Discussion on the lightning network of PI coin to create the most widely used digital currency basic conditions
We know that the idea of PI coin is to create the most inclusive and widely used encrypted digital token in the world, but this ideal is not to say that it is OK, at least to solve the problem that blockchain payment has been facing, that is, to deal with efficiency.
We know that bitcoin can only process about seven transactions per second. While that was enough at the beginning, the system has been crowded for several years. Therefore, it takes a long time to deal with the transaction, and the transaction cost is also high.
If bitcoin is to become a complete alternative to existing payment systems, it clearly needs to be able to compete with them. So far, it’s far from it. To understand the severity of the situation, just compare the small transactions of bitcoin 7 times per second with the average 24000 transactions of visa and the peak capacity of about 50000 transactions per second.
In fact, the payment processing capacity faced by bitcoin is a problem faced by all blockchain payment systems, and PI coin is no exception.
Over the years, the bitcoin community has put forward various suggestions on how to improve the scalability of bitcoin, but has not reached a clear overall consensus. That’s why we currently have several bitcoin like networks branching out of the original network. However, a proposed solution that is currently being tested may work. It’s called the lightning network. The lightning network of PI coin is actually built on this idea. And it is the most likely to be widely used at present, because it already has this condition.
Let’s briefly explain how the lightning network of PI coin works: in fact, many times, not every transaction must be recorded on the blockchain. In particular, some small real-time transactions, these frequent transactions will bring huge processing pressure to the whole blockchain. Therefore, the lightning network of PI coin adds another layer outside the blockchain of PI, enabling users to create payment channels between any two parties on the extra layer. These channels can exist as needed, and because they are established between two people, transactions are almost instantaneous and the cost will be extremely low or even nonexistent.
How does it work?
Enter Danny and Jon. They may be working together, they may be relatives or a couple, focusing on the need for them to send money to each other frequently, quickly and at the lowest cost. So they set up a channel on PI’s lightning network.
First, they need to create a wallet that they can access with their own private key. Then, they all put a certain number of PI coins (such as 3 PI coins each) into the wallet.
Since then, they have been able to make unlimited deals between the two. Basically, these transactions are reallocation of funds stored in shared wallets. For example, if Danny wants to send a 1Pi to Jon, she will need to transfer ownership of the amount to him. Then, the two of them sign the updated balance sheet using their private key.
The actual allocation of funds occurs when the channel is closed. The algorithm uses the recently signed balance sheet to determine who gets what. If Danny and Jon decide to close the channel after a transaction, Danny will get 2pi and Jon will get 4Pi.
Only after the channel is closed, information about its initial and final balance will be broadcast to the PI currency blockchain. Therefore, PI coin lightning network works by allowing users to make a large number of transactions outside the main blockchain, and then record them as a single transaction. You don’t even have to have a dedicated channel to send money to someone. Instead, you can send payments to someone using the channel with the person you’ve connected. The system will automatically find the shortest path.
That’s how PI lightning may eventually provide the answer to the endless debate over the purchase of a cup of coffee by PI coin. From its appearance, doing so through the PI lightning network might work, because it’s almost a single purchase and doesn’t cost anything.
Is that safe? However, it is worth noting that the lightning network concept of PI network means that the system will work on the blockchain, but in fact, it does not have its security. Therefore, it is likely to be mainly used for small and micro businesses. Large transfers requiring decentralized security are likely to be completed on the original blockchain layer of PI coin.
Well, speaking of this, can you think of what this channel is? Yes, it’s the safety circle!
It can be said that Pi coin is the best blockchain encryption token product implemented by lightning network at present. There is no blockchain 3.0 product worthy of its name. Of course, in addition to this, PI coin has several advantages, which are that it can eventually become the core competitiveness of the most widely used encryption token. We will analyze every item in the future.