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BTC’s layer 2 method also doesn’t scale because (among other reasons) you still need on-chain transactions to handle opening connections and creating wallets, w
by 542458 5y ago
BTC’s layer 2 method also doesn’t scale because (among other reasons) you still need on-chain transactions to handle opening connections and creating wallets, which the main chain does not have the throughput to do at scale. That’s also not to mention all the practical difficulties of using lightning (have to constantly monitor for fraudulent closing of connections, locks up liquidity, etc) and technical issues (route finding doesn’t scale, introduces massive DoS vulnerabilities).
- diegocg 5y agoDon't worry, bitcoin will solve these problems... With a third layer!
- gruez 5y agoMany of the problems listed are either overstated or have solutions already. eg. >you still need on-chain transactions to handle opening connections and creating wallets, which the main chain does not have the throughput to do at scale channel factories >have to constantly monitor for fraudulent closing of connections watchtowers (which are trustless) and you don't actually have to "constantly" monitor, more like once every 2 weeks.
- javert 5y agoLightning is not the only layer 2. In fact, the most obvious layer 2 is simply to use custodial solutions. However, I personally think lightning works better in practice than what you're saying.
- rawtxapp 5y agoLightning channel factories will reduce the on-chain transaction requirements very significantly by batching many channels open/closes into a single transaction.
- tromp 5y agoIt clearly offers much improved scalability since 2 on-chain transactions can support hundreds of off-chain ones. Certainly, there are still limits on the number of transactions it can support in practice, but those numbers are orders of magnitude larger.