You may have heard the term “Lightning Network” before, in reference to Bitcoin and other cryptocurrencies. For the uninitiated, the term might seem abstract with little actual meaning on the surface. However, Lightning Network is an Important element of cryptocurrencies — because it’s a second layer which aims to solve Bitcoin’s scalability problem.
If you are new to Lightning Network, read this beginner guide on the basics to get yourself started.
The Lightning Network is a second layer which aims to resolve Bitcoin’s scalability problem. Today we will learn what the Lightning Network is, how it works, and how it is expected to be an integral part of Bitcoin’s future.
Here I’ll be talking about all there is to know about the Lighting Network. So, let’s see what this beginners guide will cover on the Lightning Network.
What is Exactly Lightning Network?
How does the Lightning Network work?
Overview of Lightning Network Architecture
Who developed the Bitcoin Lightning Network?
Advantages & Disadvantages of Lightning Network
Interesting facts about Lightning Network
Where is Lightning Network used?
Current Stage of Market Adoption
Future of Lightning Network
What is Exactly Lightning Network?
While Bitcoin provides a solution to many of the problems given by our current economic system, it still has some difficulty. One of its biggest limitations concerns the speed and price of transactions, exclusively during busy times. These limitations prevent it from becoming a true medium of exchange for day to day microtransactions, like cash or credit card.
The lightning network was developed to solve just that. Created as a second layer over the bitcoin network, it allows the user to transfer Bitcoin between one another instantly and without any fees. This is made feasible by creating payment channels between two users. Payments can also be made between users that are connected indirectly, through network channels.
The concept of the Lightning network is that transacting and settling would be done off-blockchain, so the transaction fees are very low and it is a decentralized network using smart contract functionality in the blockchain to enable instant payments across a network of participants.
