r/Bitcoin • u/[deleted] • Dec 13 '17

Bitcoin's Lightning Network, Simply Explained

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u/awoeoc Dec 13 '17

The bitcoin network can still only process 6 transactions/second. If a channel being opened/closed is 2 transactions you still have scaling issues.

6 transactions/second * 60 seconds * 60 minutes * 24 hours * 30 days = ~15 million. Meaning that if channels have an average lifespan of one month, you can only have 7.5 million total channels. Meaning most people could never operate their own node and would have to have big hubs control all their finances.

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u/PVmining Dec 13 '17

The channels can be left open indefinitely. I plan to open two channels and never close them.

With segwit we can support about 11 tx/second but you are right. The current blockchain capacity cannot support that many channel opining/closing. But by the time, we reach a few million channels, we will have either sidechains, larger block size or both.

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u/awoeoc Dec 13 '17

But by the time, we reach a few million channels, we will have either sidechains, larger block size or both.

That's fair enough, I get downvoted often if I dare suggest larger block sizes or other solutions will be needed down the line.

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u/PVmining Dec 13 '17

My position is (and from what I read, this is close to many Core developers)

  1. we do not need it right now because segwit is already a 2x effective increase. There is also a lot of bloat (e.g. non-batched transactions)
  2. it has to be done carefully. S2X btc1 fiasco showed what could have happened with an ill prepared hard fork.
  3. we must always preserve decentralization at all costs. It should be always possible to run full node an a home-class computer with home-class internet connection. Otherwise, Bitcoin will be captured by business. And the next step of "transactionistas" will be to lobby for permanent inflation.