In the constantly evolving landscape of digital communication, privacy and security have become paramount. Enter Cipherchat, a new player in the field of private messaging. This web application stands out by harnessing the power of Bitcoin's Lightning Network. What sets it apart is not just its use of cutting-edge technology but also the option for users to self-host, offering an unprecedented level of control and privacy.
How Cipherchat Functions
Cipherchat's operation hinges on the innovative use of the Lightning Network. Users connect their Lightning node to the app through Lightning Node Connect (LNC), utilizing a pairing phrase from the Lightning Terminal. This process establishes an end-to-end encrypted connection between the user's node and the web app, facilitated by an LNC Mailbox relay proxy server. The entire architecture of Cipherchat is open-source, encouraging transparency and community involvement. Communication occurs through keysend payments, each carrying a message, ensuring a secure and private exchange of information.
Upholding Privacy and Security
At its core, Cipherchat prioritizes privacy. All messages are designed to be accessible only to the sender and recipient, making interception by third parties virtually impossible. The app also employs robust security protocols, including a user-created password that encrypts data stored locally on devices. This approach to security underscores Cipherchat’s commitment to protecting user information.
Getting Started with a Lightning Node
For those new to the Lightning Network, setting up a node is straightforward. Users can opt for plug-and-play solutions like myNode, Start9 Embassy, or Umbrel, or choose cloud-based services like Voltage for a hardware-free experience. These platforms offer intuitive interfaces for installing necessary software like the Lightning Terminal, simplifying the process of joining the Lightning ecosystem. In fact, Voltage abstracts away Lightning Terminal and shows the user their LNC pairing phrase right within the Voltage app.
Installing and Using Cipherchat
Installation is a breeze – users can add Cipherchat to their devices directly from their browser, integrating it seamlessly into their daily digital routine. The app is kept up-to-date through simple page refreshes, ensuring users always have the latest version. Requirements are minimal, with standard browser features like Service Workers, Web Assembly, Local Storage, and IndexedDB being sufficient for running the app.
Cipherchat's Home Page
Innovative Features for Enhanced Experience
Cipherchat incorporates several features to enhance the user experience. Its spam protection mechanism is noteworthy, leveraging the inherent 'proof-of-work' of setting up a Lightning node and the costs associated with messages to deter spam. Users can start conversations easily with just another node’s pubkey and explore public nodes through platforms like LN+'s Explorer.
Optimal Usage and Technical Insights
For an optimal experience, it’s recommended to open a direct channel with conversation partners, especially for lengthy interactions. This setup improves performance, reliability, and can even be cost-effective. However, the app also caters to casual use, with small routing fees for shorter conversations. Users should be aware of potential message failures due to network connectivity and liquidity issues, as well as a default character limit of 300 to accommodate network constraints. The character limit can be increased manually by the user if they know they have a shorter route to their destination.
Self-Hosting and Compatibility
For the tech-savvy, Cipherchat offers self-hosting options, detailed in their GitHub repository. Currently, the app is tailored for LND and is not compatible with Core Lightning, but it stands interoperable with other Lightning messaging apps that adhere to established standards.
Community and Development
Cipherchat is the brainchild of developer secondl1ght, a testament to the innovative spirit of the Bitcoin community. Users can stay updated on developments and seek support through various channels, including Telegram, X (Twitter), and GitHub.
Final Thoughts
Cipherchat represents a significant step forward in the realm of private, secure messaging. By leveraging the Lightning Network, it offers a unique blend of privacy, security, and user control. Whether you're a seasoned Bitcoin enthusiast or new to the world of Bitcoin, Cipherchat offers a compelling platform for secure, private communication in the digital age.
When working within LN+, you might encounter a situation where you're attempting to open a channel with a node to which you're already connected, or with which you're in the process of connecting through a Liquidity Swap or Pool Credit Transaction. To prevent the creation of duplicate channels, LN+ has introduced an advanced warning system. This system will alert you and prompt a reconfirmation of your action before finalization. Here are the specific scenarios where you will receive warnings:
Example of warning about an existing channel within Liquidity Swaps during application. This warning is followed by a pop-up confirmation.
Liquidity Swaps
You get a warning in during application to a liquidity swap:
If you already have an active channel with the node from which you're about to receive a channel.
If you already have an active channel with the node with the node you're about to commit to open a channel to.
If you have a pending Liquidity Swap with the node from which you're about to receive or with whom you're about to open a channel.
If you have a pending Pool Credit Transaction with the node from which you're about to receive or with whom you're about to open a channel.
Example of a warning about an existing channel within the Pool when creating a new Credit Transaction.
Liquidity Pool
You get a warning in the Liquidity Pool when creating an offer (aka credit transaction):
If you already have an active channel with the node to whom you're about to offer a channel.
If you have a pending Liquidity Swap with the node to whom you're offering a channel, whether you're receiving or opening.
If you have a pending Pool Credit Transaction with the node to whom you're about to offer a channel.
This warning system is designed to streamline your interactions and ensure efficient management of your channels.
In the realm of Bitcoin transactions, surging mining fees signal a bustling network. A fee environment peaking at 100 sat/vB is a testament to this activity. For the seasoned Lightning Network node operator, this landscape presents both a challenge and an opportunity. Let’s dive into strategies for LND and CLN node operators to navigate these bustling times.
Strategic Channel Management in Looming High-Fee Climates
As mining fees spike, the allure of the Lightning Network's cost efficiency becomes ever more appealing. Yet, operators must tread carefully—channel management now bears a weightier cost. The savvy move? In calmer fee climates, strategically open channels, close the inactive, and configure your node to handle the future tempest. For LND nodes, ensuring anchor commitments are in play is crucial, as they reserve funds specifically for these high-fee scenarios.
LND Nodes: Adaptability in the Fee Storm
For those operating LND nodes, preparation morphs into action as fees rise. Tools such as lncli wallet bumpfee allow for dynamic response—bumping channel opening fees, adjusting for cooperative and unilateral closures. With a proper foundation laid, operators can manage channels with the finesse needed in these testing times. Remember that channel opening transactions must confirm within 2 weeks, or the channel will be force closed. Read more on how to handle unconfirmed transactions on LND.
Mastery of BOS in High-Fee Environments
When the network congestion thickens, the Balance of Satoshis (BOS) tool becomes the operator’s Swiss Army knife. With commands like bos call requestchainfeeincrease, LND nodes can be finessed to respond to the evolving fee landscape, ensuring channels remain economically viable and transactions don’t languish unconfirmed.
CLN Nodes: A Calculated Approach to Channel RBF
For Core Lightning node operators, lightning-openchannel_bump is your go-to command, allowing for the Replace-By-Fee mechanism to be applied to your channels. This is not a brute-force tool but a calculated move—utilizing PSBTs and fine-tuning with funding_feerate—to ensure your node's economic footprint remains a step ahead of fee surges. Read more about lightning-openchannel_bump command on CLN.
The Practicalities: From Uptime to Wallet Management
Both LND and CLN operators should heed the practicalities: maximize uptime, ensure a selection of UTXOs are at hand for cost-effective channel operations, and don’t shy away from private channels to maintain peer relationships during downtime. And, of course, keep a vigilant eye on wallet management—consolidating UTXOs can be a double-edged sword, trading off cost for privacy.
Closing Thoughts
Operating a Bitcoin Lightning Network node in a high mining fee environment is an intricate dance of preparation, adaptation, and swift action. For those who have laid the groundwork, the high-fee era is not a crisis but a calculated exercise in optimization. By leveraging the full suite of tools and strategies at your disposal, you can ensure that your node remains both a beacon of efficiency and a stalwart of profitability in the ever-volatile seas of Bitcoin’s fee market.
In the ever-evolving realm of "crypto", Bitcoin continues to reign as a fundamental cornerstone. Its recent upgrade, Taproot, has ushered in a new era, birthing a protocol known as Taproot Assets. This protocol lays the groundwork for issuing various assets on the Bitcoin blockchain, seamlessly interoperable with the Lightning Network for swift, high-volume, low-fee transactions. Deep Dive into Taproot Assets:
Issuance of Assets
Taproot Assets facilitates the issuance of diverse assets on the Bitcoin blockchain, ranging from stablecoins to unique asset collections, all while leveraging the privacy and scalability features of Taproot.
Lightning Network Synergy
Assets issued via this protocol can be deposited into Lightning channels, thereby enabling their transfer over the Lightning Network. This union of Taproot Assets and Lightning Network unlocks the door to instant, high volume transactions at low fees.
Privacy & Scalability
With a structure rooted in Taproot's upgrade, the protocol allows for embedding arbitrary asset metadata within existing outputs while ensuring improved simplicity and scalability through Schnorr signatures.
Multi-Asset Functionality
The protocol's vision transcends to transforming Bitcoin into a multi-asset network. The global currencies envisioned as Taproot Assets could potentially see their foreign exchange transactions settled instantly over the Lightning Network.
Developer-Friendly Ecosystem
The recent mainnet alpha release of Taproot Assets daemon is a testimony to the protocol's developer-centric approach, providing a rich suite of tools for asset issuance, management, and exploration.
Community Engagement
The Bitcoin developer community's avid involvement has been instrumental in refining the protocol. Their relentless testing and feedback have been pivotal in advancing Taproot Assets towards its goal of multi-asset functionality on the Lightning Network.
Learn Through Visuals
For a more hands-on understanding, Lightning Labs has curated a series of educational videos in a playlist titled "Taproot Assets." These videos aim to elucidate the nuances of Taproot Assets and guide you on leveraging this protocol to its fullest. Dive into this visual journey to not only comprehend the workings of Taproot Assets but also to grasp how you can integrate and utilize them within your blockchain endeavors.
With the dawn of Taproot Assets, Bitcoin is stepping into a realm brimming with possibilities. The protocol not only accentuates Bitcoin’s core values but also sets the stage for a more private, scalable, and multi-asset network. The integration of stablecoins, for instance, is just a glimpse into how Taproot Assets could potentially revolutionize the transaction experience on Bitcoin and the Lightning Network, especially in emerging markets where the demand for stablecoins is overwhelming.
As we tread along this exciting path, the amalgamation of community efforts, continuous enhancements, and the relentless quest for innovation will undoubtedly play a crucial role in realizing Bitcoin's potential as the global routing network for the internet of money.
In a world that never sleeps, the Lightning Network (LN) has emerged as a beacon of hope for Bitcoiners, promising swift transactions with minimal fees. However, one limitation has been the necessity for both transacting parties to be online concurrently. The introduction of Asynchronous Lightning Payments (ALP) seeks to surmount this hurdle, opening avenues for transactions even when the recipient is offline. The significance of this innovation cannot be overstated as it harbors the potential to enhance user experiences significantly, paving the way for more adaptable payment processes. Below we delve into the intricacies of Asynchronous Lightning Payments, shedding light on its mechanism, the problems it addresses, and the solutions it offers.
Understanding The Challenge
Traditional on-chain Bitcoin transactions thrive on a level of asynchrony; the receiver can generate an output script (a Bitcoin address), which the sender can pay at any time, regardless of the online status of the receiver. The process of securing that payment doesn't necessitate any action from the receiver. However, this is not the case with the Lightning Network, where a unique invoice must be generated by the receiver for every payment. Moreover, both the sender and receiver must be online to exchange necessary information to complete the transaction.
The Advent of Asynchronous Lightning Payments
Asynchronous Lightning Payments aim to bridge this gap by initiating transactions even when the recipient is offline. The transactions are securely held by an intermediary node and are only completed once the recipient reconnects to the network. Several solutions have been proposed to enable asynchronous payments on the Lightning Network. For instance, the Lightning Rod Protocol by Breez is one of the efforts to address this issue, but it has the downside of locking up funds for a longer duration than usual.
Deep Dive into Solutions
One intriguing solution entails a pre-signing of a transaction by the payer, which is sent to the payee via an end-to-end encrypted communication channel. Upon coming online, the payee can sell the transaction signature to a local channel partner, thus completing the transaction. This method not only enables asynchronous payments but also outsources the routing to the local channel partner, thereby overcoming the online requirement for both transacting parties. Another proposal, by Matt Corallo in 2021, suggested a compromise requiring both the sender and receiver to be connected to Lightning Service Providers (LSP). The invoices generated can have a flag indicating the online status of the receiver, and the payment can be held by the LSP until the receiver is online, thus ensuring the payment's security and completion.
The Road Ahead
The discourse around Asynchronous Lightning Payments is an ode to the continuous evolution aimed at making the Lightning Network more user-friendly and efficient. By addressing the synchronous limitation inherent in the current LN setup, Asynchronous Lightning Payments herald a promising step towards a more flexible and inclusive financial network.
In conclusion, Asynchronous Lightning Payments are not just a technological advancement; they symbolize the relentless quest for improving user experience and broadening the scope of what's possible on the Lightning Network. Through innovative solutions, the community is inching closer to a more robust and flexible payment protocol, further solidifying Bitcoin's position in the financial ecosystem.
In the evolving landscape of digital finance, the Universal Money Address (UMA) is a new brand new protocol spearheaded by former Paypal president David Marcus's, and current CEO of Lightspark. Designed to streamline the process of bitcoin transactions, UMA offers a unique approach to sending and receiving payments. Here’s a closer look at what UMA is and how it works.
Understanding UMA
At its core, UMA is a protocol that borrows from the concept of Lightning Addresses, known from the LUD-16 standard, with a distinct identifier - the $ sign. An UMA looks something like $alice@somewallet.com, which is intended to function as a recognizable and user-friendly payment address.
With an UMA-enabled account, you can send funds to anyone else with an UMA in any currency supported by your wallet providers. Payments can be sent domestically or international currently in 45 countries. UMAs are an easy solution for sending and receiving money across borders, simplifying the complicated process of money transfers for people and enabling instant, low-cost payments.
UMA Address Format
The Format of UMA Addresses
UMA Addresses begin with a $ to differentiate from traditional email addresses.
They are case-insensitive and primarily written in lowercase.
The format follows the $<username>@<domain> structure, mirroring the familiar email format.
Sending funds using UMA address
The Role of the Bitcoin Lightning Network in UMA
The integration of the Bitcoin Lightning Network within the Universal Money Address (UMA) system is pivotal for enhancing bitcoin payment processes. Here's a succinct look at its role:
Speed and Efficiency: UMA leverages the Bitcoin Lightning Network to expedite bitcoin transactions while keeping costs low. This integration is particularly beneficial for users looking for rapid and affordable bitcoin transfers.
Streamlined Transactions: By utilizing the off-chain capabilities of the Lightning Network, UMA ensures that transactions are swift and do not congest the Bitcoin network, thus maintaining scalability.
Compatibility with Lightning Addresses: UMA addresses align with Lightning Addresses, allowing for a seamless transition between UMA's user-friendly interface and the robust Lightning Network.
Security: The private nature of the Lightning Network's channels brings an added layer of security to UMA transactions, keeping them safeguarded against potential threats.
In essence, the Bitcoin Lightning Network is not just a feature within UMA; it's the backbone that provides speed, cost-efficiency, and a smoother bitcoin transaction experience for users.
The Role of UMA SDK
The UMA SDK serves as a tool to validate and process UMA addresses. It ensures that addresses meet the format requirements and provides functions for initiating and receiving payments within the guidelines of the protocol.
Security Measures
Securing transactions in the UMA ecosystem involves the generation of secp256k1 key pairs, used for signing and encrypting data. The SDK includes functionalities for handling these keys, which are vital for maintaining the security and privacy of transactions.
The Payment Flow with UMA
Starting a UMA transaction begins with an lnurlp request. This initial communication retrieves necessary details from the recipient's VASP (Virtual Asset Service Provider) and sets the stage for the subsequent payment steps. The request includes details such as the UMA protocol version, a nonce for security, and a signature for verification.
UMA's Potential
UMA is an emerging protocol in the bitcoin space, and its adoption could potentially simplify transactions across borders and currencies. Its resemblance to email addresses may also lower the barrier to entry for users new to bitcoin. However, the long-term impact on the financial landscape remains to be observed depending on how many institutions are willing to integrate the new protocol.
Fifteen years ago, the world was introduced to Bitcoin through a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," penned by the enigmatic Satoshi Nakamoto. This groundbreaking document laid the foundation for a financial revolution, challenging conventional beliefs about money, trust, and the global financial structure.
The Genesis and Rise of Bitcoin
Initially embraced by a tight-knit community of cryptography enthusiasts and libertarians, Bitcoin's journey from obscurity to mainstream recognition has been nothing short of meteoric. The earliest days saw a Florida man making history by purchasing two pizzas with 10,000 Bitcoins. Today, that amount has the potential to reshape economies.
Pivotal Moments in Bitcoin’s Evolution
2009: The public witnessed the release of Bitcoin's software and the inaugural Bitcoin transaction.
2010: A landmark real-world transaction materialized with two pizzas being exchanged for 10,000 Bitcoins.
2013: Bitcoin breached the $1,000 mark, signaling its growing significance.
2017: Amidst frenzied interest, Bitcoin soared to an all-time high of nearly $20,000 in December.
2020: MicroStrategy, an American enterprise analytics and mobility software company, took a leap of faith by adopting Bitcoin as its primary treasury reserve asset. This decision marked one of the first major instances of a publicly traded company allocating a significant portion of its reserves to Bitcoin, paving the way for other corporations to consider Bitcoin as a legitimate store of value.
2020-2021: Bitcoin's allure captivated institutional investors and major corporations. Tesla's announcement of a $1.5 billion Bitcoin investment and the introduction of Bitcoin services by numerous financial institutions underscored this trend.
Laszlo Hanyecz made history by using Bitcoin to buy pizza in 2010
The Lightning Network: A Game-Changer
One of Bitcoin's critiques has been its scalability and speed. Enter the Lightning Network, a second-layer solution introduced to enhance Bitcoin's transaction capacity and speed. This innovation proved instrumental in making microtransactions viable and reducing transaction fees, further solidifying Bitcoin's position as a reliable means of exchange.
A Staggering Market Presence
Currently, Bitcoin commands a market capitalization exceeding $600 billion. This monumental valuation isn't just indicative of its growth but also represents the trust and belief millions globally place in this digital asset. Its decentralized nature, capped supply, and resilience to geopolitical and economic turbulences have earned it the moniker "digital gold."
Miss El Salvador rocking a Bitcoin dress
El Salvador's Bold Embrace
In an unprecedented move in 2021, El Salvador emerged as the pioneer nation to recognize Bitcoin as legal tender. This monumental decision signifies more than just a victory for Bitcoin; it heralds a new chapter in the global acceptance of cryptocurrencies. In El Salvador, Bitcoin's utility spans daily transactions, tax payments, and even salary disbursements.
Towards a Bright Future
Although Bitcoin has achieved astounding success in a mere decade and a half, its journey is ongoing. It faces hurdles like regulatory lack of clarity in some jurisdictions and the misunderstood environmental impact of mining. Yet, the continuous wave of innovation, typified by developments like the Lightning Network, coupled with growing global endorsement, hints at a luminous horizon.
Celebrating 15 years of Bitcoin, we stand at the intersection of its illustrious past and the limitless potential of its future.
In a riveting episode of The Bitcoin Layer, a platform dedicated to research, analysis, and education on Bitcoin and macro topics, Nik welcomed guest Sam Wouters. As a Research Analyst at River, Sam has been at the forefront of understanding Bitcoin's evolution, especially the Lightning Network (LN). This episode focused on Sam's recent report we covered earlier, which highlighted the explosive growth of LN adoption over the past two years.
Sam Wouters' Journey with Bitcoin
Sam's foray into Bitcoin is as intriguing as the cryptocurrency itself. His initial exposure came from a unique intersection of online gaming and the need for a reliable, chargeback-free transaction method. This led to his deep dive into Bitcoin and eventually to his analytical role at River.
The core of the discussion revolved around the Lightning Network and its transformative impact on Bitcoin. Sam's insights shed light on:
Key Points
Exponential Growth: LN's adoption has skyrocketed over the past two years, and Sam's report meticulously details this growth trajectory.
LN's Staying Power: Contrary to some skeptics, Sam firmly believes that LN is here to stay, playing a pivotal role in Bitcoin's ecosystem.
Complementing Bitcoin: Sam elucidated how LN and Bitcoin perfectly complement each other, with LN amplifying Bitcoin's capabilities, ensuring faster, cheaper, and more secure transactions.
Game-Changing Nature of Lightning Network:
The highlight of the episode was understanding the revolutionary impact of the Lightning Network on global Bitcoin adoption. It isn't just about scalability; LN offers users enhanced privacy and ensures that Bitcoin remains robust as a global transactional platform.
Nik's conversation with Sam Wouters was an enlightening exploration of the transformative potential of the Lightning Network. For anyone keen on understanding Bitcoin's future and its evolving landscape, this episode is a must-watch.
Note: If you're primarily interested in actionable steps to protect yourself, jump to the end of the post.
A recently highlighted vulnerability in the Bitcoin Lightning Network is the "Replacement Cycling Attack", a sophisticated method that can be exploited to potentially cause a loss of funds for LN users. While this is a significant concern, don't fear that this marks the end of LN. This isn't the first time serious vulnerabilities have surfaced in Bitcoin or LN, and we will, in time, find ways to mitigate the risks. This post aims to break down the nature of this vulnerability and offers guidance on mitigating the risks. If you find any inaccuraccies, please contact me or post a comment, so I can fix it ASAP.
Bitcoin Mempool: Think of the mempool as a waiting room for Bitcoin transactions. Before a transaction is added to a block and confirmed, it waits here. The mempool has limited space, and transactions compete to get in, primarily through fees.
Replace-by-Fee (RBF): This rule in Bitcoin allows a user to replace their transaction in the mempool with another that has a higher fee. It's like raising your bid at an auction.
The Attack in Detail
Two-Channel Setup: To initiate the attack, the attacker needs to open two channels with the victim and then route a payment through them. It's not an easy task, but it's a foundational step.
Playing the Replacement Game: Using RBF, the attacker continuously replaces transactions in the mempool, ensuring the target's transactions never confirm.
Collusion Aspect: Alice and Carol, two parties, could collude against Bob (the victim). For instance, while Bob is routing a lightning payment from Alice to Carol, the attackers broadcast two low-fee transactions, the "cycle parent" and "cycle child", which are seemingly unrelated to the lightning channel. This forms the basis for a more complex attack.
The Cycle: As soon as Bob's htlc-timeout transaction appears in the mempool, the attackers use an "htlc-preimage" transaction that spends both the HTLC output and an output from the cycle parent. This effectively replaces Bob's transaction. The attackers then initiate a replacement cycle ensuring Bob's transactions never stay in the mempool. If executed successfully, this can lead to Bob losing the entire value of the payment.
Outcome: The target's transactions either get delayed or never confirm. In the Lightning Network context, this can cause fund loss.
Concerns for the Lightning Network
LN functions with contracts that have time constraints. If these contracts aren't confirmed timely due to such attacks, it can lead to scenarios of lost funds. The attack doesn't require massive resources but demands a sound understanding of Bitcoin and the LN, making it a real threat.
Solutions and Mitigations
Aggressive Rebroadcasting: By continuously broadcasting their transactions, users can escalate the cost for the attacker. This makes the attack more expensive and less appealing.
Local Mempool Monitoring: By actively tracking their transactions in the mempool, users can detect suspicious activities and take preventive measures.
Adjusting Time Parameters in LN: Fine-tuning certain time-related settings in the LN can reduce susceptibility to these types of attacks.
Presigned Fee Multiplier for HTLC Spends: One proposed solution is to modify the HTLC scripts so both parties can only expend the HTLC through presigned second-stage transactions with a fixed SIGHASH_ALL. This stops the attacker from adding inputs to their presigned transaction, effectively thwarting replacement cycling attacks. To cater to the needs of fee bumping, a sequence of presigned transactions with incrementing fees can be established. This can employ a multiplier system starting with smaller multipliers and transitioning to larger ones as needed.
Fee Ranges with Presigned Transactions: By pre-signing a series of replacement transactions that increment the fee at each step using a set multiplier, users can ensure efficient fee management. For example, beginning with smaller multipliers (1.1, 1.2, 1.4) and then transitioning to more significant increments (1.8, 2.6, etc.) can ensure minor bumps for small adjustments and major bumps when aggressive strategies are necessary.
Commitment Transactions with HTLC Removals: As fees rise, commitment transactions can be modified to exclude HTLCs, especially when an HTLC's value is less than the required mining fees.
Deducting Fees from Different Party's Outputs: This strategy involves both parties authorizing each other to broadcast transactions with increasing fees. The additional fees can be deducted from their respective outputs, facilitated by traditional multisignature setups.
Short Term Mitigations
Lower the HTLC Max Setting: By decreasing the maximum setting on channels that aren't fully trusted, users can minimize the potential loss due to an attack.
Curate Nodes for Channel Opening: Users should be selective and cautious about the nodes they establish channels with, minimizing exposure to potentially malicious nodes. Be sceptical with brand new nodes opening very large channels. Here on LN+, users can assess the reputation of nodes based on the number of positive ratings they've received.
Adjust your CLTV Delta Setting: If your node's CLTV delta setting is below 144, consider increasing it. This gives transactions more time to be confirmed on the blockchain, adding an extra layer of security.
Stay Updated with Software Mitigations: Always keep an eye out for software updates that include security improvements. For instance, LND 0.16.1, which was released six months ago, already incorporated mitigations by elevating the default CLTV delta delay.
Conclusion
The "Replacement Cycling Attack" emphasizes the importance of continuous research and vigilance even when it comes to technologies that have been around for years. Live by the motto: Don't trust, verify.
The decentralized world of Bitcoin and its off-chain scaling solution, the Lightning Network, has taken the world by storm. One of the ways to gauge its acceptance is by examining the number of Lightning Network nodes across different countries. By understanding the distribution, we can grasp a better picture of adoption rates and regional tendencies. Here, we'll delve deep into the data to unveil patterns and insights.
This data is collected from nodes with public IPs from 1ML. The total network is significantly larger if we could include nodes running over Tor. It's also important to note that a resident of one country may run their node in a different geographic location. Regardless, the data provides a rough indication of the state of affairs.
Top 5 Countries by Node Count
United States: 1,332 nodes
Germany: 488 nodes
France: 331 nodes
Canada: 304 nodes
Netherlands: 119 nodes
It's evident from the data that North America leads by a significant margin in terms of absolute node count. European countries, particularly Germany, France, and the Netherlands, are also prominently represented, suggesting a strong European interest in the Lightning Network.
Top Countries by Node Count
Top 5 Countries Adjusted for Population
To gauge relative adoption, we must account for population size. By evaluating nodes per million people, we can identify countries with a disproportionate interest in the Lightning Network compared to their size. I excluded smaller countries, as their limited population can lead to unreliable data.
Iceland: 41.90 nodes/million
Singapore: 10.29 nodes/million
Switzerland: 9.35 nodes/million
Finland: 8.28 nodes/million
Canada: 7.81 nodes/million
While Iceland takes the crown, it's crucial to note that it has a relatively small population, which may allow for such high numbers with fewer nodes. However, this doesn't negate the country's keen interest in Bitcoin's scaling solution. The appearance of Singapore and Switzerland on this list suggests these nations' roles as global finance and tech hubs.
Countries by Node Count and Nodes / 1M People
Other Noteworthy Observations
Asian Discrepancy: Japan and South Korea, often considered tech-forward nations, show surprisingly low nodes per million (0.60 and 0.17 respectively). This might suggest a cultural or regulatory hurdle, or perhaps other technologies and financial solutions are more prominent.
Emerging Economies: It's interesting to note countries like Brazil and China, with vast populations, showing a low adoption rate. As these nations are known for their rapidly growing tech sectors, it would be intriguing to monitor how these figures change in the coming years. It's important to highlight that, according to anecdotal data, numerous node operators in emerging economies utilize Tor, and thus, they aren't reflected in the numbers provided above.
Dark Horse: North Korea's appearance on the list is surprising, given its geopolitical situation and strict regulations. While the node count isn't high, the fact that it's on the list at all is noteworthy. It is also possible that this result is a fluke of data collection.
What's Next?
The Lightning Network's adoption is spreading worldwide, with specific nations spearheading the movement. As with any technology, its acceptance and implementation are influenced by regional, cultural, and economic factors. As Bitcoin and the Lightning Network progress, it will be intriguing to observe the changes in these numbers and identify which countries emerge as the frontrunners in this decentralized financial revolution.
Short-term predictions for the next 5 years:
Custodial LN wallets, such as Wallet of Satoshi and Speed Wallet, will see increased adoption, and this increased userbase will not be reflected in node count.
For some time, corporate adoption will largely come through custodial services like OpenNode and Speed. Consequently, this surge in corporate adoption may not significantly impact the node count.
With the launch of Taproot Assets and the introduction of stablecoins on Lightning, countries like Turkey will significantly boost their Lightning adoption.
With the rollout of user-friendly Lightning node solutions like Umbrel Home and Start9's Servers, we can expect a noticeable uptick in hobby node operations in developing countries.
Lightning Network implementations are becoming more streamlined and faster, making it feasible for even legacy devices. This will enable individuals, especially in South American countries, with modest means to run nodes for their small businesses and personal needs.
Long-term predictions for the next 10 years:
Millions will operate Lightning nodes on their mobile devices. These won't be full nodes but rather pruned nodes, depending largely on external servers to strike a balance between privacy and decentralization. If we include these streamlined nodes, we might see a total of 1 million nodes.
The Lightning Network will also operate on Liquid, with submarine swaps allowing people to seamlessly pay Liquid LN invoices using Bitcoin LN nodes, and vice versa. Liquid LN will come in handy in scenarios necessitating frequent and economical channel management.
While stablecoins will remain relevant, Bitcoin will begin to dominate in many contexts, negating the need for the complexity and custodial nature of stablecoins.
Custodial LN wallets will persist but will likely be reserved for minor amounts, akin to pocket money for children. In contrast, salaries will predominantly be disbursed to self-custody wallets.
Enhanced Node Search and Filtering in the Liquidity Pool Responding to feedback from node operators, we've introduced new search and filtering options in the Liquidity Pool. Now, you can easily filter nodes based on your intended channel size and the required connection type, whether it's Clearnet or Tor. Additionally, locating specific nodes has become more straightforward — simply search using their alias or pubkey.
Set Your Desired Channel Size You can now specify your preferred minimum lightning channel size using the "Required Minimum Channel Size" field in your account settings. This determines the smallest channel size you're willing to accept on LN+. In the Liquidity Swaps section, only swaps exceeding your set minimum will be displayed. Meanwhile, in the Liquidity Pool section, other node operators can't propose offers that fall below this threshold. This limit is also prominently shown at the top of your node profile.
Timed Release of Locked Liquidity Credits Liquidity Pool Offers, also known as Credit Transactions, have a set validity period. During this period, liquidity credits remain locked to prevent any double allocation of these credits. Moving forward, the transaction will automatically time out after 5 days during the approval process and 10 days during channel confirmation. This ensures that any locked liquidity credits are released. For your convenience, each transaction page now includes a timer, displaying the time remaining to move to the subsequent step.
Extended Node Highlighting to the Liquidity Pool Previously, node highlighting was exclusive to the Node Explorer. We've expanded this feature to the Liquidity Pool. This means highlighted nodes are now prioritized and appear at the top in both sections.
Discover Nodes Randomly in the Pool To enhance node discovery within the Liquidity Pool, we've introduced a section below the highlighted nodes. This section showcases nodes selected at random from the pool, ensuring every node gets an opportunity to be featured on the pool's front page.
Track Your Liquidity Credits in Real-time Head over to the Stats page, where you can now monitor your available liquidity credits anytime.
Earn a Badge for Participating in the Liquidity Pool Nodes that successfully complete a Liquidity Pool Credit Transaction are now rewarded with a special "Liquid" badge on their profile.
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Lightning Labsannounced the release of Taproot Assets on Bitcoin's mainnet, signaling a transformative phase for Bitcoin. This release enables the issuance, management, and exploration of assets like stablecoins on the Bitcoin blockchain, ensuring forward compatibility. The integration of Taproot Assets aims to make Bitcoin a multi-asset network, thus leveraging its core values. With the support of the Bitcoin developer community, the protocol has undergone significant enhancements, with its focus now shifting towards incorporating multi-asset functionality on the Lightning Network. The ultimate goal is to provide global users with a seamless, secure, and efficient transaction experience, thereby reinforcing Bitcoin's potential as the global routing network for internet money. Read a quick summary on the current state of Taproot Assets.
Introduction
Taproot Assets has released its mainnet alpha, marking a significant milestone for Bitcoin.
This release allows for issuing, managing, and exploring stablecoins and other assets on the Bitcoin blockchain.
It also ensures forward compatibility, meaning no further breaking changes to the protocol affecting mainnet assets.
Key Features
With Taproot Assets v0.3, Bitcoin can now operate as a multi-asset network while maintaining its core values.
The release envisions global currencies being issued as Taproot Assets, with foreign exchange transactions settling instantly over the Lightning Network.
The Lightning Network will play a pivotal role, routing Taproot Asset transactions without intermediaries, thereby leveraging Bitcoin's existing liquidity and secure foundation.
While the release is for the mainnet, it's in alpha, implying that community testing for bugs is anticipated.
For a comprehensive understanding of Taproot Assets, one can delve into the Bitcoin Improvement Proposals (BIPs) and official documentation.
Taproot Assets v0.3 includes:
Enhanced asset issuance APIs for better mainnet functionality.
New asset-burn APIs to manage asset redemptions.
Asynchronous receive functionality for on-chain transactions.
Introduction of Multiverse mode for Universes.
Improvements in scalability, security, and overall developer experience.
Community Involvement
The Bitcoin developer community has been instrumental in providing feedback, testing the software, and creating products for the end-users.
During its testnet phase, nearly 2,000 assets were minted, with nodes syncing with the Universe server over 420,000 times.
Developers can further explore Taproot Assets by downloading the daemon, reviewing the API documentation, and reading the getting started guide.
Global Demand for Stablecoins
The demand for stablecoins, especially in emerging markets, has surged, primarily due to their superiority over local currencies.
Stablecoins provide a better user experience in terms of accessibility, custody, and global utility, making them more attractive than local currencies suffering from high inflation rates.
Taproot Assets aims to introduce stablecoins to Bitcoin wallets, further promoting Bitcoin adoption globally.
Future Goals
The ultimate goal for Taproot Assets is to make the Lightning Network multi-asset capable.
The focus will shift towards providing stablecoin support on a global scale, allowing users to transact in their preferred currency via the Lightning Network.
Two essential features, unannounced Taproot channels and the Taproot Asset Protocol channels specification, have been released, paving the way for multi-asset functionality on the Lightning Network.
In essence, the release of Taproot Assets on the mainnet signifies a transformative phase for Bitcoin, enabling a more versatile and scalable multi-asset network. With community support and continuous enhancements, Bitcoin's potential as the global routing network for internet money is poised to be realized.
