TALKING HEADS: Do You Consider The Lightning Network A Proof-Of-Stake System?

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It’s time to seek out out what the protagonists need to say. In TALKING HEADS, Bitcoinist will ask the consultants concerning the cryptoverse’s overarching themes and newest information. This time, we’ve an all-star forged that’s as numerous because the occasions we’re residing in. Prepare to have your thoughts electrified by these speaking heads’ concepts and reasoning.

Related Reading | That JPMorgan Report On El Salvador Doesn’t Even Mention The Lightning Network

Today’s theme is the Lightning Network. The concept that it is perhaps a Proof-Of-Stake system comes from one of many unique Bitcoin luminaries, Andreas Antonopoulos. “This talk took place on March 29th 2016 at the Blockchain Meetup in Berlin, Germany,” and Andreas blew everybody’s thoughts when he stated that Bitcoin would have a PoW and PoS hybrid system, as a result of The Lightning Network is…

TALKING HEADS Weights In

There’s one thing to the Proof-Of-Stake thought. To present liquidity to The Lightning Network, nodes need to stake Bitcoin. And the dimensions of that Total Value Locked in a node impacts what it might do and who can it transact with. And it generates charges. Your locked stake generates cash, similar to in a PoS system. 

However, Antonopoulos may’ve been incorrect on this one. First of all, no consensus is important within the Lightning Network. Secondly, the Lightning Network doesn’t problem cash. Finally, a medium node can compete with a big node, particularly if it’s nicely managed. 

But, that’s introduction sufficient. Let’s minimize to the chase and browse what our famous person visitors need to say concerning the topic. 

BTC value chart for 11/23/2021 on Bitstamp | Source: BTC/USD on TradingView.com

“Lightning is a layer 2 that is created on a PoW and performed on a PoW, I wouldn’t classify it as either a PoS or a PoW. The analogy I would use is more of an attached payment system that is built on top of the existing Bitcoin network, similar to an aggregator.”

– Norelle Ng

Tim Behrsin – Founder and CEO at Grexie

“Proponents of the Lightning Network might argue that since validators stake Bitcoin to provide liquidity to transactions that happen between users, that it is a Proof of Stake system. However there is no proof that happens, the proof is provided by the Layer 1 Bitcoin protocol, and the Lightning Network is merely a match maker between liquidity providers and spender-receiver channels. Proof of Stake systems use a mechanism to achieve consensus among a network of validators,  in which fees are allocated for performing proofs of the network’s validity and security, rather than a medium of exchange, as in the case of Lightning Network.”

-Tim Behrsin

“Yes, Lightning is a Proof-Of-Stake system, but it redefines its meaning because unlike other stake systems where you just leave your crypto stationary, in Lightning it depends on the efficiency of the channels you open, your rate policy, the availability of your hardware and the business model you establish for your node. It’s hard to reach the break-even point, but it offers countless new monetization possibilities that we’re still discovering.”

– Fernando Motolese

Luis Molina, Co-Founder of Superalgos

“Lighting Network is not a Proof-Of-Stake protocol because it is not a class of Consensus Mechanism for blockchains, which is what Proof of Stake is.  In fact, the Lighting Network is not a blockchain at all, but rather a Layer 2 payment protocol built on top of one.  Even though the Lighting Network has the concept of Payment Channels that needs to be funded, their purpose is to facilitate payments between network users rather than to achieve consensus.”

– Luis Molina

And these are all of the enlightening opinions that we’ve for you as we speak. Bitcoinist immensely appreciates our visitors’ time and data. The TALKING HEADS part wouldn’t be attainable with out them. 

Related Reading | BTC + The Lightning Network’s Energy Consumption Vs. The World, A Comparison

Before we go, let’s begin a brand new custom. We’re closing this part with a Talking Heads tune. 

Talking Heads, “And She Was”

This one’s from “Little Creatures,” the band’s 1985 album.

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