What is especially important to have on the radar in the new year in the crypto world? We have identified eight different topics on which a lot will happen next year. The trends 2020. The Bitcoin Lightning network, not just a retail payment solution.
This article is part of a cooperation and was originally published on 10×10.ch
Bitcoin Lightning Network in dealing with exchanges
At the beginning of the year, the lighting network recorded a fairly strong inflow of Bitcoin. From mid-May onwards, however, the BTC volume in the Lighting network declined again (for limited reliability of Lighting metrics, see here). The announcement of Bitfinex to offer a lighting implementation is certainly interesting. This could give the network a new boost and lead to some more Exchanges – so far Lighting has been enabled by smaller, unknown projects.
From a fundamental point of view, the question arises to what extent something will actually change for the trader. Lightning bitcoins are credited to the trader at Bitfinex via a proprietary token called LNX. This increases the attack vectors and is therefore all the more alarming from the user’s point of view. After all, Lightning-Bitcoin itself is a Bitcoin surrogate. They are cryptographically secured and offer the user power of disposal, but as long as they are not written to the blockchain, they are not actually Bitcoin. With its proprietary solution, Bitfinex raises the level of abstraction.
Transfer between exchanges
In general, the majority of cryptoassets are traded off-chain via order books on crypto exchanges anyway. Movements on the blockchain itself are minimized for cost reasons. The counterparty risk is the exchange – not the blockchain. Possible solutions, which will (hopefully) gain momentum in 2020, are already in the works.