1. Experiences Working on Layer 2 Scalability Solutions Corné Plooy
Amiko Pay
Experiences Working on Layer 2 Scalability Solutions
Corné Plooy

2. A network of channels
Lightning model
De-centralized
Internet

3. Nodes and Channels
Lightning model
De-centralized
Internet

4. Different channel types
Lightning model
De-centralized
Internet

5. Channel types Done: Ripple-style IOU “channel”
Work In Progress: true Lightning channel
Lightning developers: side chain
Amiko Pay: emulation by escrow service
More important than complexity:
Missing features
These things are required for Lightning

6. Issues / Thoughts Software complexity Transaction malleability
The routing details really matter
Economic modeling of the network
More important than complexity:
Missing features
These things are required for Lightning

7. https://github.com/cornwarecjp/amiko-pay
Thank you

8. Emulation by escrow services
A+B
TCD
TCD
TCD A
OP_RETURN A
2 of A+B+E B A B
This is the Amiko Pay microtransaction channel
OP_RETURN: secure hash →
Transaction Conditions Documents
Time-out, transaction hash etc.
2-of-3 locked amount
Normally: update by Alice / Bob
Alternative: 3rd transaction signed by escrow

9. Required for Lightning Network
Fixes for transaction malleability
New SIGHASH types
Lock time evaluation in script
“OP_CHECKLOCKTIME”
Relative lock time
Optional: necessary for unlimited-lifetime micro- transaction channels
More important than complexity:
Missing features
These things are required for Lightning

10. Very rough storage estimate
$ savings per person
$1 per small transaction
___ /
unspent transactions per person
10 billion people
100 bytes per transaction
___ x
1016 bytes = TByte = block chain size
(when using block chain pruning!)
Also: 10 GByte per block
Hard disks: max density ~3 nm → 10 nm^2
→ 1 m^2 hard disk surface
→ ~100 surface layers (expensive!)
IF 100% of disk is used for block chain
Flash:max density ~100 nm → much worse
Only possibility: 3D structures (e.g. holographic)

11. 100 x 100 TByte

12. Very rough storage estimate
1 channel per person
10 billion people
100 bytes per transaction
___ x
1012 bytes = 1 TByte = block chain size
→ Factor reduction!
Also: 10 MByte per block
→ Factor 1000 reduction!
Hard disks: max density ~3 nm → 10 nm^2
→ 10 mm^2 hard disk surface
→ small fraction of hard disk