Quote from: 7788bitcoin on February 13, 2016, 04:28:52 PM

Interesting. So, it must be between two 21 Raspberry Pi computers... I wonder if it is similar to Sidechain or other similar ideas...

I think Lightning Network would be the closest comparison.
I found some interesting posts by a redditor.

Quote

This is my quick take:

LN is about developing a routing system that can make these type payment channels interoperable.

These 21 channels just let you open a channel and transact with one person (apparently unidirectionally). That's been in Bitcoin for a long time, but no one ever develops uses for it.

The LN will allow a person to open a channel like this and then send a payment to someone they haven't opened a channel with. In practice, the node the payor opens a channel with will have several channels open and payments will be routed between numerous payment channels until the destination is reached. This could take 10 hops, but it will be super fast because no confirmations.

By 21 adding this, they are simply incrementally building up to the eventual LN. It's a good step. Also, it's a good way to show the need for the LN; once people use this and like it, they will critique it for being limited to payments with only one person.

Somebody correct me if I'm wrong.