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What is the Lightning Network?

Unbeknownst to much of crypto fans, one of the most intriguing strengths of the recently executed Lightning Network is one of the least reviewed: the ability to build decentralized-like applications above the caliber Lightning Network. Scholars, engineers, and the bitcoin group of people have been trying to think of an approach to allow BTC and other cryptos to coerce other transactions.

Their serious attempts so far have focused on something many call the Lightning Network. Could this at any time solve cryptocurrency scaling issues?

About the Lightning Network

If we talk about the Lightning Network, it is built as a layer 2 on top of the BTC network, which means it is built completely different from the BTC network but connects with it. It consists of businesses or channels that allow individuals or organizations to transfer money between each other without expecting to use blockchain to verify the transaction.

It is similar to the settlement system used by companies such as Mastercard and Visa. Every time you pay for something at this time, it takes a while to split it. All things being equal, there is a quick verification of the buyer’s assets and solicitation of the seller, giving the green light for a transaction to occur. The real settlement of assets happens later – occasionally, days or weeks.

The Lightning Network is controlled by a network of nodes that interact with payment, and transactions are typically made using QR codes rather than complex public keys. In principle, this could allow thousands or even thousands of transactions to happen quickly, making small transactions efficient.

How does this work?

The Lightning Network is faster and cheaper because it bypasses the main Bitcoin blockchain. He has an unstructured organization set up around him. Channels are the specially designated distributed associations through which payments are made. A number of payments can be sent in a channel. There is an unstructured network that is established around her. nodes are controlled by regular individuals – or partnerships – running a program on their work areas, PCs or Raspberry Pis.

To start using the Lightning Network, any measurement of Bitcoin must be secured in a payment channel. After that, it can easily be spent on the Lightning Network, as long as the channel is closed. The person who needs to make the payment basically needs to check this receipt with their Lightning wallet and confirm all payments.

When the payment is initiated, the first confirmation is sent over the network to the person from whom the solicitation was initially made. This process is known as Shared Network, which means payment management does not depend on any favors. This normally happens in just a few moments – hence the name “Lightning”.

Since payments are not made on the Bitcoin blockchain, they are not subject to long delays and high fees. This implies that smaller payments, or micropayments, can be made for a single satoshi. Whenever someone is done using the network, they can close that channel, exit, and then use their BTC on the standard Bitcoin network.

Bitcoin Lightning Wallet on Android

If you don’t need the full Node experience, you can download the Bitcoin Lightning Wallet app on your Android phone, which includes everything behind the scenes. Hereby, you can open a lightning channel if you wish and initiate transactions with various customers. It’s too “non-custodial”, which means you take care of your keys – securing your BTC at your fingertips.

Featured Image by Mariia Shalabaieva on Unsplash

DISCLAIMER: This article is sponsored and does not replace professional advice or assistance. Any action you take on the information presented in this article is strictly at your own risk.