Features of Atomic Swop and Lightning network:
A blockchain is a decentralized, distributed and public digital ledger that is used to record
transactions across many computers so that the record cannot be altered retroactively
without the alteration of all subsequent blocks and the collusion of the network.
What does "censorship resistance" mean in the context of blockchain?
• There are two ways about censorship resistance.
• One is about how a transaction once entered into the blockchain is very hard to alter.
• The other is something less people seem to talk about: *anyone* can transact on the
blockchain and a transaction, once made and paid for, cannot be stopped.
• Compare this to Mastercard stopping transactions to Wikileaks years back, or banks
freezing accounts. You cannot do that on a proper blockchain, hence it defies censorship.
• A proper blockchain is free to join and leave and while you are participating in it, your
transactions are yours, no one elses.
A decentralised system in systems theory is a system in which lower level components
operate on local information to accomplish global goals.
Consensus achieved using Proof-of-Work.
Consensus without Mining - Proof of Stake
Five Imminent Mainnet Launches To Watch
• Atomic Swop:
− Cross-chain trading
→ different chain can do inter swop without the need of a third party
→ utilizes what is known as hash time-locked contracts (HTLCs).
(HTLCs- ensure that the atomic swap process is completely trustless by ensuring both fulfill the requirements of the trade. HTLCs require the recipient of a payment to acknowledge receiving payment prior to a deadline by generating a cryptographic proof of payment. Or the recipient risks losing the right to the claim the payment, therefore returning the funds back to the sender).
− Requirements of Atomic Swaps
→ there are some fundamental requirements for a cryptocurrency before it can successfully support atomic swaps. One such requirement is the implementation of the Lightning network.
→ If a hash time-locked contract can be thought of as linking two blockchains together,
the lightning network can be thought of as linking payment channels together. The lightning network allows for that.
− Changelly exchange (one of the examples)
• Lightning Network
− a decentralized system for instant, high-volume micropayments that removes the risk of
delegating custody of funds to trusted third parties.
− Instant Payments
→without worrying about block confirmation time
→don't need block confirmations, and are instant and atomic. Lightning can be used at
retail point-of-sale terminals, with user device-to-device transactions, or anywhere
instant payments are needed.
→ low fees
→ New markets can be opened with the possibility of micropayments. Lightning enables
one to send funds down to 0.00000001 bitcoin without custodial risk.
→ Lightning Network transactions are conducted off the blockchain without delegation of
trust and ownership, allowing users to conduct nearly unlimited transactions between
− Paylah (example)