Lightning is the common language of the Bitcoin economy

One of the best things about running Breez is getting to meet and work with so many different people. We have partners from other countries including Jamaica, USA, Switzerland, Germany, Canada and Estonia. We have users almost everywhere, including Finland, Wales, Namibia, and India. The people behind Breez span three continents and come from diverse national and ethnic backgrounds.

Agreement on communication platforms (Telegram? Slack? Zoom? Discord?) sometimes requires some tweaking. But what never needs adjustment is language We use it to communicate. It will always be in English automatically. For many of us, English is a second (or third or fourth) language, and while some of it may be embarrassing, it doesn’t matter. All initial contact will be in English, all channels will automatically be in English, and all public communications (e.g. this blog) will be in English. There isn’t even a contender for second place.

There is basically no way to change this rule. No one can say for sure that we will all start speaking Mandarin, Esperanto, and Inuktitut. The English language is stuck because of convenience, practical usefulness, historical imposition, or sheer numbers. But it works, so why mess with it?

This example illustrates a few things: First, the interface between individual nodes in the network, such as people, countries, and communities, takes the form of language. Second, there must be a common language. In fact, the limitations of language are the limitations of networks. In other words, the distribution of language Define the network. Finally, a common language is very sticky. Once everyone adapts to a common language, it’s basically fixed.

Now let me tell you facts about the present that will irrevocably shape the future. Lightning is emerging as the common language of the Bitcoin economy.

Common language between subnetworks

We’ve talked about various last mile technologies before. This is like a local secondary road connecting users to the higher throughput Lightning Network and ultimately the Bitcoin mainnet. They all basically work by grouping users and transactions into subnetworks.

For example, Ark and Liquid convert incoming Bitcoin into their own mechanisms (VTXO and L-BTC, respectively), allowing users to send them to each other according to their respective protocols without additional on-chain transactions. Alternatively, Fedimint members effectively pool bitcoins and trade IOUs with each other, with transactions and treasuries overseen by a coalition of trusted guardians. Cashu allows people to exchange electronic cash tokens and trust the issuing entity.

Each kind of subnetwork can use its own language. How nodes communicate with each other in these subnetworks is their business. What’s interesting is that these subnetworks Connect with each other through Lightning.The same goes for example when talking about two different Cashu mints or when Fedi interacts with Ark. Lightning is the common language of all emerging and thriving subnetworks based on Bitcoin.

Going back to the English analogy, it doesn’t matter to me what language you use at home or in the supermarket. You can speak any obscure dialect you want with others who understand it. But if you want to talk to me or anyone else via Telegram or Slack, English is your only choice. No one can change that, no matter how much they want to, and no one seems to want to. Like lightning.

Lightning is the common language of emerging subnetworks. This is the language of Bitcoin.

Why Lightning is the Best Language for Bitcoin

all Common Language is not necessary optimal language. It should work and be widely accepted. Just as the Bitcoin mainchain has certain advantages (e.g. immutability, openness, borderlessness, etc.) that make it recommended for certain uses, Lightning is the best choice for a common language between subnetworks for at least three reasons.

Lightning is Bitcoin, and Bitcoin is a trustless bearer asset.

The first and perhaps most important reason why Lightning is the best common language is because Lightning uses Bitcoin. Simply put, subnetworks may not trust each other, and there is no reason for them to do so. However, Bitcoin and Lightning avoid trust, allowing subnetworks to interact without trust. Since Bitcoin is the only viable bearer asset and Lightning is the language of Bitcoin, Lightning is the best common language for subnetworks to interact with each other.

Additionally, like Bitcoin, Lightning also avoids leverage. The entire business model of fractional reserve banks is based on holes in their balance sheets. In contrast, every seat in the Lightning is counted every minute. A balance sheet showing all positions in the network is maintained in perpetuity. balanced. There are no gaps and no overlap. Lightning resists the imbalance caused by arrogance, incompetence, and villainy, a necessary feature in a trustless environment.

Lightning is inherently transactional and interoperable.

Second, Lightning is a transaction protocol designed to facilitate flows. For normal payments, there is no mempool and no delay until the next block is mined. If so, payment will only take a few seconds. And deals, or cash movements, are what makes the Lightning valuable. to the letter. Static sats on the network do not earn any revenue. For Lightning to become more liquid, liquidity needs to flow. If silence is rewarded, common language will not be used as much. This should facilitate communication, which is exactly what Lightning does.

Additionally, Lightning technology, detailed in the Bolt Specification Catalog, is inherently interoperable. It is designed to enable multiple implementations of Lightning Nodes using a variety of designs, trade-offs, and programming languages. However, all of these nodes support the same vault, so they can interact through a common network. Because it is interoperable by design, other technologies can easily add Lightning as another interface.

Lightning has critical mass

Finally, a common language requires a sizable community of speakers. In a nursing home or nursing home in Cambodia, try saying “skibidi rizz”. Perhaps the biggest advantage of English is its popularity. More people speak English than any other language on Earth. Although only a quarter of the inhabitants of many countries speak English, you can still find an English speaker at the next table in almost every bar and restaurant on the planet. Try it in Catalan.

Lightning has already achieved critical mass. It is already clear how the Cashu subnetwork and Fedimint subnetwork communicate with each other. That is, Lightning. This is how it was designed, so switching the common language between networks would require rebuilding most parts. Like English, whatever language your subnetworks use internally, Lightning is the language they use to talk to each other, and that’s already fixed.

lightning permanence

Actual lightning from storm clouds is a very short-lived phenomenon. All it does is flash and disappear for a moment. But the Lightning Network, the interface between multiple nodes, subnetworks, and the Bitcoin mainchain, isn’t going anywhere. Common languages ​​tend to retain their status for centuries.

Bitcoin is the world’s leading currency. Lightning is and will continue to be the common language of the Bitcoin world. For those of us already established in Lightning, this is great news. Lightning being locked down means our first-mover advantage is actually very valuable.

But this is also good news for those just getting into Lightning or considering it. This eliminates uncertainty about which technologies to support and invest in. Lightning isn’t going anywhere but upward, so it’s never a wrong time to get started. Yesterday is better than today, today is better than tomorrow, but tomorrow is better too.

The best time to join Lightning is now. It’s always been like that.

This is a guest post by Roy Sheinfeld. The opinions expressed are solely personal and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.