Lightning Speed 004: What’s The Lightning Development Initiative?

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There is no denying that 2021 was the year of the Lightning Network. But what does the future hold? If the goal is to include the next billion people, the network needs work and fine tuning. To grab the bull of the horns, HRF and Strike have created three rewards of 1 BTC.

The rewards will go to the first person or team to develop an anonymous Lightning Jar, a non-token way to peg BTC to the dollar, or a privacy-focused wallet that supports some kind of Chaumian e-cash feature. In a conversation on Twitter Spaces about the program, they called it the Lightning Development Initiative.

A catchy name that we will use from now on to refer to all of this. This fourth edition of Lightning Speed ​​is about the future. Let’s explore the three ideas and the new information we have about each one.

The initiative to develop lightning in Twitter spaces

Speakers included Strike’s Jack Mallers, Alex Gladstein of the Human Rights Foundation, Christian Keroles AKA CK Snarks of Bitcoin Magazine, and Tales From The Crypt’s Matt Odell. It was held on December 29 and hosted by Bitcoin Magazine. A Twitter user named Gigi summarized it for us.

A thread summarizing the space of the Lightning Development initiative ⬇

3 Surprisingly topic related to rewards are discussed.

I am very optimistic about Lightning⚡

This painful. So grateful to have these people by our side ❤👑

Let’s take a look at my notes 🧵

pic.twitter.com/PRs9cohPaN

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🇨🇵 (@GuerillaV2) December 29, 2021

Bounty #1: Anonymous Advice Jar

In the Bitcoinist sister site report, they describe the challenge as follows:

“Can you create a Lightning jar tip that doesn’t reveal any information about the parties involved? This is the first task. How to get your donations completely anonymous.” According to Bitcoin Mag, “The goal is to enable anyone to use Free and Open Source Software (FOSS) to print tokens. QR that can be used to receive Lightning payments privately. Most importantly, “The QR code must not reveal the user’s public key or IP address”.

In the Lightning Development Initiative report, we learned that this has something to do with the two competing protocols, Bolt12 and lnurl. Jack Mallers pointed out the absolute need for interoperability on the Lightning Network and that while lnurl may not be “optimal” at the moment, the market will ultimately decide what open standard it prefers to use. He believes that UX is currently a major focus for the Lightning community and we must come to terms with the fact that there will be competition between solutions.”

Rockstar has indicated that this controversy over lnurl and bolt12 will have major implications for the future, but is happy that there is now an active discussion on the matter.

Jack added that unlike the main Bitcoin chain, we can fairly afford LN..

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🇨🇵 (@GuerillaV2) December 29, 2021

Mallers put forward another interesting idea, “Unlike the main Bitcoin chain, we can fairly afford f**k on the Lightning Network. As long as Bitcoin monetary policy is not threatened, we can freely tamper with the protocol via Lightning.”

BTC Price Chart for 01/14/2022 on Bitfinex | Source: BTC/USD on TradingView.com
Bonus #2: Stable Coin on Lightning Without Token

The Bitcoinist described this person as:

The second challenge seems to be more difficult, at least on a conceptual level. HRF and Strike both want a wallet that enables “anyone to ‘peg’ an amount of bitcoin to the US dollar without the need for an exchange or other token.” That’s right, without a central entity. And rely only on sats and bitcoin.”

Gigi sums up why the world needs this:

The goal is to allow people to access dollars without any point of failure. Moreover, as Bitcoin becomes less volatile, these people can use btc, but until then, there is a high demand for holding the value in dollars. The market value of the rope is proof of that.”

It serves an important human use case. We need to create the foundation for this new financial system. @Chris_Stewart_5 >> Maybe this can be done with DLC? Don’t use a token but something that represents price exposure (think Eurodollar system). (Oracle?)

the end.

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🇨🇵 (@GuerillaV2) December 29, 2021

Bonus #3: Chaumian e-cash feature

First of all, Investopedia defines Chaumian electronic money as:

“eCash was a digital system that made it easy to transfer money anonymously. As a pioneer in the cryptocurrency space, her goal was to secure the privacy of individuals who use the Internet for micropayments. eCash was created by Dr. David Shum under his company DigiCash in 1990.”

So, again, anonymity is the priority. As Alex Gladstein said when announcing the grants, they are “the first open-source, non-custodial, non-know your customer wallets to ship the features demanded by defectors around the world.” Also, consider the words of security expert Brian Trollz, “Bitcoin without privacy is nothing but a surveillance system.”

Bitcoin without privacy is nothing but a monitoring system.

– Shino (@brian_trollz) January 13, 2022

What does Gigi have for us on this subject? “We need some kind of electronic money from Chaumian, very easy to use for the Plebs family and accessible. Perhaps the solution is federal, which makes it difficult to regulate.” He then quotes Jack Mallers again, “There will be a unique standard for the Internet of Money (Bitcoin). Many will compete for the top of bitcoins, so we need ‘interoperability by the standard’.”

Matt: We need to make it very easy to use because experience shows us that if it’s a bit hard (coins joined etcc) people won’t bother protecting their privacy (damn foolish rules 🤡

)

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🇨🇵 (@GuerillaV2) December 29, 2021

Conclusion: the future is bright

Developers, teams and companies, anyone can earn Lighting Development Initiative rewards. The non-profit organization OpenSats will act as judge. All are open all year round. If no one claims it by the end of 2022, the money will go to the Human Rights Foundation’s Bitcoin Development Fund on January 1. Which is fair. Especially considering that they have just given 425 million Sats to these worthy organizations and individuals.

For more information and details, read the original Bitcoinist report.

Featured image by Micah Tindell on Unsplash | Charts by TradingView

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