Rootstock is Fusing Lightning With On-Chain Scaling – On a Sidechain

 The project comes from Rootstock, the startup known for proposing a sidechain aimed to one day port over ethereum’s smart contract functionality to bitcoin without impacting the main blockchain.Technically, the new proposal combines in one project a number of technologies in development around bitcoin: sidechains, the Lightning Network and other solutions that achieve on-chain scaling.While sidechain functionality has not been added to bitcoin yet, bitcoin security consultant Sergio Demian Lerner has still been working at building layers on top of Rootstock, including a compatible version of the Lightning Network, known as 'Lumino'.Through this process, Lerner came up with something called Lumino Transaction Compression Protocol (LTCP), outlined in his white paper.LTCP boosts transaction capacity by way of 'on-chain scaling', a phrase that seems to mean different things to different people. In this instance, LTCP uses clever compression engineering to allow for more transactions to be settled on the blockchain.Lerner told CoinDesk: 

http://www.coindesk.com/lumino-bitcoin-lightning-network-scaling-sidechain/