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Bitcoin Lightening Network- Why do we need it?

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This is correct and Lightening Network's mission is to speed up Bitcoin transactions with very small fees so as to pay instantly without waiting


 

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9 hours ago, Thekingcallme said:

This is correct and Lightening Network's mission is to speed up Bitcoin transactions with very small fees so as to pay instantly without waiting

You are not wrong but lightning network fee might later increase too, the busier the network the more will be increase in transaction fee too but it could not be so increase to become so expensive too like bitcoin fee. Also, it can lead to centralization in which big companies that that have many channels will be the one gaining for running a node. And, it is still under development. 

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Mainly that's what the lightning network is for, micropayments. There has been cases where people tried running a LN node in large transactions, some were successful and some lost their funds. It's still very much in development and very sensitive.

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My Altcointalks username —° Raqeebzy

 

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The Lightning network (LN) has actually helped the Bitcoin blockchain and other blockchains like Litecoin that has adopted it due to the speed and the reduced transaction cost.

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12 hours ago, Ismoney said:

The Lightning network (LN) has actually helped the Bitcoin blockchain and other blockchains like Litecoin that has adopted it due to the speed and the reduced transaction cost.

@Ismoney how did lightning network helps bitcoin blockchain? 

Lightning network is not related to Blockchain, infact, it is later 2 which is offchain while blockchain is is onchain. The only connection between them is that you can close a channel and send the coin from offchain to blockchain. 

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The speed of the Bitcoin transaction is related to the blockchain network if it is crowded or not and to the withdrawal fees, for the Bitcoin transaction will be confirmed faster if you pay a higher fee, so when the blockchain network is crowded, the Bitcoin transaction will be delayed and therefore we need another network such as Lightening Network to complete the transaction Faster and lower fees

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On 6/9/2020 at 10:14 PM, Raqeebzy said:

Mainly that's what the lightning network is for, micropayments. There has been cases where people tried running a LN node in large transactions, some were successful and some lost their funds. It's still very much in development and very sensitive.

There are still so many developments going on in the case of Bitcoin Lightning Network. If it become more sustainable and dependable, I have no doubt it will be the best option for the merchant payments, quickest and extremely lower fee ☺

Edited by Whited35
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54 minutes ago, Whited35 said:

There are still so many developments going on in the case of Bitcoin Lightning Network. If it become more sustainable and dependable, I have no doubt it will be the best option for the merchant payments, quickest and extremely lower fee ☺

Lately, a lot prefer making payments through Lighting network because of the advantages; speed and lower fee. A lot do so without prior knowledge how it works, technology behind it and how safe it is to perform higher transactions; a lot regret it later because it so sensitive to the slightest of fault. I am aware of these, so I prefer on chain transaction for now but surely it won't be a problem when it is fully developed.

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My Altcointalks username —° Raqeebzy

 

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11 minutes ago, Raqeebzy said:

I am aware of these, so I prefer on chain transaction for now but surely it won't be a problem when it is fully developed.

@Raqeebzy Security has always been the major concern for Bitcoin Lightning network here is no doubt. Generally, Lightning Network Wallet user do not prefer it for the huge amounts of BTC transaction. Yes, on-chain is safest but nowadays I am attracted toward Lightning Network to use BTC as the payment method to purchase goods and services. 

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1 hour ago, Whited35 said:

@Raqeebzy Security has always been the major concern for Bitcoin Lightning network here is no doubt. Generally, Lightning Network Wallet user do not prefer it for the huge amounts of BTC transaction. Yes, on-chain is safest but nowadays I am attracted toward Lightning Network to use BTC as the payment method to purchase goods and services. 

Obviously. Greater reasons it should be used careful with small funds. I read an article on coindesk last two months or so (the link) where the security of it was subjected to tests by researchers and fortunately, it passed the first formal test but still, advisably not too safe yet until it passed a couple of others.

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My Altcointalks username —° Raqeebzy

 

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I was wondering about the technology of litecoin and its fast and cheap transactions.. after this topic i read more about the issue.. but i still have many questions, is this technology secured well in addition to its speed and cheap fees? if yes, why the developers of bitcoin don't depend on it till now? as i know the security part is under testing and there is nothing clear till now so let's wait and see what would happen when we be able to send bitcoins fastly with low fees in the future!

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One of the reason why the lighting network is being implemented is because it wanted bitcoin to realize its main purpose which is a medium of exchange. But because of slow confirmation speed and high transaction fees it is possible somehow to mainstream bitcoin and use it in our daily lives.Thus lighting network is the answer to mainstream bitcoin into all works of life wherein we can buy coffe in the streets and many more.

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We need bitcoin lightning network for faster transactions at a cheaper fee, but most bitcoin users are not yet support lightning network, maybe if bitcoin go mainstream, it will be more supported. 

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I have been using lightning network now, but I only used it to perform a transaction with my friend, no other people that I know are using it, but the fee is cheap and the transaction is fast. 

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for the Bitcoin transaction will be confirmed faster if you pay a higher fee, that has adopted it due to the speed and the reduced transaction cost

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We are all looking forward to these projects because they will provide solutions to many details that make the use of btc impossible in common commerce. But I am more than sure that BTC will continue to look for new updates. And it will come the adoption at all levels of the btc.

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The lightning network is taking years and has met many difficulties but when it is complete it will be a big game changer in transactions. It is already used a lot but needs to reduce bugs and more time. When it is over everything will be different as transactions will be very cheap and very fast.

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Transactions are slow with bitcoin, they take an hour to confirm and the fees sometimes are very high. Nobody will pay five or ten dollars for fees to buy something that can save this money and buy with the debit card from bank. It is becoming difficult to purchase with Bitcoin and only with a second layer network like lightning it will be able to use for this way.

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The scaling problem can be solved probably only with this way. It was decided not to increase the block size for fears of centralization of mining and concensus agreed. BCH was the result of the miners and part of the community that disagreed and they only made a mess since then and nothing else. LN is a good solution but needs to finish and be free of vulnerabilities first.

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The Lightning Network will help Bitcoin to be adopted for use of merchant adoption and microtransactions. In fact with the Lightning Network there won't be any need for many other altcoins that are trying to be used for this kind of transactions and it will even help in microtransactions with 1 or even less of satoshi that can be given as payments for clicks, tips or anything else. It will bring Bitcoin to the next level of adoption, mainstream commerce adoption.

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The Lightning network is needed for scaling. It was decided but the development seem to be very slow. The interest fades too sometimes and comes back only when other cryptocurrencies are rising in terms of adoption in the transactions. I think it is important for Bitcoin to put more into this and devs should be looking forward to remove all major vulnerabilities.

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Thanks for the explanation, I didn't know a low about the lightning but I've learned something now. I really think that $1 and $2 transactions are not microtransactions, maybe you think these are called like that but microtransactions are cents.

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On 12/1/2020 at 4:53 PM, cryptovlek said:

The Lightning Network will help Bitcoin to be adopted for use of merchant adoption and microtransactions.

Well, this is what should be, but since the creation of lightning network in 2016, there has only been a little adoption. Most people like to use the blockchain rather than using the layer 2. Let us see what will happen in the future, if lightning network will be more adopted. This will really help those that are making small bitcoin transactions because the fee is very low. 

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We need the lightning network if the Bitcoin community still thinks that Bitcoin can be used for payments. Otherwise it will only be the blockchain with all the scaling disadvantages it carries, such as low confirmation times and high fees. I think the LN will be a good solution as Bitcoin should be used again as it was before.

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Lighting network is most valuable second layer development for Bitcoin network. Though non-custodial lighting network setup is really hard and I haven't used that. But custodial lighting network is really easy and we just need a lighting network Wallet to get started. The transaction fee is like 1 satoshi for most of the transaction and transaction are completed within a second.


NOTHING I SAY IS FINANCIAL ADVICE. YOU SHOULD USE YOUR MIND ,FOR YOUR MONEY,

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If the Fed takes its first step in easing its monetary policy in September, it could support risky assets, including bitcoin. According to Cryptology experts, the chances of bitcoin reaching a new all-time high by the end of September are quite high, and what is happening now is a phase of accumulation.   Despite the current decline, many investors remain optimistic, citing the cyclical nature of the crypto market. They also do not forget about the US elections. For example, former Goldman Sachs CEO Raoul Pal predicted significant bitcoin and cryptocurrency market growth in Q4 2024. In an episode of The Wolf Of All Streets podcast, the financier noted that risky assets like bitcoin usually rally against the backdrop of US presidential elections. "The final quarter of an election year is a real 'banana zone' for all assets. It always is," Pal optimistically stated, noting that the "banana zone" for cryptocurrencies in autumn is much more pronounced than, for example, for the Nasdaq index.   Bitcoin was also supported by billionaire Michael Saylor. His company, MicroStrategy, is one of the largest bitcoin holders in the world, with 205,000 BTC on its balance sheet. Despite the negative trend, it increased its reserves by another 11,931 BTC (over $700 million) in the past month alone. Saylor is convinced of the first cryptocurrency's ability to grow to $10 million with support from China and other factors. He believes that in the future, governments, especially China, will fully embrace the first cryptocurrency and integrate it into the state infrastructure. The entrepreneur declared all pre-bitcoin economic instruments obsolete. "Before Satoshi Nakamoto, economics was a pseudoscience. All economists before Satoshi tried to develop economic laws with shells, glass beads, pieces of paper, and credit instruments," the businessman wrote, calling bitcoin a "perfect asset."   In previous reviews, we already wrote that the launch of exchange-traded spot ETFs on Ethereum could give a certain boost to the digital asset market. On 25 June, SEC (US Securities and Exchange Commission) Chairman Gary Gensler noted that the registration process for new ETFs is "going smoothly," and the approval date depends on how quickly applicants submit adjusted S-1 forms. Bloomberg analysts call 02 July the expected approval date for new products. Reuters, citing anonymous sources, reports that a consensus has been reached between fund managers and the SEC in negotiations, and only the "final touches" remain.   Co-founder of venture company Mechanism Capital Andrew Kang stated that after the approval of ETH-ETF, Ethereum's rate could correct by 30%, falling to $2,400. In his opinion, at this stage, the main altcoin attracts much less attention from institutional investors compared to bitcoin. Based on this, ETH-ETF will attract only 15% of funds compared to what BTC-ETF received at the start.   Kang noted that to increase Ethereum's attractiveness among investors, its ecosystem needs to be positioned as a decentralized financial settlement layer, a global computer, or a Web3 application store. At the same time, it will be difficult to sell new ideas for Ethereum's application to funds, as the asset is perceived by investors as an overvalued stock of a large technology company.   Significantly more positively views the future of Ethereum Matt Hougan, CIO of Bitwise, a company managing cryptocurrency funds. In his opinion, the appearance of a long-awaited exchange product is undoubtedly a positive factor, and the net inflow of investments into ETH-ETF over the first 18 months will amount to $15 billion. In his analysis, he relies on the experience of Canada and the EU, where in similar products the inflow ratio for Ethereum and Bitcoin is approximately 1 to 4 (i.e., 25%). In other words, if in the first quarter of work for spot Bitcoin-ETF the total inflow was $26.9 billion, for Ethereum it is expected to be at the level of $6.7 billion. In this case, in three months of work, the leading altcoin could rise to $4,400-5,000.   CEO of SkyBridge Capital Anthony Scaramucci believes that the price of Ethereum could rise even higher, reaching $10,000-12,000. Regarding bitcoin, the entrepreneur allows for its growth to $170,000-250,000. The main driver, in his opinion, will be the further institutional acceptance of cryptocurrency. Scaramucci called the approval of spot exchange ETFs an important regulatory barrier breakthrough for attracting new capital. Thanks to this, in his opinion, the share of digital gold in the portfolios of major players will soon be about 3%.   As of the evening of Friday, 28 June, BTC/USD is trading at $60,190, and ETH/USD is in the $3,390 zone. The total crypto market capitalization is $2.24 trillion ($2.34 trillion a week ago). The bitcoin Fear & Greed Index (Crypto Fear & Greed Index) has dropped from 63 to 47 points over the past 7 days, moving from the Greed zone to the Neutral zone.   In conclusion, here is another observation from Matt Hougan. The CIO of Bitwise presented three reasons why long-term investments in both bitcoin and Ethereum are more advantageous compared to investing only in bitcoin. These are: 1. portfolio diversification 2. the opportunity to earn on very different ecosystems and 3. economic benefit.   Considering the difference in the capitalization levels of bitcoin and Ethereum, Hougan believes that 75% of the capital should be invested in BTC and 25% in ETH. According to calculations, over the period from May 2020 to May 2024, the yield of such an investment portfolio is 3% per annum higher than one that only contains bitcoin. However, Hougan acknowledges that in the shorter term, a portfolio including 100% BTC outperforms a diversified one. Moreover, investing only in bitcoin carries fewer risks due to its higher market capitalization and features such as limited coin issuance and a phased reduction in the inflation rate to zero.   NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
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