The Lightning Network'southward (LN) configuration is becoming increasingly centralized, with multiple hubs being formed. This is the finding of a yethoped-for-reviewed research newspaper, released on pre-impress site arXiv on Feb. seven.

A squad of academics from Switzerland, France, Italy and Canada authored the paper. Jian Hong-Lin and Kevin Primicerio conducted the assay, while others, including Blockstream Inc. researcher Christian Decker, designed the research.

Core-periphery model

The team gathered Lightning Network information for a menstruum of eighteen months from Jan. 18, 2022 to July 13, 2022. Researchers and then analyzed the payment network in terms of its node and wealth distribution.

They discovered that the network showed high Gini coefficients both in terms of node centralization and wealth distribution. Notably, the values were found to ascension as more nodes were added.

The distributions of Bitcoin (BTC) across every node in the network was found to be extremely uneven as well. The Gini index amounts to 0.88, which corresponds to ten% of nodes holding 80% of BTC.

The goal of the research was to understand which idealized model best describes the network. While researchers identified the Undirected Binary Configuration Model (UBCM) as a good candidate, the network was constitute to be more than centralized than expected. The researchers ended:

"This suggests that the BLN [Bitcoin Lightning Network] is condign an increasingly centralised network, more and more compatible with a core-periphery construction."

An idealized network graph based on LN data on days 16 and 34. Blue represents hub nodes

An idealized network graph based on LN data on days sixteen and 34. Blue represents hub nodes. Source: Research paper.

The UBCM system does imply a caste of centralization, which would event in the presence of several hubs. The actual network appears to be also reliant on them, which could make it a "target for the so-called split attacks," researchers fence.

Actual LN graph on days 16 and 34. Orange and red represent hub nodes

Actual LN graph on days 16 and 34. Orange and cerise correspond hub nodes. Source: Research paper.

The research paper follows findings by BitMEX Research focusing on the higher than expected corporeality of "uncooperative closures."

Lightning Network Progress

The network is currently hosting more than than 11,500 nodes, with an average node capacity of $1,300 and boilerplate channel chapters of merely under $240. The network had reached 10,000 nodes in September 2022.

The journey has too seen some stumbles, with reports of users temporarily losing money through LN. A vulnerability was likewise disclosed in September, with some reports noting that it was exploited "in the wild."

In Dec, Bitfinex introduced LN support to make instant purchases through Bitrefill.