{"id":1509,"date":"2020-01-08T11:37:31","date_gmt":"2020-01-08T11:37:31","guid":{"rendered":"https:\/\/blockchain-society.science\/?p=1509"},"modified":"2020-01-08T11:37:31","modified_gmt":"2020-01-08T11:37:31","slug":"dshrs-blog-bitcoins-lightning-network","status":"publish","type":"post","link":"https:\/\/blockchain-society.science\/?p=1509","title":{"rendered":"DSHR&#8217;s Blog: Bitcoin&#8217;s Lightning Network"},"content":{"rendered":"<blockquote><p><a href=\"https:\/\/blog.dshr.org\/2020\/01\/bitcoins-lightning-network.html\"><img src=\"https:\/\/blockchain-society.science\/wp-content\/uploads\/litho\/70973febd6a9f20001b7fa9f001ca7c49c0d749524923fc31cb23d6c04eaa3f4.png\" class=\"image-treated\" data-original=\"https:\/\/blockchain-society.science\/wp-content\/uploads\/2020\/01\/FailedTransactions.png\" data-treated=\"https:\/\/blockchain-society.science\/wp-content\/uploads\/litho\/70973febd6a9f20001b7fa9f001ca7c49c0d749524923fc31cb23d6c04eaa3f4.png\" \/><\/a>Discussions of cryptocurrencies and other blockchain technologies are bedeviled by a nearly universal assumption that attributes that are possible to achieve in theory are guaranteed to be realized in practice. Examples include decentralization and anonymity.Back in June David Gerard asked: How good a business is running a Lightning Network node? LNBig provides 49.6% ($3.7 million in bitcoins) of the Lightning Network\u2019s total channel liquidity funding \u2014 that just sits there, locked in the channels until they\u2019re closed. They see 300 transactions a day, for total earnings on that $3.7 million of \u2026 $20 a month. They also spent $1000 in channel-opening fees.Even if the Lightning Network worked (which it doesn&#8217;t), and were decentralized (which it isn&#8217;t), Gerard&#8217;s point was that the transaction fees were woefully inadequate to cover the costs of running a node. Now, A Cryptoeconomic Traffic Analysis of Bitcoin\u2019s Lightning Network by the Hungarian team of Ferenc B\u00e9res, Istv\u00e1n A. Seres, and Andr\u00e1s A. Bencz\u00far supports Gerard&#8217;s conclusion with a detailed analysis.<\/p><\/blockquote>\n<p>Source: <em><a href=\"https:\/\/blog.dshr.org\/2020\/01\/bitcoins-lightning-network.html\">DSHR&#8217;s Blog: Bitcoin&#8217;s Lightning Network<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discussions of cryptocurrencies and other blockchain technologies are bedeviled by a nearly universal assumption that attributes that are possible to achieve in theory are guaranteed to be realized in practice. Examples include decentralization and anonymity.Back in June David Gerard asked: How good a business is running a Lightning Network node? LNBig provides 49.6% ($3.7 million [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[14,8,20,27,22,26,6,5],"tags":[],"_links":{"self":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts\/1509"}],"collection":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1509"}],"version-history":[{"count":1,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts\/1509\/revisions"}],"predecessor-version":[{"id":1511,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=\/wp\/v2\/posts\/1509\/revisions\/1511"}],"wp:attachment":[{"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blockchain-society.science\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}