Lightning Network’s Configuration Becomes Increasingly Centralized, Multiple Hubs Being Formed
Lightning Network’s Configuration Becomes Increasingly Centralized, Multiple Hubs Being Formed
February 22, 2020
Lightning Network’s Configuration Becomes Increasingly Centralized, Multiple Hubs Being Formed
Lightning Network’s Configuration Becomes Increasingly Centralized, Multiple Hubs Being Formed
February 22, 2020

The Lightning Network’s (LN) configuration is becoming increasingly centralized, with multiple hubs being formed, as this is the finding of a yet-to-be-reviewed research paper, released on pre-print site arXiv on February 7.

It has been reported that a team of academics from Switzerland, France, Italy, and Canada authored the paper, as Jian Hong-Lin and Kevin Primicerio conducted the analysis, while others, including Christian Decker, the Researcher of Blockstream Inc. designed the research.

However, the team gathered Lightning Network information for a period of 18 months from January 18, 2018, to July 13, 2019. Researchers then analyzed the payment network in terms of its node and wealth distribution.

They discovered that the network showed high Gini coefficients both in terms of node centralization and wealth distribution. Notably, the values were found to rise as more nodes were added.

ALSO READ :  Uttar Pradesh To Become First State In India To Launch Blockchain-Based Solar Energy Trading

It has been analyzed that the distributions of Bitcoin across every node in the network were found to be extremely uneven as well. The Gini index amounts to 0.88, which corresponds to 10% of nodes holding 80% of BTC.

The goal of the research was to understand which idealized model best describes the network. While researchers identified the Undirected Binary Configuration Model (UBCM) as a good candidate, the network was found to be more centralized than expected.

The researchers concluded:

“This suggests that the BLN [Bitcoin Lightning Network] is becoming an increasingly centralised network, more and more compatible with a core-periphery structure.”

However, The UBCM system does imply a degree of centralization, which would result in the presence of several hubs. Researchers argue that the actual network appears to be too reliant on them, which could make it a “target for the so-called split attacks.” 

The research paper follows findings by BitMEX Research focusing on the higher than expected amount of “uncooperative closures.”

ALSO READ :  Indian Crypto Bulls Roadshow Describes Itself As Not-For-Profit Initiative

Likewise, the network is currently hosting more than 11,500 nodes, with an average node capacity of $1,300 and the average channel capacity of just under $240. The network had reached 10,000 nodes in September 2019.

Thus, the journey has also seen some stumbles, with reports of users temporarily losing money through LN, as the vulnerability was also disclosed in September, with some reports noting that it was exploited “in the wild.”

Source: cointelegraph.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.