What is the Bitcoin Lightning Network and Twitter integration?
In January 2016, the Lightning Network was first touched on by two researchers, Thaddeus Dryja and Joseph Poon, in their paper titled "The Bitcoin Lightning Network." The authors drew on Satoshi Nakamoto's discussions of payment channels. There is an off-chain protocol defined in the paper, which is composed of payment channels. Due to the fact that channels exist off-chain, two untrusted parties can send value without causing congestion on the mainnet. It approaches Bitcoin's scalability problem and it is designed to be solved by using off-chain channels.
Founded later in 2016 by Thaddeus and Joseph along with a few others, the company “Lightning Labs” was created with the purpose of being dedicated to building the Lightning Network. The Lightning Labs team worked to make the protocol compatible with Bitcoin despite constant changes in team members.
Lightning Network is a decentralized platform for micropayments that delivers instant settlements in high volumes and removes the risk of delegating security management to third parties. With Bitcoin, the world's most widely used and valuable digital currency, you don't need a third party to initiate transactions.
Developers were able to instantly build apps on the Lightning Network after pre-launch testing. Wallets and casino platforms were among the apps which used the Lightning Network's microtransactions. As they developed the network they opened up the use to people paying for goods and services, utilizing apps, gambling, and plenty more.
Users can program instructions for funds using Bitcoin's advanced scripting system. However, bitcoin's decentralized design has some drawbacks. Bitcoin blockchain transactions are irreversible after an hour after confirmation. A micropayment is a transaction worth less than a few pence, but these transactions are inconsistently confirmed, and fees rendered them unviable. Lightning Network solves these issues.
It is a Multi-Party Smart Contract built using the scripting functionality of bitcoin. Lightning Network is considered to be one of the most innovative technological developments in bitcoin multiparty financial computations. Introducing features like instant payments, micropayments, and increased scalability.
All parties on this network have multiple multisignature channels with many different users, so anyone can send a payment to anyone else on the network. By making a payment dependent on the knowledge of a secure cryptographic hash, payments can be made across a network of channels where no single party has unilateral custody over funds.
Through the Lightning Network, something previously not possible with trusted financial systems susceptible to monopolies has become possible; without the need for custodial trust and ownership, participation in the network can be dynamic and open to all.
Fortunately for the Lightning Network, adoption is increasing, and there is currently more than $123 million in Bitcoin locked up in Lightning Network.
Some apps are vital to network usage, such as Lightning Network compatible wallets. Considering that the Lightning Network is a separate protocol from Bitcoin’s mainnet, it requires a different type of wallet so users can create payment channels.
Lightning Labs finally launched its Lightning Network implementation on the Bitcoin mainnet in 2018. As a result, public figures began taking part in the project, including Twitter CEO and founder Jack Dorsey a longtime early Lightning Labs supporter.
He, for example, paid a team of developers in Bitcoin to develop Lightning Network exclusively and invested in the startup's $2.5 million seed round. He also at that stage planned to integrate Lightning Network into Twitter in the future.
As of this September, Twitter has begun to integrate the Lightning Network with Apple's iOS and has allowed users to connect their third-party tipping services with their profiles on the social media site.
A key step in the evolution of the booming trend for unique digital art will be the integration of Lightning Network and Bitcoin addresses, as well as NFT verification features.
Users with large followings on Twitter can use this feature to make their content more monetizable. According to Twitter, it will not take a portion of tips. A variety of payment options and tipping services will be available to users worldwide.
NFT verification is arguably as important as Twitter's new tipping feature. Even celebrities like Jay-Z have displayed CryptoPunks with multimillion-dollar values over the past six months.
The company also announced plans for more automated content oversight, providing users with more authority over their personal experience on the site, and long-term monetization.