A few days ago a sturdy by Diar (a company that mostly gives the analysis on various stories within the digital currency industry globally) revealed that the lighting network is literally not reliable for routing a payment as first believed.
The lighting network ideally is a layer payment protocol that is meant to solve all problems of Bitcoin scalability. It allows low-cost, scalable, and almost instant transactions between parties. The crypto market very well accepted the protocol when it was released with a mind of potential for bitcoin scalability.
However, experts as well as those who are in the know such a Jonas Schnelli, Bitcoin core founder and Peter Todd, core developer contributor, have all slammed the report.
The Lighting Network, Work in Progress
Basically, the much blockchains are busy the transactions as well get slow leading to backlogs that are charged highly by miners. The agenda of the lighting network is to speed up this blockchain with scalability issues.
Lighting network will involve an interaction of two parties on a payment channel of their own to mean not all the transactions will be recorded immediately on the blockchain but only when that channel is closed.
Since the alpha release in January last year, lighting network has taken significant steps to make sure for an operation as a second-layer protocol for payment. Obviously, that takes time and that is the reason the whole process has been steady.
Despite the slow nature the lighting network is taking, many steps have been achieved from the first physical purchase on lighting network whereby a Reddit user had purchased in January a VPN Router to the big milestone again on March 15 this year when lighting labs made a release of the first bitcoin Mainnet-ready. But surprisingly all these forward steps came with warnings and disclaimers.
The Sturdy Suggestion an Overshot
The report by Diar seems like an overshot in the fact that they are talking more about a finished process when in reality the lighting network is in its beta testing. What they are suggesting to be met is beyond lighting network at least for now, in fact, they are questing why LN can’t run when it has even not started to walk yet.
The report points out that “the reliability of routing a payment successfully still is low.” It points out the low amounts transacted on the channels as proof for payments problems stating that on average a node has four open channels and more with a capacity of $20 on average for each. According to the report, the success rate is 1% for a payment of less than $200.
Experts are of a Different Opinion
Experts such as lighting labs co-founder, Elizabeth Stark referred to the report as “bullshit.” Bitcoin core developer, Peter Todd called it “dumb” stating that it is still in beta and slowly channel amounts will increase as the developers made it public for users to have channels with small amounts.
The Bottom Line
The lighting network is work in progress and despite the fact that there might be a failure for large amounts, the information from developers has been there and just maybe a matter of time before it hits running.