No FUD with LN: hardiness, certainty and trust. Take the Torch
Take the Torch: Satoshis from people to people
Breaking news! LiteGo.io took part in the global flash mob ‘Take the Torch: Satoshis from people to people’. Many Twitter users have already described flash mob as a global event popularizing the Bitcoin Lightning Network.
The essence of the flash mob is that Lightning Network Twitter community members pass on a ‘Lightning Torch’ to each other. A torch is a transaction, each next participant increases the sum of which by 10,000 satoshis. The flash mob was started on January 19, 2019, as a social experiment by the Norwegian Twitter user @hodlonaut, who transferred 100,000 satoshis to the user @fartface2000. The purpose is to demonstrate the functionality and reliability of the Bitcoin Lightning Network. The vision of @hodlonaut is that more people should use the Lightning Network. So, from Norway, the torch moved to New Jersey, USA, then to Belgium, then again across the ocean to the USA and along the chain to Mexico, United Kingdom, Monaco, France, and other countries. Moving the torch from country to country has already been visualized.
About 180 unique participants from more than 30 countries have already joined the flash mob. At press time the 185th transaction in the amount of 3,210,000 satoshis, which equals 0.0321 BTC ($116), was conducted. Leading engineers and specialists of companies implementing the Lightning Network technology have already joined the process. The community members also seek to attract opinion leaders and influencers. There are Jack Dorsey, the CEO of Twitter; Samson Mow, the CSO of Blockstream; Pierre Rochard, the Satoshi Nakamoto Institute co-founder; the famous Greek-British bitcoin advocate Andreas M. Antonopoulos; Daniel Alexiuc, the CEO of Living Room of Satoshi; the Lightning Labs co-founder Elizabeth Stark and the Satoshi Labs CTO Pavol Rusnak, the lead Monero developer Riccardo Spagni (@fluffypony), the Bitcoin Maximalist @WhalePanda are already among the participants. Elon Musk was also invited to take part, but there is no answer from his side yet. The flash mob progress can be traced on the website.
The unique LiteGo.io torch
On February 1 LiteGo.io accepted a torch in the amount of 2,550,000 satoshis from @BitcoinDetect and passed the torch with 2,560,000 satoshis. Our torch was carried by Joost Jager (@joostjgr), chief infrastructure engineer at Lightning Labs, a company that develops the Lightning Network. This transaction had an important specialty: @joostjgr carried the stick in a peculiar way through yet unreleased and not documented option to hold the payment until it was accepted by the merchant — Hodl Invoice. On January 22, 2019, Joost Jager announced this feature on his Twitter. And it was first used and tested when he carried the torch from LiteGo.io.
So what is a hodl invoice and how is it useful for LN users? When making payments through a regular invoice, the process is not controlled. The recipient bills and simply waits for the sender to pay it. At the same time, there are no guarantees: the sender may pay for the already received goods or services, and may not pay. Hodl invoice is a new “cunning” type of invoice, a way to control payment, which is characterized by a two-way guarantee.
Instead of immediately locking in and settling the HTLC (Hash Time Locked Contracts) when the payment arrives, the HTLC for a hodl invoice is only locked in and not yet settled. At that point, it is not possible anymore for the sender to revoke the payment, but the receiver still can choose whether to settle or cancel the HTLC and invoice. The sender can be sure that the recipient will receive money only after the service is completed; and the recipient, in turn, knows for sure that after providing the service or selling the goods, he will receive the money. Thus, each party can be confident in the honesty of the other. This option will be extremely useful for the antifraud, KYC, and wherever there is a need to check whether the client meets any specific requirements.
The main hodl invoice advantages:
receiver gains the ability to check a condition before settling;
a service can use a hodl invoice as an insurance against bad behavior by its users, similar to a fidelity bond;
a hodl invoice may also be created if the preimage of the payment hash is not yet known to the receiver.
At the moment the only drawback of the hodl invoice is the fact that now there are still no crypto wallets supporting this function. Thus, after sending the payment, the sender sees only that the money has been charged, but the payment has not passed, remaining in limbo until the recipient accepts it. But we are sure that engineers will solve this problem soon.
You may found more information about Hodl Invoice at Github.
Who will get the final torch?
According to the flash mob initiator @hodlonaut, there will be a vote on who should receive the final torch. The community considers such variants like Coinpanic Community Jar or Bitcoin Venezuela Iniziative. Surely, there is no guarantee of success, since the entire flash mob is a trust chain that can be interrupted in any transaction. But the community tries its best to ensure that this will not happen.
The LN Trust Chain shows really impressive results: only two scammers were caught in more than 185 transactions. So, the user with the nickname @SerWisdom69 received a torch and did not send it further. In this case, the sender of the transaction @ruben_johansen took responsibility and activated the chain again by sending a new torch to the user @1BTCequals1BTC. The second cheater later returned the assigned satoshis to the sender, who also made a repeated transaction so the chain was not interrupted.
The Lightning Network technology development is becoming more and more successful. The torch experiment even made it possible to refute criticism related to the fact that the Lightning Network is not suitable for major transactions. The BTCPay server developer @r0ckstardev has added over 1 million of satoshis to the chain, passing the torch to Jack Mallers, the founder of Zap. Now, while LN is officially at the testing stage, network payments are limited by a maximum amount of 4,294,967 satoshis (0.04294967 BTC). The problem must be solved by Wumbo channels, which enables sending of large amounts in case both nodes already support this feature. It is planned to test the Wumbo payment at the end of LNTrustChain.
It is not yet known when the experiment will be finished, and anyone can join the flash mob. You can follow the flash mob news, coordination and discussion using the hashtag #LNTrustChain in Twitter.
#LiteGo #Lightning #LightningNetwork #LN #Bitcoin #Blockchain #TaketheTorch