Joseph Poon and Thaddeus Dryja came up with an innovative idea in their whitepaper The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments. They proposed a way to make Bitcoin highly scalable from 8 transactions per second(TPS) to about million TPS.
Since then, it has caught a lot of attention and development work in going to make lightning networks a reality. In this article, we will discover behind scenes of the lightning network.
In this article, we will be focusing on Bitcoin's Replace By Fee ( also known as RBF). This feature was proposed in BIP125 and implemented in Bitcoin Core 0.12.0. It has seen a lot of controversies and is open to debate. So, let's dive in.
In simple words, BFT lets a decentralized system function normally in an adverse situation when there is a malicious user in the system, or a fraction of the system fails.
When the majority of users in a system are ethical personals (i.e., people who follow the rules), they can override the malicious work done by non-ethical individuals. So for a system to function normally, at least 51% of users should adhere to the rules set up in the system. This gives rise to consensus, which is the general acceptance of specific rules and regulations.
How can you build a decentralized future using centralized tools? However, this is what we are doing today in the case of centralized exchanges. Multiple decentralized exchanges (DEX) are trying to solve these problems. In this article, we will talk about Bisq.