IOTA Ecosystem Developer creates a Lightning Network on the Tangle via Smart Contracts : CryptoCurrency

This is a proof of concept which isnt built on the actual QUBIC platform which is using the IOTA token. QubicLite is just meant to be a testbed in the interim as the real Qubic is still not operational. QUBIC itself will be running its Quorum based distributed computing through IOTA payment gateways. The reason being its already part of the fee less native protocol which has all the benefits the base protocol provides.

Just like he mentions” The actual beauty of this whole concept lies in the fact, that oracles (2nd layer) would be rewarded through the MicroHash smart contract (4th layer), which is built on top of TOQEN (3rd layer) which is a qubic processed by other oracles (again 2nd layer). ” This was necessary because the base protocol without QUBIC in its current form cant create smart contracts so he had to build another separate layer.

The full QUBIC system is using IOTA tokens itself, skipping the need for a 3rd layer token. The idea being IOTA token/Platform is 1st Layer, Qubic is 2nd Layer, 3rd Layer (everything else)

In the meantime without QUBIC actually running on the live network you cant do this, so it requires you to build an interim coin system which is fine since this lets developers play around and test out POC that might work that can be further migrated on to the more powerful QUBIC system when its ready.

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