What is a lightning network?

[Crypto123 0]

12 hours ago, bujangtulen said:

For the general public, the blockchain standard and cryptocurrency remain a thriller. It is difficult for people to understand that important information can be logged on a permanent file that does not take a seat on the relevant server gadget. Lightning, for an easy explanation, is to have a level of data processing to simplify and reduce congestion on the main blockchain, allowing bills to pass through and then resolved. The growth of the blockchain is dense, keeping costs affordable and allowing transfers to transport ahead.

Very good my friend, it seems that you have a deep knowledge of these technical tigers that are difficult for the general public to understand, yes this is quite taking a long time to register Bitcoin transactions in the blockchain due to the increase in the block size so the lightning network was invented to reduce this time and speed up the transactions.

[scorpiali 5626]

5 hours ago, ashblinx said:

Mostly we penury to learn, and nearby are a batch of clothes we don't be acquainted with and new possessions in the humanity of Crypto that is constantly evolving and new equipment go on daily. as a result you be supposed to check on the news permanently.
 

The learning is the most important in any new projects every one should have some knowledge about what he want to enter in specially in Crypto currency because people don't know exactly what he means

[AmjadBydn 0]

The Lightning network is a layer two protocol for BTC , Specifically designed for cheap , fast and private payments , I really like the existence of electricity networks

[Crypto123 0]

2 hours ago, Afnan016 said:

The Lightning Network is a "Layer 2" payment protocol that operates on top of a blockchain-based cryptocurrency (like Bitcoin). It enables fast transactions among participating nodes and has been touted as a solution to the Bitcoin scalability problem.^[1][2] It features a peer-to-peer system for making micropayments of cryptocurrency through a network of bidirectional payment channels without delegating custody of funds.^[3] Lightning Network implementation also simplifies atomic swaps. 

 

[rianpedia 816]

I do not understand this and still try to listen to it now, I think it is indeed the internet network that I usually study at school

[Ahillya 62]

A lightning network Is something that can have a fast transaction and will gonna have very high speed & velocity as that of a light year . Hence u gonna cannot compare the speed of light to any of the speed of an aeroplane.

[Laode Muhamad Fajar Indra Wirawan 23]

What is a lightning network?

the most potential solution for cryptocurrency scaling which is currently in the development stage, the lightning network effectively creates a layer above Bitcoin, enabling fast and inexpensive transactions that can be completed by the Bitcoin blockchain.

this idea is based on a network that can be on the Bitcoin blockchain, finally settling there. The network consists of channels created by users who can send payments in a safe and trust less way (trust less means you don't need to trust or even know the other party).

[aaish32 0]

On 11/21/2019 at 9:44 AM, Crypto123 said:

The Lightning Network (LN) as a concept was created by Joseph Poon and Thaddeus Dryja in 2015. The main idea behind the project is to design a payment protocol that can be used as an off-chain solution for the scalability problem faced by the Bitcoin blockchain, but the concept may be applied to other Cryptocurrencies as well.

The introduction of the Lightning Network was triggered by the limitations that not only Bitcoin but by many other cryptocurrencies are facing. Currently, the Bitcoin blockchain is only able to process from 2 to 7 transactions per second (TPS). As the cryptocurrency ecosystem grows and more people join the network, the number of transactions being broadcasted to the blockchain also increases. As the network gets more and more congested, the overall performance is compromised, which greatly reduces the practical usability of Bitcoin as global digital currency. In such a context, the LN was created as an attempt to alleviate the network congestion of the Bitcoin blockchain.

How does it work?
The Lightning Network consists of an off-chain transfer network that is being built on top of the Bitcoin blockchain. The system works on a peer-to-peer (P2P) level and its usability relies on the creation of the so-called bidirectional payment channels, through which users can make seamless cryptocurrency transactions.

After two parties decide to open a payment channel, they are able to transmit funds back and forth across their wallets. Although the process of setting up a new payment channel involves an on-chain transaction, all transactions that take place within the channel are off-chain and do not require a global consensus. Therefore, these transactions can be quickly executed through a smart contract, incurring in much lower fees and a much higher TPS rate.

In order to open a payment channel, the two parties involved need to set up a multi-signature wallet and add some funds to it. Funds that are stored on multi-sig wallets can only be accessed if the private keys of both parties are provided (two or more, depending on the case). This means that one party cannot open the wallet without the consent of the other.

As an example, let’s imagine that Alice wants to use the Lightning Network to trade Bitcoins with Bob. First, they set up a payment channel, using a multi-signature wallet. While the payment channel acts like a smart contract, the multi-sig wallet acts like a vault, where the funds to be traded are deposited. During the lifetime of the payment channel, Alice and Bob can perform as many off-chain transactions as they want.

Right after each transaction, both Alice and Bob sign and update their own copy of the balance sheet, which records the amount of coins each one has. When they are done with their transactions, they can close the payment channel and broadcast the final balance sheet to the Bitcoin blockchain. The LN smart contract will make sure they receive their Bitcoins, according to the last version of the balance sheet.

Summing up, the parties involved only need to interact twice with the Bitcoin blockchain. One time to open the payment channel and another one to close it, which means that all other transactions that take place within the channel are not directly interacting with the main chain.

Network Routing
Even if two parties do not have a direct payment channel, they are still able to send and receive Bitcoins through interconnected payment channels. That means that Alice is able to send payments to Charlie without having to create a direct channel with him, as long as there is a network route between them that contains enough balance.

So, if Alice has an open payment channel with Bob and Bob has a channel with Charlie, she can send the payment through Bob. The payment routing may involve many Lightning Network nodes, but the smart contract will automatically search for the shortest available path.

Advantages of Lightning Network
The LN project is working towards an off-chain solution for the scalability problem. If successful, it may reduce the traffic on the Bitcoin blockchain.
Through the use of bidirectional payment channels, the Lightning Network allows for nearly instant transactions.
The LN may be suitable for micropayments, as it allows the transfer of small values. Moreover, automatized micropayments may be implemented on the Machine-to-Machine economy, where transactions are made between electronic devices without the need for human interference.
Limitations of Lightning Network
Unlike on-chain transactions, LN payments cannot be made if the receiver is offline.
Participants of the network may need to monitor payment channels regularly in order to keep their funds safe (such risk could be overcomed by outsourced monitoring services).
The LN is not suitable yet for large payments. As the network counts with many multi-signature wallets (which are basically shared wallets) chances are high that these will not have sufficient balance to act as intermediaries of large payments.
Opening and closing a payment channel involves an on-chain transaction, which usually requires manual work and higher transaction fees.
When Is Lightning Network Coming?
On March 15th of 2018, the Lightning Labs announced the 4th major release of the Lightning Network Daemon (lnd), which gave rise to the first Lightning mainnet beta release. The lnd is a complete implementation of a Lightning Network node and is currently being experimented on the Bitcoin Test Network. Along with lnd, there are other implementations being developed, such as c-lightning and eclair. 

Note, however, that there is no official release date for Lightning Network as each protocol implementation has a different approach, which is based on regular updates and continuous development.

Since the lnd beta release, there was a huge increase in the number of LN nodes and payment channels. As of January 2019, Grafana dashboard reports more than 24,300 payment channels.

The collective work of nodes and payment channels is what makes the Lightning Network an interesting solution for the scalability problem. The beta version has been going through a lot of experimentation and its efficiency is yet to be proved. Nevertheless, the Lightning Network does have a huge potential to improve the Bitcoin and the cryptocurrency ecosystem.

 

Source: https://www.binance.vision/blockchain/what-is-lightning-network

Very nice article. I learned something new about lightning network.Thanks for this artical

[rianpedia 816]

On 12/9/2019 at 9:45 PM, Akbor said:

Mainly as a crypto trader I knew about lightning network but it was not clear to me. now it is very clear and this is excellent to me. thank you for your information.

the concise and clear response is the same as my opinion on the topic of the other colleagues, good friend

[Suhannewaz 245]

Lightning Network is a second-layer bitcoin application that uses micropayment networks to increase the capacity for blockchain transactions. The lightning network is intended to decongest bitcoin and reduce related transaction fees by withdrawing transactions from the central blockchain.

[Crypto123 0]

1 hour ago, Apsimati said:

One of the biggest problems with Lightning was that it was in a very closed structure. The system is as simple as described in the title, but we do not know how it developed. We don't know who's behind it.

 

 

I did not quite understand what it meant to say "it was a very closed structure"? If you mean that it did not spread widely, then this is not a problem because it is still under development and there are a lot of things and developments for its work, but I am sure it will spread quickly.

[Crypto123 0]

42 minutes ago, Emran01 said:

I really like the existence of power networks, especially when used for transactions, with cheaper fees. I hope yaoto will make electricity easier in the future.  

Yes, the Bitcoin telegraph network will be the best solution to the current Bitcoin network problems which suffer from slow transactions and high fees. So we hope the Bitcoin telegraph network will spread soon so that we can get rid of these problems.

[Suciu 6]

I did not know about this, thank you so much for sharing this information about the Lightning Network. Good lesson.

[Crypto123 0]

10 hours ago, Sayour Arabi said:

 Lightning network is a second layer technology for bitcoin that uses micropayment channels to scale its blockchain's capability to conduct transactions. 

Yes, right, that is, the Bitcoin telegraph network is a second layer over the Bitcoin blockchain that enables you to open temporary channels to complete small bitcoin transactions quickly and with low barium, and then this channel can be closed at any time you want.

[Whited35 15285]

Lightning Network LN is basically based on offchain technology. The concept is genuine and highly secured. In the crypto world, lighting network concep has brought the change and revolutions. It has come to make the huge change in the field of crypto.

[Yaman 36]

 a concept was created by Joseph Poon and Thaddeus Dryja in 2015, i can't say this concept have been able to resolve the major problem facing crypto currency.

[Mutahir Arshad 48]

With the versatility of the Bitcoin arrange, the Lightning Network vows to make Bitcoin adaptable and ordinarily quicker, which any cryptographic money needs. It opens up data transfer capacity, accelerates exchange preparing, and spares assets.

[Crypto123 0]

2 hours ago, laio94 said:

Lightning Network is defined by many as the protocol that will revive bitcoin and that will make it usable as a means of payment intended for the mass. Bitcoin, in fact, to date has several problems due to the limited capacity of its blockchain that make it unsuitable for potential mass use for micro-payments.

First there is the big problem of scalability and the number of transactions, fixed at around 7 transactions per second. Secondly, there is the problem of fees. In fact, during periods of great congestion, as happened last December 2017, the fees to be paid to miners for confirmation increase significantly.

In December 2017, in order to pay for a coffee in bitcoin, it was necessary to pay twenty euros of commission expenses, resulting in a decidedly unusable payment system.

Well done my friend, you have extensive and really good information, yes it is true that the current bitcoin network suffers from many problems, the most important of which is the increase in the size of the block and this is the cause of major problems and differences of views on the best way to solve this problem. Fortunately with Bitcoin Lightning Network this problem has been solved.

[Mutahir Arshad 48]

This is what we're searching for, another information that perhaps can substitution the present innovation. Indeed, even I despite everything attempt to see however I truly I'm upbeat about this, so far we as a whole right, bitcoin perhaps will substitution yet the innovation will grow up without hindrance.

[Crypto123 0]

3 hours ago, tanveerbhatti said:

Affect is very well  Instep, the Lightning Arrange includes another layer to Bitcoin’s blockchain and empowers clients to form installment channels Well, all through its presence Bitcoin has as it were been competent of handling around 12 exchanges per moment. ... It’s called the Lightning Arrange. ...

Thank you for adding some good explanation and details about the Bitcoin Lightning Network, yes it really is a second layer above the blockchain network and enables you to open and close many channels at any time without having to register them on the blockchain immediately....

[Usmanjutt 3]

On 2/21/2020 at 4:19 PM, Mehedi1234 said:

That's a good question. And here I think, the primary and definitive wallet balances in the Bitcoin blockchain are print units, which dramatically increases the set throughput and reduces transaction fees. And this method is great. Basically, thunderstorms allow users to enter a number of transactions outside the main blockchain. Hopefully the methods will be followed. Thanks everyone

The answer is I think the wallet is better way to describe of primary and secondary School district and manager and they set method to perform in all field of life and all the transactions

[Sehr 288]

Oh my god what a information  you post there i have never seen such a informative information about lightingnetwork i dont know about this before butt know i know many thing just because of you 

[Diana Putri 31]

Truly, As I didn't in any way, shape or form even think it each run simillar to which will, As I actualized to make a differentiating approach around ligting associate.

[SuperCrypto 7193]

Lightning Network is a Bitcoin technology that uses Micropayment to expand Blockchain capacity to conduct transactions by taking transactions away from the main blockchain, it is expected that the Lightning Network By reducing bitcoin hoarding and reducing associated transaction fees.

[Crypto123 0]

22 hours ago, Loly said:

The introduction to the Lightning Network came to light due to the restrictions Bitcoin and many other digital currencies face. Currently Bitcoin Blockchain is able to complete 2 to 7 transactions per second (TPS) which is a payment protocol that can be used as a solution to the expansion problem facing Bitcoin Blockchain.

Thank you, my friend, for providing some new detailed information and good explanation that definitely contributes to enriching the topic and completing some of the points that were missing on the topic. This is what I always like in these constructive responses.