So let's review what he just said:
Lightning Network is an Off-Chain (not actually a part of the Bitcoin Record) way for Computers to Validate Transactions to increase capacity and Speed for Bitcoin.
People are going to run full nodes, validate transactions and be compensated for BOTH by putting up collateral on a Lightning Network, an equivalent of Proof of Stake. But will who validates your transaction be random? No. It will be trusted. Will there be protocol level security for double-spends to be discarded? NO. A whole set of protocols would need to be built to protect against this. Would these transactions be recorded on the Blockchain? NO. That's that point of the Lightning Side-Chain Networks.
There's a dozen questions that poke holes in this approach to "Fast Transactions" and Lightning Network will have to answer the SAME issues that Proof of Stake has. It begs the question - WHY NOT decentralize this process in a secure method integrated INTO Bitcoin Protocol, not a "side protocol"?
There's a Cryptocurrency that has taken Bitcoin Core and IS DOING THIS on a Protocol Main-Net Level - everyone who runs full nodes also has authority to be a Validator, and the Validation is Random amongst ALL nodes based on "Bitcoin" stored in Nodes. (much more secure than Lightning Networks). Add to that, they created a layer of Nodes with larger amount of collateral that Instantly Verify Transactions - and are used for Double Random Validation of each Block. This answers the security issues of Lightning Network, while ON CHAIN creating a totally decentralized, far more secure, Protocol Level way of running Bitcoin equivalent of Lightning Network, but doing it AS Bitcoin, not on a side chain.
Why not incorporate Lightning Network on a Protocol Level?
This is what PIVX IS DOING. It's doing right now what Bitcoin pretends to do in the future with Lightning, but on a Protocol Level, much more secure, and totally decentralized method. Everyone can join the Bitcoin 3.0 "Lightning Network" and get paid to run a full node and validate transactions, with transactions happening instantly - on the blockchain.
Keep on writing, hoping to learn more about crypto from a cryptonomics stand point. well done!!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit