Many of them are insured nd keep the majority of the bitcoin stored offsite to prevent any bitcoin problems. But once you hand them over to someone else, such as an exchange or wallet, for storage, then it’s up to that organization’s cybersecurity systems and practices to keep the currency safe. So, when you have a channel non-initiator, maybe you have more of an incentive to force close than to mutual close because this way it’s going to be the channel initiator that will pay the fees. To understand it in a better way how Facebook’s cryptocurrency project Libra can have an impact on the whole Blockchain Crypto Exchange industry, you need to take a deep dive into the roots. If there is high traffic, it might take more time to withdraw. Wouldn’t it be great if you could trade on a realistic-looking system without having to take any chances? So why wouldn’t it transition to it being 50/50 split or something? Why is the fee for the commitment transaction paid by the opener of the channel? Mike Schmidt: Speaking of some of those improvements, the first item we noted from the summit was Reliable transaction confirmation, which was a discussion that includes package relay, v3 transaction relay, ephemeral anchors, cluster mempool, and a bunch of other topics about getting your transactions relayed and mined.
So, there was an in-person meeting of some of the Lightning Network developers in New York, and Carla posted to the Lightning-Dev mailing list the summary of a bunch of the discussions that occurred. Greg, folks may be familiar with some of your further background working on Bitcoin, but you’ve been doing some Lightning work recently. 261 was about the Lightning Network Summit notes. Essentially what they’re saying is that in high-demand periods where you might have to pay 10x as much in transaction fees as normal, the Ethereum network isn’t doing 10x as much work. And so you really have to care that there are ways of paying fees and getting in blocks properly, which there really isn’t that well right now. And please just give me a signature where you won’t pay anything and I’m going to pay that fee so that we can RBF the mutual cost transaction”, which is also a good improvement because before that, I don’t think we had any way to do RBF right now. I was looking through the notes and I don’t know if we want to get into the details of each one of these, but some things that stuck out to me from the notes were, “In what way does it not fit LN as it’s currently designed?
LN relies on the penalty a lot to kind of enforce good behavior, when I think it’s not as necessary in this imagined future with an improved mempool. Although I will tell you this: One economist did talk about the future of Bitcoin before Bitcoin even existed. So, this is basically a channel that cannot be used any more, there’s nothing urgent to do on it apart from closing, so having even a few more round trips is just not at all an issue. So, especially with something with symmetric, you basically have to worry about when your transaction hits the mempool and there’s no penalty. The goal is to just get to a point where the commitment transaction doesn’t pay any fee so that everything is simpler. And this way, we’ll be able to completely deprecate the older two versions at some point. So, since our goal is rather to go in the direction of removing update fee entirely and using zero-fee commitment transactions, we’re just not going to bother changing how the fee is paid before we get to that point. So, 바이낸스 (clicking here) since we all want to move to taproot, and this was one of the blocking points for taproot, that we didn’t have a good way of closing taproot channels and exchanging the nonce securely beforehand, I think everyone will just implement that version.
Mike Schmidt: You mentioned in your outline of the current way that closing is done that there was a tweak to make it down to one-and-a-half rounds of exchange, I believe. It sounds like this simplified protocol is two rounds. Note that we did not employ any kind of system freezing to avoid destroying or altering evidence like they do in a forensical analysis of a compromised system. In turn, this also means that you don’t need to have a grasp of technical analysis – which is the art of reading charts. This anonymity and lack of centralized regulation, however, means that tax evaders, criminals, and terrorists can also potentially use cryptocurrencies for nefarious purposes. Neither the basic, nor the advanced versions are bound to be easy to use for complete beginners. The NFT marketplaces are decentralized, so to carry out the transactions and the auctions without any interruptions, to verify and other causes smart contracts are developed.