Upgrade to Pro — share decks privately, control downloads, hide ads and more …

Bitcoin History and Lightning Network in Future - ligtning hackday hong kong 2019

Bitcoin History and Lightning Network in Future - ligtning hackday hong kong 2019

lightning hackday hong kong 2019

Takaya Imai

March 30, 2019
Tweet

More Decks by Takaya Imai

Other Decks in Technology

Transcript

  1. Bitcoin History
    and
    Lightning Network in Future
    5BLBZB*NBJ
    $PGPVOEFSBOE$50!6OJUFE#JUDPJOFST*OD
    -*()5/*/()"$,%":)0/(,0/(
    .BS

    View full-size slide

  2. My Profiles
    United Bitcoiners Inc. Co-founderˍCTO
    Frontier Partners LLC. CEO
    Mastering Bitcoin In Japanese, Chief Translator and Organizer
    The First of Detailed Crypto Technology Book in Japanese
    Contribution: 90% translated
    12th Printing
    Published: 14/Jul/2016
    Open Edition is also available.
    https://www.bitcoinbook.info
    Number of copies: 13,300

    View full-size slide

  3. Established: 25/Jan/2017

    View full-size slide

  4. http://www.unitedbitcoiners.com/blog/lnd

    View full-size slide

  5. https://www.arwen.io

    View full-size slide

  6. My Profiles
    United Bitcoiners Inc. Co-founderˍCTO
    Frontier Partners LLC. CEO
    Mastering Bitcoin in Japanese, Chief Organizer and Translator
    The First Japanese Book of Crypto Technology Details
    Printings: 12th
    Published: 14/Jul/2016
    Number of copies: 13,300
    Open Edition is also available.
    https://www.bitcoinbook.info

    View full-size slide

  7. My Profiles
    Back ground
    Ph. D.
    Elementary Particle Theoretical Physics
    Chief Organizer of Off-chain Academy
    the First Lighting Hackathon in Japan, 29-30 Sep 2018
    Kakaku com
    Search Engine Development & Sever Cluster Management, Big Data Processing, Machine
    Learning, Image Recognition
    Data Tower Inc. CEO

    View full-size slide

  8. My Profiles
    Back ground
    Ph. D.
    Elementary Particle Theoretical Physics
    Chief Organizer of Off-chain Academy
    the First Lighting Hackathon in Japan, 29-30 Sep 2018
    Kakaku com
    Search Engine Development & Sever Cluster Management, Big Data Processing, Machine
    Learning, Image Recognition
    Data Tower Inc. CEO

    View full-size slide

  9. It is like lightning loop.
    If onchain tx is sent,
    lightning btc is charged
    automatically.

    View full-size slide

  10. Questions
    What kind of Lighting Products in Japan?
    What’s next 1-2 year about LN wallet?
    What is needed to increase lightning engineers?
    What kinds of LApps are killer app?
    How does we increase nodes and liquidity for long time
    aspect?

    View full-size slide

  11. What kind of
    Lighting Products
    in Japan?

    View full-size slide

  12. What’s next 1-2 year about
    LN wallet?

    View full-size slide

  13. History of
    Bitcoin and Lightning
    Aug 2008, bitcoin proposed
    Jan 2009, bitcoind
    2009, Non-Custodial Wallet(Cold
    wallet)
    2010, Exchange(Mt. Gox etc.)
    2011, Custodial Wallet
    (blockchain.info etc.)
    2014, Non-Custodial
    Wallet(Trezor, bread wallet etc.)
    Fed 2015 LN proposed
    Middle 2015, LN node(testnet)
    2017-2018, Non-Custodial LN
    Wallet (eclair wallet, bl wallet etc.)
    2018, Exchange(zigzag etc.)
    Early 2019, Custodial LN
    Wallet(Blue Wallet etc.)

    View full-size slide

  14. What’s next 1-2 year about
    LN wallet?
    Non-Custodial Wallet for general people is important to save money
    but technologies are not enough for now.
    Custodial Wallet is dangerous but this is convenient to provide UI for
    general people to use easily for now.
    Usability of Non-Custodial Wallet keeps on being improved more and
    more but it needs more time.
    Payment Channel is difficult to understand for general people, “why
    does it need much time to create?”. “Lightning Factories” solves it.
    AMP solves stability and upper limit amount of payment.

    View full-size slide

  15. What is needed to increase
    lightning engineers?

    View full-size slide

  16. Layer Structure of
    Lightning and Internet
    Blockchains
    Lightning Payment
    Channel
    Routing Algorithm
    Atomic Multi-Path
    Payments(AMP)
    ???
    Physical Layer
    Data Link Layer
    Network Layer
    Transport Layer
    Application Layer
    Sphinx Presentation Layer
    Lightning Network Internet
    HTLC
    Session Layer

    View full-size slide

  17. What is needed to increase lightning
    engineers?
    OSI reference model is not the same as structure of internet completely but Application
    Layer is not enough.
    One of protocols of Application Layer is HTTP. HTTP is very simple and it is not needed to
    know details of data binary structure and TCP/IP. It needs just IP address, port, HTTP
    methods.
    Today, lightning engineer has to know much knowledge about LN. It is big hurdle. Usual
    engineers should not know details to develop service.
    Application Layer is like a package of protocols.
    Selection of L2 penalty and eltoo.
    Selection of binary data structure(sphinx, invoice based or direct payment).
    Selection of routing algorithm
    “Lightning Factories” is good for this package protocol because they have to know
    payment channel if it takes much time to create payment channel.

    View full-size slide

  18. What kinds of LApps are
    killer app?

    View full-size slide

  19. https://www.youtube.com/watch?v=c8NvwWH40Ys

    View full-size slide

  20. What kinds of LApps are
    killer app?
    Small Payments are automatically executed without the
    user's awareness. Instead of sending to try to remit, it is
    executed as a result.
    It is necessary to secure so that it is not executed
    arbitrarily.
    Lightning is very familiar with automation.
    Rule based automation
    Machine Learning based automation

    View full-size slide

  21. How does we increase nodes
    and liquidity for long time aspect?

    View full-size slide

  22. How does we increase nodes
    and liquidity for long time aspect?
    Liquidity depends on the number of nodes and channels, channel
    capacity and whether connect with nodes which have many channels.
    This is the case of the first growing era.
    For now, it is possible to collect data of nodes and channels and store
    in one node.
    This is not a static network so it is difficult to decide best payment
    routes but it is almost okay for now.
    Liquidity service such as making inbound channel is also available.
    After AMP and rebalancing etc. to grow liquidity are released?

    View full-size slide

  23. https://twitter.com/BrickstringTech/status/1108968419188068352
    Rebalancing

    View full-size slide

  24. How does we increase nodes
    and liquidity for long time aspect?
    There is no incentive for general people to join LN.
    For now, only geeks. Curiosity driven.
    Fee policy is almost 0 satoshi.
    base fee is 1 satoshi and fee rate is too low.
    Fee policy is set by hand.
    Upper limit of nodes shall be about 10000 nodes as much as bitcoind.
    Fee policy should be set automatically by investigating P2P network.
    Rule based approach
    Machine Learning approach
    Fee is very big incentive to join.
    Backup service and watch tower service are also incentive but this is important after nodes
    are growing.

    View full-size slide

  25. Recent Research about Fee
    https://blog.bitmex.com/the-lightning-network-part-2-routing-fee-economics/

    View full-size slide

  26. 3FGFSFODFT
    w 1SFTFOUBUJPOT
    w IUUQTXXXTMJEFTIBSFOFUMBXNOQSFTFOUBUJPOT
    w IUUQTXXXTMJEFTIBSFOFUUBLBZBJNBJ
    QSFTFOUBUJPOT
    w IUUQTTQFBLFSEFDLDPNUBLBZBJNBJ
    w -JOLFEJO
    w IUUQTXXXMJOLFEJODPNJOUBLBZBJNBJB

    View full-size slide

  27. Lightning Network Details
    https://www.slideshare.net/takayaimai/lightning-network-in-tel-aviv-israel

    View full-size slide