Bitcoin Diamond is Deploying the Lightning Network
Recently, COINCHECK announced the delisting of three encrypted digital currencies — Monero, Dash, and Zcash. According to the Japan Times report, this move might be in response to requirements for improving exchanges security proposed by the Japan Financial Services Agency (FSA). Also, according to Reuters report, the Court of Moscow gave a national order to block the use of communicative software- Telegram, due to its refusal to provide encrypted data to the government.
Encryption of cryptocurrencies in most cases leads to concealment of transaction details which makes it difficult for third party organizations or individuals to trace source of payments and transfers within the network ecosystem, thereby facilitating black market transactions and money laundering. Recently, The Bitcoin Diamond Foundation and its team realized that more exchanges might delist anonymous cryptocurrencies in future, which will adversely affect all anonymous digital currencies.
Bitcoin on the other hand, has become too expensive for small-scale payments due to very high fees and low transfer speed, but with Bitcoin Diamond, our goal is to create an application ecosystem, where economical and high-frequency real-time payment is implemented to improve on the bitcoin network.
However, being an anonymous digital currency may not favor effective inspection of payment information and compliance to regulations. In order to adapt to high-frequency transactions, developers of Bitcoin Diamond are adopting ‘Lightning Network’ where massive real-time transaction network will be implemented.
Lightning Network is a second layer payment protocol that works on the blockchain. It is designed for fast real-time transactions between the two parties. The main idea of the Lightning Network is to place a large number of transactions outside the blockchain which refines the off-chain transaction channels through smart contracts. Throughout the transaction, smart contracts play an important role as an intermediary, while blockchain ensures that the final transaction results are confirmed.
In view of the reasons above, The Bitcoin Diamond Foundation has decided to suspend the ongoing encryption implementation and focus on development of Lightning Network, while considering future improvements to benefit its network ecosystem, compliance to regulations as well as approval by BCD community and developers. Bitcoin Diamond version of Lightning Network is expected to be deployed on July 31, 2018, after complete assessment by developers and testers.
Team Evey & Team 007
Bitcoin Diamond Foundation
Community Twitter: https://twitter.com/BCD_Volunteer
Open Source Code: https://github.com/eveybcd/BitcoinDiamond
Lightning Network: https://github.com/eveybcd/lightning
BCD Forum: http://bbs.btcd.io/