Segregated Witness & Lightning Network: Implications on the Future of Payment | SGInnovate
June 11-12
2018

Location

Perl @ BASH, Level 3
79 Ayer Rajah Crescent
Singapore 139955

Segregated Witness & Lightning Network: Implications on the Future of Payment

Presented by Singapore University of Social Sciences. Partnered With SGInnovate

In this 2-day course we will take a deep dive into the recent developments in the Bitcoin and Litecoin blockchains, namely the implementations of Segregated Witness (SegWit) and Lightning Network, including the community dispute on the activation of SegWit on Litecoin. 

The course will provide a brief introduction on the structure of blockchains, and cover the recent debate on the scalability issues of the Bitcoin blockchain, which eventually resulted in a hard-fork on the Bitcoin blockchain. The course will include a thorough review of the design principles of Segregated Witness, how it solves the transaction malleability issue and eventually became the enabling technology for Lightning Network. 

The course will also engage in a comprehensive overview of Lightning Network. Participants will be able to see how a fast payment channel is established, how multiple payment channels are connected, and how transactions are routed across the whole Lightning Network.

Segregated Witness (SegWit) and Lightning Network are the key techniques that enable fast payment channel to be established between two (or more) users on the blockchain. This year, both Bitcoin and Litecoin have officially launched the Lightning Network on the mainnet, and users are able to perform near-instant transactions with minimal transaction fees, creating a vision of using cryptocurrency for micropayment. In this workshop, Dr. Wang Xinxi of the Litecoin Foundation will describe the blockchain scalability issues and the need for SegWit and Lightning Network. The workshop will cover principles of Lightning Network, how it was deployed on Litecoin, alongside with demo(s) by the instructor. 

This workshop is suitable for anyone who aims to gain an in-depth understanding on performing payments on blockchain and its implications on businesses, and/or to develop own blockchain applications deploying Lightning Network.

Note: Participants are strongly encouraged to have a basic understanding of the Python programming language. 

For Python beginners with no programming background, a good tutorial can be found at: https://python.swaroopch.com/

For Python beginners with programming background, an introduction can be found at: http://www.techbeamers.com/python-tutorial-step-by-step. You may also find https://wiki.python.org/moin/ a useful reference.

Objective:

A. Knowledge and Understanding (Theory Component) 

At the end of this course, participants should be able to: 

  • Describe the structure and mechanism of Blockchains 
  • Discuss the scalability issues on the Bitcoin blockchain and the need for SegWit 
  • Explain the principles of Lighting Network, and its strength and weakness 
  • Illustrate how SegWit and Lightning Network were activated on Litecoin 


B. Key Skills (Practical Component) 

At the end of this course, participants should be able to: 

  • Create, send and receive Bitcoin/Litecoin transactions 
  • Create an altcoin based on Bitcoin’s code 
  • Use the Lightning Network 

Agenda:

Day 1
09:00 - 09:15 2-Day Course Overview

09:15 - 10:45 History of cryptocurrencies:

  • Pre-history of cryptocurrencies
  • Bitcoin Creation
  • Litecoin Creation

10:45 - 12:45 Deep dive into Bitcoin/Litecoin Blockchain structure

  • Structure of a transaction
  • Bitcoin/Litecoin addresses and base58 encoding
  • Multisig transactions and smart contracts
  • Merkle Tree
  • Demo of blockchain explorer/transaction creation, sending and receiving.

12:45 - 13:45 Lunch

13:45 - 15:15 Consensus and mining

  • What is consensus
  • Proof of work
  • Bitcoin and Litecoin’s mining mechanisms
  • Comparison and discussion on proof of work and proof of stake

15:15 - 16:30 Bitcoin/Litecoin scalability and transaction malleability issues

  • Transaction malleability / The bankruptcy of Mt.Gox.
  • Block-size debate
  • SegWit
  • Soft-fork and hard-fork
  • How the Litecoin team activated SegWit on Litecoin
  • Bitcoin Cash

16:30 - 17:00 Assessment


Day 2
09:00 – 09:15 Overview of the Day

09:15 – 10:45 Lightning Network – Bidirectional Payment Channels
What is Lightning Network
The application of Lightning Network & the implications
Lightning Network transaction in one channel

10:45 – 11:00 Break

11:00 – 13:00 Lightning Network – Hash Time-Locked Contracts
Lightning Network transaction between multiple channels

13:00 – 14:00 Lunch

14:00 – 15:30 Lightning Network – Completing a transaction and Routing

15:30 – 15:45 Break

15:45 – 17:00 Lightning Network – demo

17:00 – 17:30 Assessment

 

Trainer’s Profile:

Dr. Wang Xinxi 
Director and Founding Member, Litecoin Foundation 

Dr. Wang Xinxi is the founder and CEO of Coinut.com and a co-founder of the Litecoin Foundation. He obtained his Ph.D. degree in computer science from the National University of Singapore in 2015 with a focus on machine learning/recommender systems. Before that, he obtained his bachelor’s degree from Harbin Institute of Technology in China. Xinxi had gained years of experience in automated trading in the forex markets before diving into the fascinating cryptocurrency world, combining his background in computer science and financial trading. In 2014, he founded Coinut.com, one of the most advanced cryptocurrency exchanges in the world. 
In 2016, Xinxi joined the Litecoin Core development team and quickly realized that a shortage of resources was limiting Litecoin’s progress. With that in mind, he co-founded the Litecoin Foundation in Singapore and has helped raise more than $1M from the Litecoin community to support Litecoin's development. Xinxi lives in Singapore and enjoys traveling around the world.

Topics: Blockchain

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