Is Bitcoin’s Lightning Network Walking towards Centralization?

Is Bitcoin’s Lightning Network Walking towards Centralization?

According to a paper namely ‘’Lightning Network: a second path towards centralization of the Bitcoin economy’’ released recently uttering that lightning has an ‘’unequal wealth distribution’’ with a smaller percentage of nodes on the network respectively accumulating a larger proportion of bitcoin. Developers along with researchers have been attempting to spot holes in the network with an eye to making lightning sturdier.  Bitcoin’s lightning network is walking along the way to centralizations which is prone to attacks. According to researchers, a small number of nodes are controlling a large percentage of funds which keeps the network at stake. It is thought that deducting hubs leads to the collapse of the network into many components.  But the way towards centralization is fleeting and developers are highly attempting to make the lightning easier for operators.

Emergence of middlemen

A payment in lightning network needs to go through several nodes to reach its destination. A number of nodes inactively take place on the brink of the network for sending and receiving a payment on the contrary to that ‘’routine nodes’’ in the middle are performing the heavy lifting of passing payments across the network. A smaller portion of intermediary nodes are commencing to shepherd a higher percentage of payments.

Deducting obstacles

Christian Decker, a lightning engineer at Blockstream, said they are trying to lower the obstacles in the way of using a routine node in the network. And it’s not wondering more casual users aren’t running routine nodes on the network. Even it is not wondering to Decker that a number of stable nodes are run by few tech- savvy people. According to him, to achieve their goal, a hobbyist with sufficient knowledge has to set up a node and actively compete with the other operators in the network.

Instigation to harden

Very recently a paper released by a researcher saying about the process of executing a ‘’congestion attack’’ on the lightning network which makes users think and creates problems in sending payments. According to the paper the disruption of the lightning network can be possible by locking most of its liquidity using less than half a bitcoin. This imagined attack costs only about $4,000 to disrupt the network. It is assumed that the research makes instigation to harden the payment system. Maybe, the progress can come through publicly discussing both upsides and downsides of the protocol and the network.

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