Mathematical Proof That the Lightning Network Cannot Be a Decentralized Bitcoin Scaling Solution

“using a network of these micropayment channels, Bitcoin can scale to billions of transactions per day”

PART I: OVERVIEW OF LIGHTNING NETWORK

The Bitcoin Scaling Debate

What is the Lightning Network and How Does it Work?

Linking Multiple Channels

The Envisioned Network

“Decentralized” Vs “Distributed” Semantics

PART II: AN EXPLANATION FOR THE LAYMAN: WHY THE LIGHTNING NETWORK CANNOT SCALE

It Starts Off Like a Basic Math Problem

Your Money Can’t Be In Two Places At the Same Time

Everyone is Lending to Everyone Else

It Means a Large Number of Hops is a Deal-Breaker

In Reality, It’s Even Worse

The “TLDR” Summary

Conclusion: A Completely Unworkable System

PART III: INFORMAL MATHEMATICAL PROOF

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Final Thoughts

 by the author.

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