Lightning network has been heralded as the way to scale Bitcoin into the future, but as it is starting to become apparent that two very separate camps with differing opinions on how to scale Bitcoin are starting to draw lines in the sand, it’s worth taking a pragmatic look at this technology, seeing as it seems to be shaping up that once adopted, it will be very difficult to back out¹
First off, I want to say that Lightning as a concept is pretty interesting. I think that it will have many uses in the world of Bitcoin. Yes, I have read the white paper (both long and short version) and I believe I have pretty good understanding of how it works. A disclaimer, as most of the development is happening behind closed doors via BifFury, it’s hard to comment on any of the new yet unreleased progress, such as developments on the routing algorithm.
Let’s examine the pros and cons of the Lightning overlay network.
- Unlimited txn/s
- Secure from double spends
- Requires Bitcoin to use