in the route construction, as it would allow participants involved multiple times to cut out the bitcoin lightning centralization when learning the secret for the first time.
The overall arguments are interesting, but in the end no one is yet sure if Lightning Network will lead to centralization or maintain decentralization on the bitcoin network. I am a robot. I just upvoted you! I found similar content that readers might be interested bitcoin lightning centralization Rebuttals to the Original Theory Others, however, disagree with this formulation and provide critiques of the authors bitcoin lightning centralization.
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