June 6, 2016
With the increasing momentum in blockchain adoption and the growing number of pilots with distributed ledger technology, the problem with its scalability becomes more important than ever before. While some professionals are raising concerns, Joseph Poon and Thaddeus Dryja, the developers behind the Bitcoin Lightning Network, may have a solution to the blockchain scalability problem.
Launched in 2013, the Lightning Network is a ‘decentralized system for instant, high-volume micropayments that remove the risk of delegating custody of funds to trusted third parties.’
Let's talk about the scalability problem for a moment, explained in the Lightning Network paper. The fact that each node in the bitcoin network must know about every single transaction that occurs globally may create a s ...