Written by 12:30 am Bitcoin

Can Bitcoin Overcome Price Of Anarchy – Bitcoin Magazine

This is an opinion editorial by Shinobi, a self-taught educator in the Bitcoin space and tech-oriented Bitcoin podcast host.

The Lightning Network as a payment routing network has many similarities with the internet itself. You must be connected to the network, payments are routed from one source node on the network to a destination node just like data packets on the internet and it requires an unbroken connection from the source to destination. It also has one massive difference — the requirement for liquidity. On the internet, as long as bandwidth is available (i.e., the pipes are not “clogged”), you can pass an infinite amount of information along a route as long as you have enough time to wait for it to get through. Lightning channels, however, can be depleted, as they require actually moving money from one side of a channel to another in order to route a payment, and eventually they will run out of money on one side and push all of it to the other.

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