Bitcoin Core 0.12.1 was released early this morning and the update includes several changes that have huge implications for Bitcoin scalability . The release deploys the first soft fork on the Bitcoin network to use the methodology outlined in BIP 9 (Version Bits), which allows multiple soft forks to take place at the same time.
The three soft forks ( BIP 68 , BIP 112 and BIP 113 ) included in Bitcoin Core 0.12.1 have huge implications for the Lightning Network , which many believe to be Bitcoin’s best chance for long-term scalability. Although the code for the soft forks has been deployed, support for each hard fork cannot be signaled by miners until May 1st.
A Huge Step Forward for the Lightning Network
The three BIPs implemented in this latest release of Bitcoin Core combine to enable relative locktime . This means that payment channels can now be closed without a predetermined date, which would be set when the channel is initially opened. This provides more flexibility to layer-2 initiatives , such as the Lightning Network, because users will be able to exit channels in a more timely manner.
Bitcoin Magazine reached out to Bitcoin Core contributor and Ciphrex CEO Eric Lombrozo for further details on how these new changes will affect the flexibility between channels on the Lightning Network, and he said: “It depends on the locktime duration — it’s a tradeoff. Too short a time means not enough time to enforce a revocation (and steal back the funds). Too long a time and you risk waiting a while to force the channel to close if the counterparty is unresponsive.” Lombrozo also added, “I’m not sure we’ve settled on an optimum value.”
According to Lombrozo, the reliability of outsourced revocation, the number of hops between channels, and other variables […]
