How Lightning Could Enable Decentralized – Bitcoin Magazine

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This is an opinion editorial by Kishin Kato, the founder of Trustless Services K.K., a Japanese company focused mainly on Lightning Network research and development.

This is the third article based on the content of the “Understanding Lightning” report produced by the Diamond Hands community, the largest Lightning Network community in Japan. The report aims to provide an overview of Lightning’s technology and ecosystem for a non-technical audience. The first article can be found here, the second can be found here.

Previous articles in this series have covered how the Lightning Network excels in its payments use case and the possibilities it currently enables. While retail payments and international remittances are extremely powerful use cases for Lightning by themselves, much more is possible.

In this article, we will explore some advanced use cases that Lightning may enable in the near future, with a particular focus on enabling various application use cases.

Enabling Peer-To-Peer Finance

When compared to other payments technologies, one of the defining characteristics of the Lightning Network is its peer-to-peer architecture. Although it is important to acknowledge that not everyone will realistically run their own Lightning node, it is already relatively simple and straightforward to set up and operate one for personal use, and we can expect best practices for businesses operating Lightning nodes to become more widely established in the coming years. Ultimately, these factors will enable simple and complex financial services to be delivered on a peer-to-peer basis over the Lightning Network.



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