The following content is quoted from chainnode:
Interpreting The LBTC Whitepaper – Do You Really Understand LBTC?
In recent years, it is undoubtedly the period of blockchain technology revolution. The term blockchain is a global hit. Blockchain has the advantages of security, openness, decentralization and non-tampering. All this gives a sense of the coming cryptocurrency era. Since the birth of bitcoin as the first public chain, the world of blockchain has opened people’s imagination to the concept of decentralization and point-to-point electronic cash. Today, with the development of public chain iteration, functional, series is also more and more strong. The performance and design of bitcoin has been unable to support the needs of The Times. In this case, the public chain innovation only to achieve sustainable development and real implementation. LBTC, adhering to the concept of applying blockchain to real life with high performance, has released a new version of the white paper.
In several ways, the release of the LBTC whitepaper marks the beginning of a rewrite of the traditional blockchain.
UXTO is an unspent transaction output, which is a core concept of LBTC transaction generation and validation. All legitimate LBTC transactions can be traced back to the output of one or more forward transactions. The source of these chains is the mining reward, and the end is the current unspent transaction output. The UXTO model in the LBTC white paper has many characteristics different from the traditional model, which are more reliable, more secure and more perfect in terms of privacy.
LBTC consensus mechanism – DPOS
The consensus mechanism adopted by LBTC is DPOS, short for certificate of entitlement.Compared with the POW workload proof mechanism, POW consumes excessive energy and becomes more “centralized” as the size of the mine pool gets larger and larger. The POW workload proof mechanism moving toward “centralization” is clearly not sustainable. Compared with the POW workload certification mechanism, the POS equity certification mechanism has improved on the issue of energy, but it fails to solve the pain point of the mechanism in terms of centralization. The LBTC white paper refers to DPOS as the mechanism for LBTC to participate in the consensus.As a new efficient consensus mechanism, DPOS has passed the test of several years. Super efficient, but also more decentralized.Safe and efficient. Use proxy voting to get everyone involved in the consensus of the nodes.This also conforms to the decentralized nature of blockchain, which is an important symbol of LBTC community process. On the other hand, the parallel of UXTO and the support of DPOS enable the performance of LBTC to be improved more.
DEX, a decentralized exchange, and asset tokens
In the LBTC whitepaper, it is mentioned why LBTC hopes to support the comprehensive asset tokens in the future by building a decentralized trading platform and introducing Oracle on the chain.
Since the birth of centralized exchange, problems have emerged one after another.
Safe, transparent and open. And so on are the problems of centralized exchanges. The exchange of the future will inevitably present a decentralized model. The LBTC white paper describes the future of decentralized exchanges, in which users can take full control of their assets. Assets will not be frozen, misappropriated, etc. Each transaction directly on the chain, traceable, can not be tampered with. Through decentralized exchanges, we can truly open and transparent the trading and chain of assets. This is the core advantage of decentralization. On the LBTC network, users can create and act as decentralized exchanges themselves. Tokens of comprehensive assets and the digitization of all asset rights and interests in the age of information are the development trend of the digital era. From the development of physical currency to electronic currency, we can predict the future of full asset token. Under the network of LBTC, the real assets, equity and identity information, whether physical or non-physical, will be token.
On this basis, we can ensure the openness and transparency of data information, but also to do their own private information encryption. Anyone can create contracts and link records on the LBTC network, and easily realize the customization of digital assets.
In the direction of decentralization, DEX technology development team considered two solutions:
Solution 1: expand to distributed query.
Solution 2: peel off the query server or set up the query server group.
“Cross-linking” is a necessary step for us to make full use of the blockchain technology. The LBTC whitepaper says that in the future, Inter-Blockchain technology will be supported to achieve value exchange between chains. It will be a chain of assets, equity integration. As a low-level public chain platform, LBTC supporting cross-chain is particularly important for the LBTC ecology, which is why the LBTC white paper takes Inter-Blockchain as a direction for the development of LBTC network. Through Inter-Blockchain to achieve the fusion between different main chains and exchanges. Extend the “chain” to the “chain network” structure. Achieve increasingly strong compatibility, functionality.
The release of the lightning bitcoin whitepaper. First, the development concept and value of LBTC, as well as the value system formed by self-governance and self-development related to the development of LBTC community are expounded from the bifurcation methodology. Secondly, the model of LBTC’s technical architecture is introduced in detail, the LBTC architecture is displayed, and the UTXO model of the most secure accounting method adopted by LBTC and the efficient and secure DPOS+PBFT consensus algorithm are elaborated. Third, through the theory emphatically constructs the decentralized exchange and the comprehensive token development route, the economic model, proposed two decentralized exchange operation plans. In addition, the white paper also focuses on the combination of cross-chain technology to reflect the improvement and innovation in LBTC network on the basis of cross-chain technology. Finally, the release of the LBTC white paper marks that the LBTC has entered a new development stage of 2.0. Looking forward to the future realization of the technical concept and new architecture to maximize the implementation and application of blockchain technology, improve the efficiency of value transfer between points.