Sok Cryptocurrencies Together With The Bitcoin Lightning Network
We wrapped upward the distributed systems seminar amongst ii to a greater extent than papers discussed lastly month.
The "SoK: Research Perspectives in addition to Challenges for Bitcoin in addition to Cryptocurrencies" paper appeared inwards 2015. Although the cryptocurrency scene has seen a lot of activity recently, this survey newspaper did non historic catamenia in addition to it is nonetheless a real goodness introduction to learning well-nigh the technical aspects in addition to challenges of cryptocurrencies. The newspaper starts amongst a technical overview of the cryptocurrency concept. Then it delves to a greater extent than into incentives in addition to stability issues. It observes that it is unclear "how stability volition live affected either inwards the destination Earth of no mining rewards or inwards intermediate states equally transaction fees decease a non-negligible source of revenue". It talks well-nigh possible attacks, including Goldfinger assault in addition to feather-forking, in addition to besides well-nigh stability of mining pools in addition to the peer-to-peer layer. Finally it besides covers around safety in addition to privacy issues.
"The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments" whitepaper is from 2016. Bitcoin has a real high latency, misfortunate scalability, in addition to high transaction fees, in addition to the lightning network provides an overlay solution to ease off these pains. To this end, the newspaper describes a secure off-chain solution for instant payments in addition to microtransactions amongst depression transaction fee. This video yesteryear Jackson Palmer describes the lightning network ideas real nicely. (I strongly prefer reading to watching/listening, but lately I am finding a lot of useful content on YouTube.)
The protocol builds on the basic concept of a pairwise payment channel. Two parties position aside an initial sum of Bitcoin into a multi signature transaction. Subsequently many updates to the allotment of the electrical current residuum tin give the sack live made off-the-chain but amongst the cooperation of both parties using a novel timelocked transaction, without broadcasting this to the chain. This is analogous to buying a Starbucks carte in addition to transacting amongst Starbucks pairwise amongst that card. A broadcast to the chain tin give the sack live done to redeem funds on the chain in addition to to unopen the channel. If either political party tries to cheat yesteryear broadcasting an quondam transaction Earth from the pairwise payment channel, the counterparty may cause got all the funds inwards the channel equally penalization afterwards it provides the latest multisig agreed Earth to the chain (within the on-chain dispute mediation window).
The lightning overlay network is in addition to thence formed yesteryear multihop routing over these pairwise payment channels. Even when A in addition to Z does non cause got a straight pairwise payment channel, it may live possible to build a multihop route from A to Z to usage intermediaries, traversing through several pairwise payment channels. While pairwise channels could live without a fee, the multihop intermediaries require a pocket-size transaction fee to cause got the incentive to participate.
The pairwise payment channels require to live extend amongst hashlocks to attain multihop transactions. Here is how this is done as explained inwards the Bitcoin wiki:
In social club for the multihop routes to piece of job in that place should live plenty cooperative participants online, each of which amongst plenty residuum to overstep the bucket from paw to hand. The repose is a path-finding exercise. With feasible paths present, similar to a source-side routing decision, you lot tin give the sack outset the lightning transaction. There has been a lot of piece of job on MANETs nether the names of intermittently connected networks in addition to delay tolerant routing. I wonder if around of them tin give the sack bring out applications hither (even though they were generally geometrical in addition to this is a non-geometrical network.) In practise though, the multihop network oft converges to a hub in addition to spokes model, amongst a well-connected fatty wallet intermediary.
The lightning network is besides useful for transacting securely across dissimilar blockchains, equally long equally all edges inwards the route back upward the same hash locomote to usage for the hash lock in addition to tin give the sack create timed locks.
The students liked how nosotros run the seminars. They said they were to a greater extent than actively engaged in addition to learned a greater bargain due to this format. But I intend nosotros tin give the sack improve. It would live overnice to acquire experts video-conference in addition to answer around questions. I intend many experts would live generous to spare twenty minutes to spare to answer around questions from smart well-prepared students.
The students besides mentioned that it would cause got been overnice to cause got around hands-on projects to accompany the seminars. We started a blockchain channel thence the interested students tin give the sack figure out around pocket-size projects they tin give the sack piece of job on in addition to collaborate.
2. What did I learn?
I didn't intend much of blockchains but I am fascinated to acquire that in that place are many challenging questions hither in addition to many goodness ideas/techniques. This is an surface area real suitable for doing distributed algorithms/protocols work, which I love. There is a require for developing to a greater extent than principled approaches in addition to well-reasoned in addition to verified algorithms/protocols.
I nonetheless intend the best ideas from these piece of job volition acquire borrowed in addition to used inwards to a greater extent than centralized (could live hierarchical or federated) systems for the sake of efficiency/economy in addition to scalability. That may live how these systems volition decease mainstream to millions in addition to fifty-fifty billions.
The "SoK: Research Perspectives in addition to Challenges for Bitcoin in addition to Cryptocurrencies" paper appeared inwards 2015. Although the cryptocurrency scene has seen a lot of activity recently, this survey newspaper did non historic catamenia in addition to it is nonetheless a real goodness introduction to learning well-nigh the technical aspects in addition to challenges of cryptocurrencies. The newspaper starts amongst a technical overview of the cryptocurrency concept. Then it delves to a greater extent than into incentives in addition to stability issues. It observes that it is unclear "how stability volition live affected either inwards the destination Earth of no mining rewards or inwards intermediate states equally transaction fees decease a non-negligible source of revenue". It talks well-nigh possible attacks, including Goldfinger assault in addition to feather-forking, in addition to besides well-nigh stability of mining pools in addition to the peer-to-peer layer. Finally it besides covers around safety in addition to privacy issues.
"The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments" whitepaper is from 2016. Bitcoin has a real high latency, misfortunate scalability, in addition to high transaction fees, in addition to the lightning network provides an overlay solution to ease off these pains. To this end, the newspaper describes a secure off-chain solution for instant payments in addition to microtransactions amongst depression transaction fee. This video yesteryear Jackson Palmer describes the lightning network ideas real nicely. (I strongly prefer reading to watching/listening, but lately I am finding a lot of useful content on YouTube.)
The protocol builds on the basic concept of a pairwise payment channel. Two parties position aside an initial sum of Bitcoin into a multi signature transaction. Subsequently many updates to the allotment of the electrical current residuum tin give the sack live made off-the-chain but amongst the cooperation of both parties using a novel timelocked transaction, without broadcasting this to the chain. This is analogous to buying a Starbucks carte in addition to transacting amongst Starbucks pairwise amongst that card. A broadcast to the chain tin give the sack live done to redeem funds on the chain in addition to to unopen the channel. If either political party tries to cheat yesteryear broadcasting an quondam transaction Earth from the pairwise payment channel, the counterparty may cause got all the funds inwards the channel equally penalization afterwards it provides the latest multisig agreed Earth to the chain (within the on-chain dispute mediation window).
The lightning overlay network is in addition to thence formed yesteryear multihop routing over these pairwise payment channels. Even when A in addition to Z does non cause got a straight pairwise payment channel, it may live possible to build a multihop route from A to Z to usage intermediaries, traversing through several pairwise payment channels. While pairwise channels could live without a fee, the multihop intermediaries require a pocket-size transaction fee to cause got the incentive to participate.
The pairwise payment channels require to live extend amongst hashlocks to attain multihop transactions. Here is how this is done as explained inwards the Bitcoin wiki:
- Alice opens a payment channel to Bob, in addition to Bob opens a payment channel to Charlie.
- Alice wants to purchase something from Charlie for thou satoshis.
- Charlie generates a random number in addition to generates its SHA256 hash. Charlie gives that hash to Alice.
- Alice uses her payment channel to Bob to pay him 1,000 satoshis, but she adds the hash Charlie gave her to the payment along amongst an extra condition: inwards social club for Bob to claim the payment, he has to render the information which was used to hit that hash.
- Bob uses his payment channel to Charlie to pay Charlie 1,000 satoshis, in addition to Bob adds a re-create of the same status that Alice position on the payment she gave Bob.
- Charlie has the master copy information that was used to hit the hash (called a pre-image), thence Charlie tin give the sack usage it to finalize his payment in addition to fully have the payment from Bob. By doing so, Charlie necessarily makes the pre-image available to Bob.
- Bob uses the pre-image to finalize his payment from Alice
In social club for the multihop routes to piece of job in that place should live plenty cooperative participants online, each of which amongst plenty residuum to overstep the bucket from paw to hand. The repose is a path-finding exercise. With feasible paths present, similar to a source-side routing decision, you lot tin give the sack outset the lightning transaction. There has been a lot of piece of job on MANETs nether the names of intermittently connected networks in addition to delay tolerant routing. I wonder if around of them tin give the sack bring out applications hither (even though they were generally geometrical in addition to this is a non-geometrical network.) In practise though, the multihop network oft converges to a hub in addition to spokes model, amongst a well-connected fatty wallet intermediary.
The lightning network is besides useful for transacting securely across dissimilar blockchains, equally long equally all edges inwards the route back upward the same hash locomote to usage for the hash lock in addition to tin give the sack create timed locks.
MAD questions
1. How tin give the sack nosotros amend the means nosotros run the seminar?The students liked how nosotros run the seminars. They said they were to a greater extent than actively engaged in addition to learned a greater bargain due to this format. But I intend nosotros tin give the sack improve. It would live overnice to acquire experts video-conference in addition to answer around questions. I intend many experts would live generous to spare twenty minutes to spare to answer around questions from smart well-prepared students.
The students besides mentioned that it would cause got been overnice to cause got around hands-on projects to accompany the seminars. We started a blockchain channel thence the interested students tin give the sack figure out around pocket-size projects they tin give the sack piece of job on in addition to collaborate.
2. What did I learn?
I didn't intend much of blockchains but I am fascinated to acquire that in that place are many challenging questions hither in addition to many goodness ideas/techniques. This is an surface area real suitable for doing distributed algorithms/protocols work, which I love. There is a require for developing to a greater extent than principled approaches in addition to well-reasoned in addition to verified algorithms/protocols.
I nonetheless intend the best ideas from these piece of job volition acquire borrowed in addition to used inwards to a greater extent than centralized (could live hierarchical or federated) systems for the sake of efficiency/economy in addition to scalability. That may live how these systems volition decease mainstream to millions in addition to fifty-fifty billions.
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