A Market Sizing Exercise to Explore the Impact of the Lighting Network Messaging on Routing Fees Earned

The combination of Type-Length-Values (TLVs) and Keysend have paved the way for Lightning based messaging services to emerge such as Sphinx Chat, Juggernaut and SendMany. Lightning messaging works simply by attaching a message or other data to a lightning payment. Messaging over Lightning from a privacy standpoint is vastly better than centralized services such as Whatsapp and Telegram as it provides end-to-end encryption, censorship-resistance, peer-to-peer messaging and payments.

In this paper I will explore the potential impact on routing fees earned in the Bitcoin Lightning network with the introduction and adoption of Lightning based messaging services through a market sizing…


Bitcoin and Lightning Network News

Major Headlines

1.) Payments provider Square has won a U.S. patent for a new network that enables seamless crypto-to-fiat transactions

2.) Bitcoin’s lightning torch is back, and it’s zipped through at least 38 countries already

3.) Pieter Wuille has opened a PR with the code implementation of BIP and Taproot & Tapscript

4.) Lightning Labs releases lnd v0.9-beta that includes multi-path and spontaneous keysend payments, macaroon bakery for fine-grained permissions, circular payments for liquidity management, and a SDK for mobile

5.) Square Crypto announces that they’re building the Lightning Development Kit, or LDK

6.) The Virtual Currency Tax Fairness Act of 2020…


Bitcoin and Lightning Network News

Major Headlines

1.) Amazon and Ring, the two companies are being sued for $5 million after they sold vulnerable cameras to their users. Apart from the plaintiff, Alabama’s John Baker Orange, multiple other families from across the US have reported being disturbed and harassed by online criminals who hacked their cameras

2.) You buy a home monitoring camera to improve your security, but Wyze customers might have wound up achieving the opposite. The company, which makes $20 security cameras to pepper around your home, has admitted that data on more than 2.4 million users has been exposed. …


Bitcoin and Lightning Network News

Major Headlines

1.) The SEC proposes to update the Accredited Investor definition to increase access to investments

2.) Phoenix Wallet is a 2nd generation non-custodial Lightning Wallet packed with new features such as:

  • Pay-to-open. Phoenix will automatically create a channel on-the-fly if you don’t have enough inbound liquidity to receive a payment.
  • Spend-unconfirmed. Also known as turbo channels. Allows you to use channels as soon as they are created, without having to wait for confirmations.
  • Peer backup. No more headaches with channels backup. Just reinstall the app, enter your 12 words, and your money will be there.
  • Zero-reserve + AMP. This allows…


Bitcoin and Lightning Network News

Major Headlines

1.) BTSE, a Dubai-based cryptocurrency exchange, is looking to raise $50 million in one of the first token offerings on the Liquid Network, the parallel system to bitcoin created by startup Blockstream

2.) According to data compiled by Coin Metrics, the number of Bitcoin addresses that hold any amount of satoshis reached a new all-time high between October and November 2019. According to the data, more than 28,393,045 addresses held some balance of bitcoin in that period, eclipsing a previously achieved all-time high of 28,384,557 accounts in January 2018

3.) The Bitcoin-based DApp network Echo announced the launch of a…


Bitcoin and Lightning Network News

Major Headlines

1.) Two of the most prominent Bitcoin companies in the space are collaborating: Bitfinex users can now shop at Bitrefill, straight from their trading environment on bitfinex.com. With access to the entire Bitrefill catalog, Bitfinex customers can use their account balance to buy a wide range of gift cards or to top up their prepaid phone credit. And, enabling the transfer of funds between Bitfinex and Bitrefill, the two companies have established a customized Lightning channel

2.) Bitcoin mining giant Bitfury has taken another step in its transformation into an enterprise blockchain software developer. Bitfury today launched Exonum Enterprise, the…


Bitcoin and Lightning Network News

Major Headlines

1.) Civil liberties advocates just scored an important victory in a bid to prevent arbitrary device searches at the US border. A federal court handling a 2017 lawsuit has ruled that US policies allowing device searches without valid suspicion or warrants violate Fourth Amendment protections against unreasonable searches and seizures

2.) November 24, 2019, marks the official release of Bitcoin Core 0.19.0.This latest major release was developed by over a hundred contributors over a span of about six months. The result of 550 merged pull requests, Bitcoin Core 0.19.0 …


Bitcoin and Lightning Network News

Major Headlines

1.) Bitfinex announces support for bitcoin bech32 address generation and deposits

2.) Square processed $148 million in bitcoin sales in the third quarter of 2019 and claims that first-time bitcoin buyers ‘doubled’

3.) Last week Lightning Labs developer Joost Jager revealed an experimental, new proof of concept: Whatsat, a version of lightning that can be used to send private messages. Like bitcoin, it’s censorship-resistant. But, unlike encrypted apps that morph messages into unreadable, garbled text to keep messages from prying eyes, there’s no central entity to stop users from employing the network.

4.) Intercontinental Exchange’s bitcoin subsidiary announced Monday it…


Bitcoin and Lightning Network News

Major Headlines

1.) On Oct. 30, 2019, the bitcoin blockchain reached $1 billion in cumulative transaction fees

2.) Bitmex experienced an email privacy issue impacting their customers. Bitmex has stated that they’ve identified the root cause of the issue and will be in touch with any users affected

3.) Halloween 2019 marked the eleventh anniversary of the release of the white paper for the first fully decentralized, peer-to-peer electronic cash by anonymous creator(s) Satoshi Nakomoto

4.) Crypto derivatives exchange BitMEX is implementing major changes to the weights of its indices later this month, according to an announcement published today, Nov. 1. …


Bitcoin and Lightning Network News

Major Headlines

1.) This past weekend, bitcoiners and lightning fanatics gathered in an industrial Berlin sector for the first-ever Lightning Conference. With topics ranging from onboarding and interface design to the vogue economics of the nascent payment layer, Lighting Conference attendees said the event had the feel of bitcoin’s early days

2.) Bitcoin derivatives provider Bakkt has announced the launch date of an options contract for its bitcoin futures. The firm will launch the first regulated options contract for bitcoin futures on Dec. 9. …

LightningHood

As Bitcoin and Lightning Network enthusiasts, we value Privacy and Financial Sovereignty as fundamental rights for a free society. https://lightninghood.com

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store