Bitcoin Lightning Network Surpasses $11 Million Capacity As More LN Updates Progressing Along
The Bitcoin Lightning Network has just reached a new important milestone. Now the network has the capacity to support $11 million USD in trades. There are even more updates on the way, so 2019 is shaping up to be a great year for the users of the LN.
In case you are not familiar with this solution, you should that the BTC Lightning Network was originally created as an off-chain scaling solution for Bitcoin. All transactions are made outside of the main chain, so they are faster. Originally, the software was launched with some bugs, but most of them have been corrected so far.
New Updates Are Coming: Eltoo, Atomic Multipath Payments (AMP) and Payment Points
Not only the LN is doing great now, but three new updates were also announced on Reddit recently by one of the developers. The first one of them is Eltoo, which is supposed to be an answer to the “toxic waste” problem that plagues the protocol.
This problem stems from the fact that the old state of transactions can be used in order to publish a stale unilateral close transaction or, in simpler words, you can use it try to steal funds, which is what makes a part of the protocol “toxic”.
According to the new update, the old state will be gainsaid by the later state and the problem will end up being fixed this way. This can also be a positive update as it will help more people to participate in the protocol.
However, one problem is predicted to arise with the use of Eltoo. The new protocol would end up requiring a new base layer. This could complicate the route finding algorithm and create even more unexpected issues.
The next update, Atomic Multipath Payments (AMP), will be able to split large transactions into smaller ones in order to make them easier to complete. It was originally proposed by Lightning Labs, one of the main developers for the Lightning Network (LN), and it lets each payment follows its own path.
There are two variants of this technology so far. One of them is the base version, which uses the same payment hash for all routes and the “high” version, which combines features from the two variants.
According to the developer from Reddit, this update could be important in order to bring more reliability to the whole payment process, but the fees may get higher if it is implemented, which is not really something very good.
Finally, there are also the Payment Points. This update would make the LN stop using pre images and hashes in order to use scalars and payment points instead. All invoices would reveal a private key to the funds.
The main advantage of this model is that it can be used as a noncustodial escrow, which would be a new functionality to the network.
At the time, there are over 13 updates planned for the LN, so these are only some of them. It seems that the Lightning Network will continue to grow and get better for a long time.