I always thought that lightning was inevitably going to follow the 'hub and spoke' model... where the 'hubs' probably run by exchanges and businesses would process a large majority of transactions.
And the 'spokes' would consist mostly of 'pleb nodes' that are sending through the hubs.
I don't have the sats to create a large 'routing node'... and I'm not sure I would want to anyway. I wouldn't get any sats in return probably... and I don't want to worry about it being secure enough to hold "entire Bitcoin".
. In addition to the LN’s long known application-level centralisation,
recent work has highlighted its centralisation at the network-level which makes it vulnerable to
attacks on privacy by malicious actors.
what do they mean centralization on network level?
"When gossip messages were first being collected April 2019, it was found that 10% of nodes accounted for 70% of betweenness. Since then, centrality increased to the point that the 10% nodes in the network account for 90% of centrality. That means, assuming payments occurred at random. that this 10% of nodes handles 90% of network payment traffic. This can adversely affect the privacy of the network."
Imagine I crated a huge huge number of nodes that do nothing. The number is so huge that my nodes that do nothing are 99% of nodes. So 99% of nodes do nothing and 1% of nodes handle all payments.
Has the network centralized? By this metric yes by a lot.
I always thought that lightning was inevitably going to follow the 'hub and spoke' model... where the 'hubs' probably run by exchanges and businesses would process a large majority of transactions.
And the 'spokes' would consist mostly of 'pleb nodes' that are sending through the hubs.
I don't have the sats to create a large 'routing node'... and I'm not sure I would want to anyway. I wouldn't get any sats in return probably... and I don't want to worry about it being secure enough to hold "entire Bitcoin".
I agree, LN will form a hub-and-spoke network topology more and more over time but it doesn’t prevent you from opening channels to anyone you want.
Ln test
what do they mean centralization on network level?
#20470
"When gossip messages were first being collected April 2019, it was found that 10% of nodes accounted for 70% of betweenness. Since then, centrality increased to the point that the 10% nodes in the network account for 90% of centrality. That means, assuming payments occurred at random. that this 10% of nodes handles 90% of network payment traffic. This can adversely affect the privacy of the network."
See also: the Gini coefficient
I'm not sure that is a good measure
Imagine I crated a huge huge number of nodes that do nothing. The number is so huge that my nodes that do nothing are 99% of nodes. So 99% of nodes do nothing and 1% of nodes handle all payments.
Has the network centralized? By this metric yes by a lot.
Do you know what betweenness centrality is?
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