Basic Understanding
This will give you a basic understanding of the lightning network, how it works, and where exactly it fits in the Bitcoin ecosystem
Use cases for the Lightning Network
The lightning network is very new and some interesting use cases have come to the surface. It is definitely not for everyone and you need some technical expertise to get under the hood. Simply using it however is now quite simple.
Hands On
Quiz
This is short multiple choice quiz to cement the concepts we covered.
Disadvantages of the Lightning Network
Are we there yet?
Not really. Possibly the biggest disadvantage ascribed to the current state of the bitcoin lightning network is the lofty expectations from what is essentially a social experiment. It is not a fully operational bulletproof, foolproof, novice proof payment system … yet
The theory behind it looks good, but will the view change when realised into a real world solution?
The Maze
We think of the Lightning Network as sort of a web of channels which, once established, should theoretically allow for seamless transactions. However, there is no real-world data or simulation of how this will eventually play out. Variables such as capital cost & operational expense will have to be factored in somewhere by someone.
The “handy” Cap
A noticeable negative of the current network version is the concept of capped channels. This means the number of bitcoin stored in a wallet by the two parties upon establishing a channel is also the maximum.This configuration results in a situation where some users may have to choose between having liquidity within the Lightning Network channels or having liquidity on the main blockchain.
Back to the Future of Distributed Centralisation
Some people voice concern over the forming of ‘hubs’. The fear is that some nodes with a lot of capital will take a monopoly over that majority of transactions which will pass through. Some Bitcoin enthusiasts see this as further centralization of the network. There is however not much likeliness of such “hubs” making a substantial profit, and therefore no incentive.
These ideas are subjective and speculative propositions at best but reflect the real issues developers are aiming to solve.