THELOGICALINDIAN - Its all about the Lightning Network in Bitcoin acreage This decentralized micropayments arrangement apart Bitcoins scalability botheration and unleashed the achievability of hyperbitcoinization into the apple Not alone that back this Layer 2 band-aid was created with the Bitcoin appearance in apperception it offers agnate aegis guarantees It all runs over the Bitcoin blockchain alike admitting it alone touches it for final settlement
How does it do all that? That’s what we’re actuality to explore.
Related Reading | Visit El Salvador’s Bitcoin Beach Through VICE’s Mini-Documentary
We’ve said it afore and we’ll say it again. Bitcoin is acknowledged breakable in El Salvador because and alone because of the Lightning Network. The Bitcoin Beach AKA El Zonte agreement is the real-life case abstraction that accepted that the agreement works and can sustain a micro-economy that uses satoshis AKA sats as the standard. Since we’re talking about micro-payments, the aboriginal assemblage of the Bitcoin ecosystem is now the protagonist. How air-conditioned is that?
How Does The Lightning Network Work?
Look, the accuracy is, you don’t charge to apperceive all this to booty advantage of The Lightning Network. There are already a few careful wallets that adumbrate the complexities and action a simple plug-and-play product. There’s alike a new beachcomber of non-custodial wallets that do article similar. However, that’s not on par with the Bitcoin ethos. Alike if you’re activity to use those products, you should apperceive how The Lightning Network works beneath the hood.
The simple account provided by the video is a huge help. Describing how the arrangement works application alone words is a alpine order. We apperceive that “a acquittal approach is a two-person multi-signature adress,” and the Lightning Network Wiki informs us that:
That aftermost allotment is actual important, as abounding bodies assume to anticipate that in The Lightning Network bodies transact with a affectionate of IOU. Quoting the video, “All these transfers absorb absolute Bitcoin, not a Lightning coin. The Lightning Network provides a way to accelerate approved Bitcoin application able scripts and protocols.”
Does A Channel Die After It’s Used?
Since the transaction to set up a approach costs BTC, the abstraction is to accumulate those channels accessible for as continued as accessible During that period, you can accomplish an absolute cardinal of transactions. Both parties can “continue to barter Bitcoin by signing new affairs and exchanging abolishment keys,” and they’ll alone be acclimatized on-chain back they adjudge that the affair is over. Quoting the Lightning Network’s whitepaper:
The “clever scripts and protocols” we mentioned assure anniversary affair from the other, and accommodate a aisle to accelerate BTC to any added being affiliated to the network. Even admitting the video already explained that process, we’ll analyze the abstraction in a approaching article.
Key Takeaways From “How Bitcoin’s Lightning Network Works Under the Hood”
The Lighting Network provides:
Identified challenges:
Related Reading | 4 Reasons Why The Bitcoin Lightning Network Will Continue To Grow
However, the Lightning Arrangement is a assignment in progress. And, “As added bodies accompany the arrangement and it becomes added commutual it will be easier to accomplish payments.”
As we agreement and become acclimatized to application it, It will additionally be easier to explain how it works.
