Stellar (XLM) to Implement Lightning Network By The End of 2018
Stellar Lumens (XLM) – Lighting Network, the network working already in Bitcoin and Litecoin’s network, which brings great solutions on the scaling problems, is worth both the attention around it and the interest of other crypto-platforms to use it. The payment of microtransactions using Bitcoin, is only possible since the Lighting network was inserted in their platform. Stellar (XLM), on the 19th of March reaffirmed on their Roadmap the interest to incorporate the Lightning network on their platform in 2018.
Quoted from Stellar website “Scalability has been at the center of some of the most bitter disagreements in blockchain. We’ve tried to approach the problem with an open mind. To the extent and idea improves what our users care about- speed, throughput, privacy- we will explore it, and since a typical Lightning payment:
-can be confirmed instantly
-has negligible fees
– doesn’t have to become public
The protocol has always interested us. As we said in our 2018 Roadmap it’s now clear that Lightning is the right way forward for Stellar.”
Lightning Network- How does it work?
Lightning is a solution for the scaling problems in distributed payment networks. Originally was used for Bitcoin and later on was also implemented on Litecoin. This network allows users to make off-chain payment channels through routers and hubs utilizing smart contracts, which means there is less strain on the main network. Lightning also has the potential to support cross-protocol payments, so a payment where one sends Litecoin on Litecoin’s network and the recipient receives lumens on Stellar’s network, without having a middle man or any kind of party in between. This concept is very simple to process, but powerful at the same time. And, as I said before, these are off-chain transactions, which means they are much cheaper and faster, with the advantage of being really similar to on-chain transactions, so they have the safety background as well.
The smart contracts, or payment channels are made in order to close as soon as the transactions are made and turn into public ledger again. No matter what the processes in-channel are, the world will only be capable to see the final transaction. Of course, all the crypto-platforms channels have their nuances and differences when compared to others, but to implement Lightning Network there are 4 basic requirements:
- Firstly, no transaction is submitted to the network, except when the parties disengage and the channel goes off;
- Secondly, there is no loss of funds caused by cheating parties;
- Also, there is no vulnerability to third-party interference, a channel is a connection between a sender and a receiver and that is it;
- Lastly, there are no channel-side speed bottlenecks.
Stellar Lumens (XLM) and Lightning Network
This cryptocurrency proves to support a more flexible generalization of payment channels, called state channels, which means that any operation executed on Stellar network can be executed within a payment channel. Thanks to the Lightning network a rate of thousands of transactions per second will be possible. Holding hands with the fact that users also receive the benefit of privacy, since the only amount visible on the public ledger will be the final transaction. The cherry on top will be permission of low-fee and instantaneous atomic swaps between a wide variety of alt-coins- something that will be essential for the success of Stellar’s Decentralized Exchange. Throughout the evolution of Stellar and the appearance of the Lighting network, this was a platform that always showed big interest around the possibility of making this integration. Of course, it is proved that Stellar already explored Lightning and the possibility back in 2015, but sometimes the best option is to hold a decision until the time is right and, in this case, it seems that 2018 is the time to do it, since its developing team has been adding the necessary improvements to make Lightning suit Stellar’s network perfectly.
Bellow you will find two different links, where it is possible to find a more technical discussion around this implementation, in a very transparent thread with some interesting points and code explanations:
https://www.stellar.org/blog/lightning-on-stellar-roadmap/ – you will find it from the “State Channels on Stellar” subtitle.
What to expect in the future
Cryptocurrencies are becoming more and more famous and the number of companies and partnerships in their environment grows every day. So, to become a trustworthy platform the capability to handle sensitive information with security and efficiency is mandatory. Scalability solutions are only one of the foundations needed to take a platform to the upper level.
Not only will Stellar (XLM) implement the Lightning network this year, but they are also on the move to have their own Decentralized Exchange and focusing on developing their own ecosystem. This exchange will be called SDEX (Stellar’s Decentralized Exchange). Stellar’s network can only be proud of the advances it is making since these are notorious steps towards the creation of a place where everything from digital assets will be possible to trade.