Rif Labs Launches ‘LAYER 3’ Solution: Lumino Network
Developers of the RSK network for smart contracts and Ethereum like assets, RIF Labs, has announced the launch of a “third layer solution” to improve its scalability.
RIF, a Gibraltar based firm, on Tuesday, 14th of May 2019 announced that after over a year of development, the Lumino project is now live.
As stated by RIF, the Lumino network can handle about 5,000 tps (transactions per second), while that may be relatively low when compared to the Visa network which handles up to 65,000 tps, it is still way higher than Bitcoin’s tps which rarely exceeds double digits.
Conceptually Similar To Bitcoin Blockchain
The Lumino network is quite similar in terms of concept to the Bitcoin lightning Network, in that the Lumino network enables parties to perform off chain transactions in ‘state channels’ until one of the transacting parties wants to record their final settlement on the blockchain.
In addition, RIF stated that the transaction volume of tokens already running on the RSK network will be improved by the Lumino network.
RSK Network Process
The RSK network, which was launched in 2018, is a ledger or ‘side chain’ that runs side by side with the main Bitcoin blockchain.
A digital asset can be on the main blockchain, while still traded on the ‘side chain’ as well as the other way round. This allows ease in issuing tokens and creation of smart contracts without overloading the Bitcoin network.
In 2018, RSK Labs stated that its side chain “Rootstock” has the ability to handle 100 transactions per second, but knew then that 100 tps was still quite low, hence work on the Lumino network began.
On Tuesday, May 14th, RIF in a press statement said:
“While the RSK Network added smart contract capabilities and on-chain scaling improvements on top of the bitcoin network, it is not enough to achieve transaction processing levels on par with those offered by major payment processors around the world,”
Future Difficulties On The Bitcoin Blockchain
In addition, they said that Improvements made only for Bitcoin main blockchain will cause difficulties in the future
“as every record saved on the blockchain needs to be saved forever. It is going to become increasingly difficult to maintain and validate multi-terabyte blockchains in the coming years.”
On the other hand, the Lumino network offers “near-instant processing capabilities and network transaction costs at a fraction of a cent,”
Still, RIF Lab’s head of research and innovation, Sergio Lerner, carefully described the Lumino network as “the first step towards a scalable network infrastructure.”
Rif Name Service
The Lumino network also utilizes RIF Name Service, which allows parties to give unique names when creating state channels or sending funds instead of the usual random string of characters.