The Lightning Network is a second layer added to the Bitcoin Blockchain, enabling a seamless off-chain network.
Payments made outside the chain of blocks are all those operations carried out as an exchange in the different currencies between users and not directly with the Bitcoin platform. Click to learn more about Bitcoin Revolution
There are thousands of transactions carried out in seconds, which is why the appearance of the lightning network will help the platform not become congested by offering meager fees for the said exchange.
Lightning networks could allow Bitcoin transactions to happen instantly, which is why it has been hailed as the scaling solution for Bitcoin.
To be more precise, “Lightning Network” is nothing more than a superficial layer of the Bitcoin network that approves the execution of payments quickly.
It allows micropayments in your environment by not having to record operations directly with the Bitcoin database but with a separate vault or cash flow account attached to the lightning network, linked to the leading system network.
The exciting thing about this proposal is the possibility of executing transactions under a particular pattern inside and outside the network without limitations and in addition to this without losing the trust that blockchain generates since when the channel closes, the various Bitcoin blocks are added to the chain, that have been created.
The Lightning Network has become more ready for large-scale use in the future. In the meantime, they are working hard on the infrastructure for the final part. At the same time, you also need to build user-friendly apps so everyone can easily use the Lightning Network.
To whom is it directed?
Accordingly, transactions are only between you and you; there is no need to broadcast them to the entire network; these operations are processed almost instantly. And since no miner is looking for incentives, transaction fees, in some cases, become non-existent.
The only ” delayed transfers” are the opening and closing of the multiple signature account, in which the funds to be used between the people or companies involved are deposited.
Very pending because this account can be closed by any of the parties to claim the funds corresponding to each firm, which allows liquidity that competes with conventional instant payments, approving the malleability between charges as the operation is not necessary.
Directly with the recipient of the payment, since a Bitcoin holder could outsource costs by transferring them to another person’s multiple signature account instantly, this, in turn to the final recipient of the Satoshis, speeding up the payment time between users.
What are the benefits of using this network?
Bitcoin users will be granted low off-chain transaction fees, offering confidence to drive new Bitcoin use cases such as instant micropayments.
The Bitcoin and Lightning networks will change the financial world now and in the future.
The possibilities of investing in assets through this platform will allow showing the operations that take place in the stock market, making risk management more efficient and thus obtaining greater transparency and confidence in the processes that are carried out there.
Lightning Network Risks
As with any new platform, fears about the risks of implementing the lightning network will always arise. The risks are similar to those we face using Bitcoin and blockchain, including fake trades, malware, key loss, wallet vulnerability, and phishing practices.
The new technologies bring a lot of information, of which there is a low percentage of society, even Bitcoin users who are not informed, so therein lies the problem of being victims of scams.
Misinformation is a very personal criterion. However, in these times of technology, it is essential to know and learn about new technologies and platforms that will give a 360º turn to our financial and economical operations.
The Lightning Network brings with it a large number of challenges that, although they seem impossible, aims to improve the execution times of operations, where they will be carried out in an easy, fast, and efficient way.