Scaling the Blockchain: Lightning Network Nikolay Angelov Blockchain Developer

Blockchain Has Issues with Scaling

Transaction throughput - Block Size 1 MB + - Block Time ~10 Minutes

Transaction throughput tps transactions second per

Transaction throughput Bitcoin 7 tps Visa handles 6 000 tps Capacity Up-to 65 000 tps

Transaction throughput We need Bigger throughput

Nikolay Angelov Blockchain Trainer Software Engineer Gamer - FOR THE HORDE! Nikolay@Nikolaytech.com /ghkgk /in/Thedi www.Nikolaytech.com

Transaction throughput 10 - Block Size 1 MB + - Block Time ~10 Minutes Seconds

Lightning Network

Lightning Network Layer 2 Off-chain Approach Payment Channels

Lightning Network Bar Bob 5 BTC 0 BTC Source: http://sketchydrawings.blogspot.com/2012/05/irish-pub.html Bar Bob

Blockchain (Layer 1) Bar Bob 5 BTC 0 BTC 5 BTC 0 BTC 4 BTC 1 BTC 2 BTC Source: http://sketchydrawings.blogspot.com/2012/05/irish-pub.html Bar Bob

Blockchain (Layer 1) Bar Bob 3 BTC 0 BTC 2 BTC 5 BTC 5 BTC 0 BTC 4 BTC Source: http://sketchydrawings.blogspot.com/2012/05/irish-pub.html Bar Bob

Lightning Network Peter Bob The Office is Boring Let’s go to my favorite Bar The Office is Boring GO GO GO 15 BTC 20 BTC Peter Bob

Bob Bar Peter 5 BTC 0 BTC 15 BTC Round on me 20 BTC Source: http://sketchydrawings.blogspot.com/2012/05/irish-pub.html 20 BTC Bar Peter

Lightning Network No need of Trust You can recover at Any Time

Lightning Network Reduces the load on the Chain Removes Small transactions

Lightning Network

Lightning Network 4,200 Nodes 12,500 Channels 450 BTC Locked

Basis of Lightning Technology (BOLT) https://github.com/lightningnetwork/lightning-rfc

Lightning Network Run your Own Node https://medium.com/@dougvk/run-your-own-mainnet-lightning-node-2d2eab628a8b

Thanks! Nikolay Angelov Any questions? Find me @ Nikolay@Nikolaytech.com www.Nikolaytech.com /ghkgk Any questions? /in/Thedi