Still in the spirit of awaiting final S4 Hackathon results
Few hours to go, Let learn about LN.
What Is the Lightning Network?
The Lightning Network is a second layer for the Bitcoin blockchain, which serves to speed up transaction times and decreases network congestion by introducing off-chain transactions.
Understanding the Lightning Network?
Joseph Poon and Thaddeus Dryja first proposed the Lightning Network in 2016, and it has been under development since then. The problems the Lightning Network was devised to solve were Bitcoin’s slow transaction time and throughput, or processing time, as well as costs.1
What issues Does the Lightning Network Try To Address?
Bitcoin wasn’t designed to be scalable.
Some issues the Lightning Network attempts to correct are:
- Sluggishness in confirming transactions
- High energy costs
The Lightning Network uses channels between participants, so that multiple transactions can be handled without waiting for the slower main net to confirm single exchanges.
Concerns About the Lightning Network?
Lightning Network nodes may become similar hubs or centralized nodes in the network by having more open connections with others. Other concerns are fraud, fees, hacks, and price volatility.
Lately, I learnt from @Prince-Onscolo about
using the LN you pay 0 transaction fee
Where we can use lightning network to send and receive BTC without delay, even with no internet connection.
So guys, what do you all think of the
Original information derived from
INVESTOPEDIA By JAKE FRANKENFIELD
Updated April 18, 2023