Lightning Bitcoin: A Bitcoin Fork with Potential to Make Inroads in Future
Bitcoin is the largest cryptocurrency that currently exists in the market in terms of both market capitalization and individual price. It dominates nearly 40% of the entire trading volume of cryptocurrency market (as of 1st July 2018). However, since the beginning of this year, Bitcoin, the progenitor of cryptocurrency revolution， has been facing a significant number of problems that are creating doubts among the crypto-connoisseurs and traders all around the world. Apart from its intractable volatility in price, other loopholes of Bitcoin’s ecosystem such as high transaction cost and low scalability are getting exposed.
As a result, some new derivatives of Bitcoin, popularly known as Bitcoin Forks are being introduced to the crypto world. Lightning Bitcoin (LBTC), is the one among such forks that came into the market on December 18th, 2018. The Lightning Bitcoin hard fork offers a much higher transaction speed and efficiency. Here, a few aspects of this relatively newer cryptocurrency would be discussed for your convenience.
The Technology behind Lightning Bitcoin:
This cryptocurrency was forked at block 499,999 of the Bitcoin blockchain on 18th December 2017 and was finally launched on January 2nd of this year. Unlike Bitcoin, LBTC comes with a DPoS (Delegated Proof of Stake) consensus mechanism that enables this coin to offer a much higher scalability. Delegated Proof of Stake implements digital democracies capable of nullifying the negative centralization effect caused by the Proof of Work mechanism that Bitcoin adopts. As consequence, true decentralization becomes possible with LBTC holders entitled to the voting rights which allows to elect or abstain bookkeeping nodes, i.e. network delegates.
The DPoS system also accounts for maximum profitability, network efficiency, and security by increasing the scalability. This consensus helps in achieving a supersonic transaction speed of up to 10000 transactions per second by mitigating the number of participating verification nodes to 101 forging nodes. Lightning Bitcoin incorporates the best qualities of two cryptocurrencies namely Bitcoin and EOS into one. It also significantly increases the forging speed of the blockchain. As a result, blocks can be processed every 3 seconds on Lightning Bitcoin’s network. In comparison, Bitcoin usually takes around 10 minutes for this process and takes nearly an hour for transaction confirmation. Furthermore, Lightning Bitcoin comes with the augmented block size of 2MB which can be further adjusted though the voting mechanism.
Key Features Offered by Lightning Bitcoin:
Due to its efficient consensus mechanism, Lightning Bitcoin offers several advantageous features to the users including:
- Community Autonomy: With DPoS consensus mechanism, voting and bookkeeping rights remain separated within the LBTC ecosystem. This prevents any party to gain the complete control of the blockchain network. This feature allows users to maintain their policy discourse as long as they possess some coins in their respective LBTC accounts.
- High Scalability: As the size of each block increases by 1 MB in Lightning Bitcoin blockchain, the scalability of the network is truly commendable. Combing with the DPoS consensus feature, LBTC is capable of offering 1,000 to 10,000 transactions per second while taking 3 seconds per block with 2 MB block size design. This feature invalidates the most noticeable problem associated with Bitcoin, which is a slow transaction speed.
- Distribution: The distribution system of Lightning Bitcoin is tailor-made for users across the globe. At the moment, Bitcoin holders with positive BTC balance at the block height 499,999 can claim Lightning Bitcoin at a 1:1 ratio. To note, the fork does not support SegWit addresses which cut off holders of BTC on SegWit to get LBTC coins.
- Security: The DPoS mechanism offers a nearly impregnable cybersecurity that cybercriminals with malicious intents cannot breach easily. It also reduces the cost of maintaining such security and network operation.
Later on, Lightning Bitcoin Network would allow the creation of:
- Smart Contract System: Lightning Bitcoin will offer an inbuilt smart contract facility to the traders. This inbuilt smart contract is majorly responsible for the efficiency of LBTC as it makes application designing on blockchain possible along with proper distribution and issuing of various digital assets.
- DApp Developments: The ecosystem of Lightning Bitcoin will support all kinds of DApp developments including cross-chain transaction and zero knowledge proof.
Smart contracts and DApps Milestones are scheduled to be launched in first quarter of 2019.
Partnerships with Exchanges and Wallets:
Although it has just been five months since the inception in January, Lightning Bitcoin has already been listed on several renowned cryptocurrency exchanges including DigiFinex, CoinEgg, Yobit.net, ZB.com, BCEX, SWFT Blockchain, BTCTRADE.IM. You can easily trade your fiat currencies with LBTC on these exchanges.
Also, you can store this currency on popular mobile cryptocurrency wallets like BitPie, HyperPay, Cobo, Kcash, etc.
The LBTC Team:
The Lightning Bitcoin team consists of extremely talented personnel including Jack Zhang, Founder of Chainfunder Blockchain investment fund, DAF smart ecosystem, co-founder of Neo and early investor into NEM, AntChain, Metaverse, IOTA. Core development includes Ben Wang and Jiraiya Sun, who have extensive experience in the development of securities market, trading systems, p2p network architecture and payment applications. Eason Zhao, a former member of the blockchain project Metaverse, joined LBTC as a light wallet core developer.
List of partners that assist in project promotion and development is none less impressive: Co-founder of Huobi Jun Du, founder of the Loopring Dong Wang, and several others. This highly adroit team is making upgrades indefatigably to make LBTC blockchain platform even more efficient and convenient.
The Update Position of Lightning Bitcoin:
LBTC currently holds the 1366th position on Coinmarketcap with a commendable price equivalent to nearly $15. The trading volume of the past 24 hours for this coin is approximately 1.4 million USD (as per data collected on 29th of May, 2018).
As for the network, currently, there are 605 registered delegates, where 101 active bookkeeping delegates have forged around 200 000 LBTC so far. Info from here: https://lbtcscan.io
The team has recently disclosed the source code and right now is running a Lightning Node Elections to establish the core governing bodies and bookkeeping nodes in the network. After that the on-chain governance “Delegate Committee” will be integrated/ nodes elections, that is planned to solve the current centralization problem. Elected nodes will be required to go through the list of filtering criteria including coins lock up in order to continue forging.
As mentioned earlier, Lightning Bitcoin implements the best qualities of Bitcoin and EOS. It is also a massive improvement in terms of transaction speed. Therefore, considering the new upcoming partnerships and technical developments, Lightning Bitcoin has the potential to become a major Bitcoin fork and cryptocurrency in the future.
DISCLAIMER: Opinions expressed by Coinschedule Blog contributors are their own.