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Bitcoin Lightning Network Updates 2019: Advancements and Forecast

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The popularity and commercial use of Bitcoin Lightning Network has increased at a very accelerated pace during the last few months. The reason is the improvement of the network day by day and increasing convenient and secure way of the transaction between consumers through this network. Being a peer-to-peer connection, this network gives features that even if two consumers are not directly connected to each other through a channel, any consumer on the network can do the transaction with another consumer on the network.

 

Let us have a glance on 15 new additions in Bitcoin Lightning Network in the last few months and also what could be the new features to come:

 

1. Fast payment:

Now, the payment done on the lightning network is so paced and frequent. You can compare this speed of payments with the speed at which data is transferred on the internet between connections. This has reduced the scalability problem of bitcoin for surety. No. of payments per second in the network has been increased considerably.

 

2. No restriction in the duration of the open network:

There is no any type of timeout kind of thing between the lightning network. That means that if both consumers wishes, the channel between them would be open for an indefinite time. Their channel will not be closed after a time and hence cost and time required to closing and restarting the channel has been minimized.

 

3. The enforcement of third-party for security:

Earlier, if in a channel, one consumer who wanted to steal money, closes channel; the second consumer has to report within a given time period to prevent the theft. The network is now planning to enforce third-part which wouldn’t be given any control over transactions but only performing the above function.

 

4. More secure routing in the network:

Unlike normal routing, in this network, a peer has only information of the previous peer and the next peer. A peer doesn’t have the knowledge of the originating and destination peer of the network in  Bitcoin Lightning Network. Thus, making it a more secure mode of payments and fund transfers.

 

5. Support more kind of payments:

Bitcoin Lightning Network now supports more kind of frequent payments, thus, there are only a few loads on Blockchain payment channel. Now, blockchain payment has only to take care of payments like closing and opening of channels of payments. Thus reducing extra overheads from the blockchain channel.

 

6. Functionality to close channel whenever desired:

Unlike regular connection, where there is a fixed timeout to close the channel, in this network, now two parties if agreed to each other can cancel the channel whenever they want. So, they don’t have to wait for unwanted time to close the channel even if the fund transfer is completed, they can close it immediately after mutual agreement.

 

7. Payment without invoice:

With this new feature, payment can be funded from one consumer to other without creating the invoice for the payment first. This new feature creates a fast streaming payment of funds. Now, the need of creating an invoice ahead of the transfer of fund which makes the fund transfer slower is non-relevant.

 

8. The functionality of single-funded channel:

Suppose a consumer wants to pay second consumer and the payment is uni-directional, then there is no need of another consumer to add fund in the channel and just a single-funded channel can be created with only first consumer participating and adding fund in the channel.

 

9. Payments across different blockchains:

Now, the lightning network allows payments across various different routes of blockchain provided they have same hash locking. Hence, the payment can be done from one channel of blockchain to channels of another blockchain only if they have the same hash code and locking.

 

10. No trust with third-party institutions:

The channel is completely shared between two consumers and no other third party has any access over the funds during the process of the transaction. This gives more security and safety to the fund transfer process done in bitcoin lightning network channel.

 

11. Provision of conditional payment:

Depending upon the result of some payment, now a probabilistic model of payment can be performed. This feature is known as sub-satoshi kind of payment. For example, A created a 1-satoshi kind of payment and pay B 0.3 satoshi with an odd of 10-to-3. This means that 70% of the time, A pays him 0 satoshis whereas 30% of the time, A pays 0.3 satoshis.

 

12. Less transaction fee:

Bitcoin is aiming to capitalize on small stores also. Hence, this network would cost a very little transaction fee, perhaps the least for any kind of transaction of funds. Hence, it could be used for daily purposed also like paying for restaurants, stores etc.

 

13. More Anonymity:

It will be impossible to track the payments completed through lightning channel network as a major part of these transactions take place completely isolated of the main channel of the blockchain.

 

14. Bi-directional fund channel:

For the very first time after the evolution of bitcoin, the funding has now become of two-sides. The lightning channel of bitcoin supports bi-directional fund channel.

 

15. Decentralized network:

Early testing of the bitcoin lightning network depicts that it is possible to have a decentralized network above the layer of blockchain transaction resulting to transfer funds from one peer to another peer even in multiple hops.

 

However, there are various still shortcomings. Bitcoin is aiming for various changes and upgrade in its technology to provide a more convenient and secure channel above the layer of the payment channel of the blockchain, thus increasing the scalability of the bitcoin payment. Let us also a brief glance at some upcoming features that the lightning network aims at:

 

1. Evolution of hubs like nodes:

A node similar to a hub in a network which would finally collect more than one payments of one or more peers would make a strong centralized network.

 

2. Reduce the complexity of the channel:

In the present time, the channel is very complexed. Several attempts are made by the bitcoin to make it a little bit simpler.

#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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