EB80 – Joseph Poon & Tadge Dryja: Scalability And The Lightning Network

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Since Gavin Andresen's proposal to increase the Bitcoin block size, how Bitcoin can scale to accommodate higher transaction volumes has been heatedly debated among developers. One of the most promising long-term options to allow near infinite scalability is the Lightning Network. Joseph Poon and Tadge Dryja, the co-authors of the whitepaper, joined us for a discussion of scalability and how the lightning network could allow massive numbers of off-chain transaction in a trustless way.

Topics covered included:
Why Bitcoin has a scalability problem
How payment channels work and the architecture of the Lightning Network
Why the Lightning Network would still require a block size increase
How transaction fees would work in the Lightning Network
How the Bitcoin blockchain would take on a court-like function to ensure honest off-chain behavior
The risks and downsides to the Lightning Network

Links mentioned in this episode:

Gavin Andresen - Why Increasing the Block Size is Urgent: http://bit.ly/1Blccfj
Mike Hearn - The Capacity Cliff: http://bit.ly/1Ap8NRP
Mike Hearn - Crash Landing: http://bit.ly/1HrOhNd
Rusty Russell - Series on the Lightning Network Parts 1-4: http://bit.ly/1F54zKo, http://bit.ly/1Ap7LVQ, http://bit.ly/1Ap7Pos, http://bit.ly/1PH8xnM
Lightning Network Whitepaper: http://bit.ly/1Symmnu
Lightning Network website: http://bit.ly/1Ap8Xsj

Sponsors:

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Show notes: http://epicenterbitcoin.com/podcast/080
SoundCloud:   / eb-080  


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