Bitcoin doesn’t scale.
That shouldn’t be learn to imply that Bitcoin, the asset, or other ways to use it don’t scale. However Bitcoin’s blockchain doesn’t scale. It is a elementary and simple actuality of its structure. We’ve recognized this definitively for the reason that Blocksize Wars (nicely, Bitcoiners have recognized this). Some individuals, equivalent to James A. Donald — an nameless cryptographer who was the primary particular person to answer to Satoshi on the cryptography mailing checklist — 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 just assured by way of the method of each consumer receiving and verifying the exercise that’s processed on the blockchain. So how will we reconcile these two contradictory issues?
We discover creative methods to decide to transactions with out utilizing the blockchain, basically “caching” them till an applicable time to truly interact in remaining settlement on-chain.
The Lightning Community is the primary and most mature instance of a system designed to perform this reconciliation in a decentralized style.
Lightning has not precisely advanced as we hoped it could — a pure end-user funds community — nevertheless it has undeniably demonstrated itself as the primary viable second-layer scaling resolution for Bitcoin. It’d wind up changing into extra of an combination 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 convincing success.
It has been an absolute pleasure and honor to behave because the Editor-in-Chief for this concern, as this matter is one thing very near me personally. Bitcoin is one thing that should scale so as to create the constructive and impactful change that I wish to see it create.
I’d wish to thank all of the contributors and workforce members who’ve made this concern occur, and, most significantly, Aaron van Wirdum’s stewardship and assist throughout the means of passing the torch to me.
I hope you all get pleasure from gaining a greater understanding of some of the necessary tasks on this area since Bitcoin itself was launched.
Shinobi
Don’t miss your likelihood to personal The Lightning Difficulty — 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 Difficulty. We’re sharing it right here as an early have a look at the concepts explored all through the complete concern.
