Lightning Network will destroy altcoins with low Commission?

In the past few months, transaction fees in the network of bitcoin rose to new record highs — more than $30, and some users expect that there will be a cheaper and less congested alternative to the most popular cryptocurrency.

The Commission has led to the fact that bitcoin is no longer used for certain types of payments, and we developed various solutions to this problem. Protocol Lightning Network is the most promising option.
What is Lightning Network?
Lightning Network is a system of smart contracts based on bitcoin blockchain, which allows a fast and inexpensive transaction between the two parties.

Technically Lightning Network built on payment channels, which was originally developed by bitcoin founder Satoshi Nakamoto. The basic idea is that two people put some bitcoins in the address multipoles, and then sign transactions that change the number of bitcoins that each party can get back. The payment channel can be closed by either party at any time, and the last signed transaction and updated balance sheets is something that will broadcast the blockchain of bitcoin.

In the end, Lightning Network allows users to make direct transactions with each other, and such operations are not broadcast to the whole blockchain and the whole world. Independently tracking their payments, both parties can avoid costly and time-consuming interactions with bloccano. If there is disagreement on the balances in the network, Lightning Network, either party can send data to the last valid state of its balance sheet, which was confirmed by the parties, the blockchain, and in this case it acts as an automated referee — incorruptible, and not changeable at someone else's request. In other words, no one can commit a deception or fraud figures.

Using the Lightning Network users can make transactions with anyone who is connected to their payment channel through multiple transit gateways. Lightning Network — the network of payment channels and no way to provide faster transaction between the two parties.

The main advantages of the Lightning Network are significantly lower tariffs, instant payments (faster than eight-ten confirmation from bitcoin), improved privacy because the transactions are not stored in a public registry (do not go into the blockchain).

Compare Lightning Network Althingi with low Commission
There are many altcoins that claim the role of a new bitcoin and offer lower transaction fees. The following is the average cost of transaction commissions some cryptocurrency at the time of preparation of the article:

Bitcoin: $22,99;
The Ethereum: $0,33;
Bitcoin Cash: $0,05;
Litecoin: $0,39.

While bitcoin has alternatives such Lightning Network needs to provide a much lower fee than that offered by altcoins. Previously, the two co-authored the original white paper Lightning Network, announced that the Commission have a scaling solution of the second level for bitcoin will go to zero.

In addition, transactions in the Lightning Network instantly accepted as valid, and this means that there is no need to wait for confirmation through a new mining unit.

Lightning Network and related systems, such as TumbleBit, provide greater anonymity, although in this area there is still work to do.

Perhaps comparing the bitcoin Protocol altcoins and Lightning Network with low fees, you should consider higher liquidity, lower volatility and relative longevity that offers bitcoin. Most people still prefer to use as money bitcoin, not altcoins, and therefore bitcoin will continue to thrive, despite the high fee.

The costs of opening channels Lightning Network
Conditional deficiency Lightning Network is that the user must open at least one channel to get started because it can not send the payment LN without the other party's network. This requires conducting regular blockchain transactions.

The usual transaction required to close the channel in case of a dispute, or to send additional funds through the channel with an address that is not associated with this host Lightning Network.

The good news: this transaction allows you to open a payment channel Lightning with the bitcoin user that received the payment. Thus, one of the ways in which users can connect to the network, — sending a bitcoin transaction, which in any case would be sent. That is, the additional advantage is the opening of the channel between the two parties. Payment is sent as usual, with transaction Commission, but future payments to Lightning Network are done without any cost.

One caveat of using Lightning Network is that some providers of bitcoin wallets could cover the initial fee of its users. Then, most likely, they will have to collect identifying information about its users to avoid opening the same subject to many different channels at the expense of the provider. And those who wish to remain anonymous, would still have to pay the fee.

Lower transactional Commission may be paid by the users and if they are willing to wait for inclusion of your transaction in a block more than usual. (Thus, those who are willing to wait longer to discover the Lightning channel at a lower price.)

It is also possible that litecoin will become a useful and inexpensive mechanism for setting payment channels LN on top of the bitcoin network. Lightning Network can be used to implement a kind of decentralized exchange between users that use nodes LN on multiple blockchains. If the user is already LN the channel opened in the network of bitcoin, then he can Finance it through a litecoin with the help of a mediator, who is running ends on top of both blockchains.

In the future it is also possible that a cheaper solution is to download the bitcoin network Lightning Network will be sydeny. This is similar to the above-described variant with litecoin, but the additional advantage is that saidonly are denominated in bitcoins.

For Lightning Network developed and other updates that should lead users of the Protocol the second level to the minimum interaction with bloccano bitcoin and more effective ways to reduce the commissions due to the outside of the blockchain certain types of payments (which also means a reduction in demand for space in blocks).

All of the block chain — the same constraints on the scaling
It is important to remember that all blackany faced with the same realities when it comes to the ability to process a certain number of transactions per second. Bitcoin does the biggest Commission, as it is the most reliable and longest existing cryptocurrency network.

According OnChainFX, in the last 24 hours (at the time of this writing) bitcoin miners raised $11 509 422 as transaction commissions. The second most profitable blockchain for miners from the point of view of such charges in the same period — Ethereum, where they earned $611 763. Other altcoins by transaction fees is not reached and $90 000.

The fee increase when the blockchain is gaining users and maintains a lower cost when working with a full node and there is no way to circumvent that reality. If too many people will switch to litecoin, to avoid the high transaction commissions of bitcoin, they will eventually have to switch to another blockchain, as the litecoin network becomes overloaded.

We saw the same scenario played out in the Ethereum network, where at the beginning of 2017 was presented extremely low fees and guaranteed terms of the transaction confirmation. Due to ICO and CryptoKitties transaction fees in Ethereum network increased from $0.01 to $0,71 to 14 December 2017.

What's the verdict?
While the Lightning Network Protocol is not running on the network of bitcoin, it is difficult to predict its impact on the position of cheaper altcoins. We need to wait and see how will develop this new network, especially from the point of view of the commissions, which are primarily required for configuring payment channels.

It is very likely that in the long term Lightning Network (or something like it) eliminate the need for a cheaper altonah, but it is difficult to even imagine how much time it will take. In the short term altcoins with low fees will provide very useful information — including, perhaps, to promote the development of the Protocol Lightning Network, the network of bitcoin.
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