Bitcoin is currently working on the implementation of a lightening network which will be a powerful component of scaling. However, Bitcoin lacks the tools that Dash has to make it a truly good experience and decentralized. This is an opportunity for Dash.
The issue with the lightening network as currently envisioned is the problem:
Routing: Payment channels are bidirectional between two parties. This means when A and C want to transact, but there is no direct link between them, they will have to route between a third party (B) to complete the chain A -> B -> C.
The problem is that routing is very complex issue and there does not seem to be any solution to do it in a decentralized way. Unless you know the entire network topology it will be hard to find a path in the network between distant nodes. Not even counting the fact each node in the chain must have at least the amount you sending as collateral or else that chain cannot be used. The consequence of this will be centralized payment hubs will form. The reason being that the more centralized it is the less routing issue and less topology needs to be known and less fees there will be.
Where is the Dash opportunity? Dash can turn every Master Node into a payment channel utilizing the 1000 DASH collateral for the Master Node as payment channel collateral. This will mean that the Dash Master Node system can become the premier hub taking place of what a centralized hub would provide in bitcoin. The Dash Master Nodes with 1000 DASH collateral will provide a good amount of liquidity for payment hub transactions (transactions > 1000 will have to be broken up into several distinct transactions).
This will make Dash more decentralized than bitcoin and will make Dash's use of the lightening node technology superior. In implementation of the wallet, the wallet would setup bidirectional payment channels with 2-3 master nodes and that would be the users lightening access to the network. Each masternode would in turn create 2-3 channels to other masternodes. And through this you can see there is a connected network of nodes with multiple routes to each node (even if a node goes offline).
This is a Dash opportunity that I hope the community will see the potential of and implement as it could propel Dash forward.
The issue with the lightening network as currently envisioned is the problem:
Routing: Payment channels are bidirectional between two parties. This means when A and C want to transact, but there is no direct link between them, they will have to route between a third party (B) to complete the chain A -> B -> C.
The problem is that routing is very complex issue and there does not seem to be any solution to do it in a decentralized way. Unless you know the entire network topology it will be hard to find a path in the network between distant nodes. Not even counting the fact each node in the chain must have at least the amount you sending as collateral or else that chain cannot be used. The consequence of this will be centralized payment hubs will form. The reason being that the more centralized it is the less routing issue and less topology needs to be known and less fees there will be.
Where is the Dash opportunity? Dash can turn every Master Node into a payment channel utilizing the 1000 DASH collateral for the Master Node as payment channel collateral. This will mean that the Dash Master Node system can become the premier hub taking place of what a centralized hub would provide in bitcoin. The Dash Master Nodes with 1000 DASH collateral will provide a good amount of liquidity for payment hub transactions (transactions > 1000 will have to be broken up into several distinct transactions).
This will make Dash more decentralized than bitcoin and will make Dash's use of the lightening node technology superior. In implementation of the wallet, the wallet would setup bidirectional payment channels with 2-3 master nodes and that would be the users lightening access to the network. Each masternode would in turn create 2-3 channels to other masternodes. And through this you can see there is a connected network of nodes with multiple routes to each node (even if a node goes offline).
This is a Dash opportunity that I hope the community will see the potential of and implement as it could propel Dash forward.
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