What is The Lighting Network?


In 2016, Lightning Network was proposed by Thaddeus Dryja and Joseph Poon. Lightning Network is a special Bitcoin technology that uses small pay-out streaks to weigh the capacity of its blockchain to perform transactions. What the lighting network does is simple. It reduces Bitcoin activity on the main blockchain network thereby reducing charges on transactions. Also, the Lighting Network facility enhances the speed of transactions. 

Every day, as the world of crypto evolves, Bitcoin is gaining more popularity and many players are beginning to take interest in the field. Because of the decentralized nature of Bitcoin, it is easy for anyone to transact in Bitcoin via a blockchain network. However, the security system of a blockchain network poses a challenge. This is because each transaction has to be verified by all the users on a blockchain. Eventually, when more users start to perform transactions on the blockchain, the time taken for consensual validation from all network nodes will be more. This is where the lightning network comes in. Lightning network solves this by creating a sublayer in the Bitcoin blockchain network which has sublets for making payments and transfers.

Advantages of Lightning Network

  1. Transactions conducted on the lightning network are instant. This has the effect of encouraging more people to use Bitcoin as a medium of exchange.
  2. The lighting network can be used to carry out transactions of multiple cryptocurrency types outside the blockchain network. An example is atomic swaps.

These are the major advantages of adopting the use of lightning networks.

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