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. It is a basic and simple actuality of its structure. We’ve recognized this definitively because the Blocksize Wars (properly, Bitcoiners have recognized this). Some individuals, reminiscent of 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 potential 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 essentially how Bitcoin works. Its safety and integrity is barely assured via the method of each person receiving and verifying the exercise that’s processed on the blockchain. So how can we reconcile these two contradictory issues?
We discover ingenious methods to decide to transactions with out utilizing the blockchain, basically “caching” them till an applicable time to really interact in last settlement on-chain.
The Lightning Community is the primary and most mature instance of a system designed to perform this reconciliation in a decentralized vogue.
Lightning has not precisely developed as we hoped it could — a pure end-user funds community — however it has undeniably demonstrated itself as the primary viable second-layer scaling answer for Bitcoin. It would wind up turning into extra of an mixture settlement layer, or a community extra appropriate for companies and companies than finish customers (although not unattainable 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 subject, as this matter is one thing very near me personally. Bitcoin is one thing that should scale with a purpose to create the constructive and impactful change that I need to see it create.
I’d prefer to thank all of the contributors and crew members who’ve made this subject occur, and, most significantly, Aaron van Wirdum’s stewardship and assist in the course of the strategy of passing the torch to me.
I hope you all take pleasure in gaining a greater understanding of probably the most necessary tasks on this area since Bitcoin itself was launched.
Shinobi
Don’t miss your chance to own The Lightning Issue — that includes an unique interview with Lightning co-creator Tadge Dryja. It dives deep into Bitcoin’s strongest scaling layer. Restricted run. Solely obtainable whereas provides final.
This piece is the Letter from the Editor featured within the newest Print version of Bitcoin Journal, The Lightning Difficulty. We’re sharing it right here as an early have a look at the concepts explored all through the total subject.