A possible second-layer solution for Bitcoin Cash BCH. Lighting Network and sidechains.

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Avatar for francis105d1
2 years ago

I know that Bitcoin Cash has smart contracts tokens and that you can use BCH without paying too much for cost, but I was thinking, and at this point, it is just that, thinking. Why not create a Lightning Network service that will use many of the tools BCH already has to scale Bitcoin Cash to the next level. Let me explain.

Local.bitcoin.com can create escrow because if I am not wrong because of something called OP codes or something like that, the point is when you use that site to buy Bitcoin Cash, that tool lets the users place funds on escrow so that if later there are dispute administrators can decide to where funds will go. But the administrator doesn't hold the funds themselves; they only decide.

We now have SmartBCH, which brings Smart contracts capabilities to Bitcoin Cash. It is another network on itself that is peg one to one to BCH, and that runs parallel to later one; this network will be good because it will bring what Ethereum does, but with a network that minds transaction fees as such, users will have a better experience when using the web because the network will improve over time and always having in mind usability of the network today and in the future.

Lighting Network on Bitcoin Cash.

The truth is transaction fees on BCH are cheap, so far, I have never paid more than 0.00001 bch for transactions, so I may say that we don't need LN for transactions if we only count the need for cheap transactions.

But there is one moment when BCH may need LN. If you need to send or receive one satoshi for whatever reason, sending or receiving 0.00000001 BCH is pretty much impossible on-chain at the moment unless that satoshi represents some other value like a token or something else. But just using one satoshi with current on-chain fees and theory is unpractical because it is not even dust.

But in this case, BCH price goes up, and one satoshi becomes more valuable than many fiat currencies. Implementing a way to spend one satoshi could become an excellent thing; I would say that LN on BCH will be an actual plaything at first until the value of one satoshi comes to parity with many other fiat currencies.

Because BCH has at the moment 32 MB blocks, that will mean that opening and closing channels will be much cheaper, as such routing fees will also be very cheap; in the case of BCH LN nodes, they would not have to charge large amounts for their liquidity because opening and closing channels will be very affordable as well, in other words even LN makes more sense on BCH than on the Bitcoin BTC.

Using one satoshi is indeed only possible on LN at the moment. Still, other solutions may be invented to address this if it becomes necessary to use a single satoshi for transacting on small transactions.

You can expect the propaganda machine of Bitcoin Core BTC to go crazy if BCH developers start to work on LN for the BCH project, saying things like you see they realize they need second-layer solutions. Still, in the case of BCH, it won't be to scale BCH but to bring the use of the smallest part on the BCH currency.

The use of one satoshi will only be needed if you want to represent another value or transact on the smallest unit on BCH. I don't know if BCH will ever implement an LN protocol or if something else will be invented. Still, I think that eventually, the one satoshi usage will come to Bitcoin Cash but don't worry, that's not going to happen any time soon, more like years if it happens at all.

I would also add that using one satoshi could be possible within future sidechains made just with that purpose in mind.

Conclusion.

The added ability for Bitcoin Cash to make use of Smart Contracts thanks to SmartBCH adds more tools for those wanting to have financial freedom; I don't know if LN will be implemented on BCH because for cheap transactions, the network doesn't need it to save on fees, but it could add functionality to the smallest unit (one satoshi). It doesn't have to be an LN-like network but something similar to SmartBCH, a sidechain just created for small transactions where you only need satoshis.

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2 years ago

Comments

I don't know if you came up with this idea but it look pretty great to me, with a network like this, I think it will open more transactional possibilities

$ 0.03
2 years ago

Yeap, it does, but it is not needed at this moment. My article was just a possible future sidechain that could be created once the 32MB blocks get filled on BCH.

$ 0.00
2 years ago

This sounds really great that smart BCH added new features or tools as you said. More progress expecting from BCH.

$ 0.01
2 years ago

Yeap, smartbch is indeed a second layer solution that adds up capabilities to BCH without increasing the layer one blockchain, but the use of one satoshi is not yet possible as long as I know, nor does it have economic importance at this moment.

$ 0.00
2 years ago

Smartbch one of the best emerging site that really great and people really enjoyed this one also

Still 25 million people using this site having a great time also

$ 0.01
2 years ago

It is not a site it is a network

$ 0.00
2 years ago

Okay my mistake it's a network

$ 0.01
2 years ago