Bitcoin doesn’t scale.
That shouldn’t be learn to imply that Bitcoin, the asset, or alternative ways to use it don’t scale. However Bitcoin’s blockchain doesn’t scale. This can be a basic and simple actuality of its structure. We’ve identified this definitively for the reason that Blocksize Wars (nicely, Bitcoiners have identified this). Some folks, equivalent to James A. Donald — an nameless cryptographer who was the primary particular person to answer to Satoshi on the cryptography mailing listing — and Hal Finney himself, knew this from the very starting.
It isn’t doable for each particular person on Earth to should obtain, confirm and retransmit the transactions of each different particular person on the planet. The notion that this can be a viable thought is definitely fairly insane.
However that is basically how Bitcoin works. Its safety and integrity is simply assured by way of the method of each person receiving and verifying the exercise that’s processed on the blockchain. So how will we reconcile these two contradictory issues?
We discover ingenious methods to decide to transactions with out utilizing the blockchain, basically “caching” them till an acceptable time to truly interact in ultimate settlement on-chain.
The Lightning Community is the primary and most mature instance of a system designed to perform this reconciliation in a decentralized trend.
Lightning has not precisely developed as we hoped it could — a pure end-user funds community — nevertheless it has undeniably demonstrated itself as the primary viable second-layer scaling answer for Bitcoin. It would wind up changing into extra of an mixture settlement layer, or a community extra appropriate for companies and providers than finish customers (although not inconceivable for them to make use of), however it’s so far a powerful success.
It has been an absolute pleasure and honor to behave because the Editor-in-Chief for this problem, as this subject is one thing very near me personally. Bitcoin is one thing that should scale with a view to create the constructive and impactful change that I need to see it create.
I’d wish to thank all of the contributors and group members who’ve made this problem occur, and, most significantly, Aaron van Wirdum’s stewardship and assist in the course of the means of passing the torch to me.
I hope you all get pleasure from gaining a greater understanding of one of the essential tasks on this house since Bitcoin itself was launched.
Shinobi
Don’t miss your likelihood to personal The Lightning Challenge — that includes an unique interview with Lightning co-creator Tadge Dryja. It dives deep into Bitcoin’s strongest scaling layer. Restricted run. Solely accessible whereas provides final.
This piece is the Letter from the Editor featured within the newest Print version of Bitcoin Journal, The Lightning Challenge. We’re sharing it right here as an early take a look at the concepts explored all through the complete problem.
