What is a lightning network?

[Crypto123 0]

On 2/29/2020 at 8:19 AM, tiramen said:

With the adaptability of the Bitcoin arrange, the Lightning Organize guarantees to form Bitcoin adaptable and numerous times quicker, which any cryptocurrency needs. It liberates up transfer speed, speeds up exchange preparing, and spares assets.

Yes, well, we can liken the Bitcoin Lightning network to these things if you like. Everyone can understand the issue in their own way and use the simulations that suit it, but the important thing is that it speeds up transactions and reduces fees.

[George10 9932]

I normally just hear about lighting network without having much knowledge about it and thanks for the great infor on the clarification.

 

[SuperCrypto 7193]

In the Lightning Network, interested parties only need to interact twice with the Bitcoin blockchain. Once to open the payment channel again to close it, which means that all other transactions within the channel do not interact directly with the main chain.

[SuperCrypto 7193]

There is a real need to flow Bitcoin payments with the lowest cost and highest speed, which is what really happens especially in the case of small transactions, and this is what the Lightning Network provides.

[Shimla Diya 42]

Actually I knew about lighting network. But it wasn't clear to me..this is what we are looking for another knowledge that maybe can replacement today's technology ..so far we all right, bitcoin maybe will replacement but ths technology will grow up without barrier. And I am really happy about this matter 

[Crypto123 0]

18 hours ago, ashraful25 said:

The Lightning Network is a proposed system built on top of Bitcoin that would let people instantaneously send/receive payments and reduce transaction fees by keeping them off the main network. It helps Bitcoin be more useful as a day to day currency.

Thank you for this good illustration of the Bitcoin Lightning network, yes it is true that it is, it is a layer above the regular Bitcoin network that allows people to make their transaction quickly without taking long to register it on the Bitcoin network.

[SHAKILZ 23]

may be suitable for micropayments, as it allows the transfer of smaller values. Furthermore, automated micropayments can be applied from machine to machine economy...

[Crypto123 0]

On 3/6/2020 at 10:25 AM, Pinky55 said:

I know that the lighting network was created to break some limit of bitcoin but never know who is the creator of it but bro after reading your article I found somany unknown facts

It is not important to know who is the maker of the Bitcoin Lightning Network, but the important thing is to know what are the features of the Bitcoin Lightning Network, and its most important features, which are the great speed in transfer and the fees decrease significantly, as you can transfer any amount of Bitcoin no matter how small.

[bliznec 22267]

The Lightning Network (LN) was created in order to make transactions much faster than that, and the cryptocurrency, together with the blockchain, links it and does it. The faster the transaction, the faster the cryptocurrency transfers. 

[Crypto123 0]

5 hours ago, fila said:

The lightning network is becoming more and more popular for users of bitcoin to transfer their coins as the main block chain tools within bitcoin are becoming increasingly congested and slow transactions are being reported.

Yes, there are a lot of slow and late transactions on the Bitcoin network and I personally have had this problem with me as my transaction was delayed for many days and was stuck in the network, with the Bitcoin telegraph network no such problems will occur and transactions will arrive very quickly.

[Crypto123 0]

1 hour ago, manetunoe said:

The introduction of the Lightning community turned into triggered by way of the constraints that no longer best Bitcoin however by many different cryptocurrencies are facing. presently, the Bitcoin blockchain is simplest capable of system from 2 to 7 transactions according to 2nd (TPS). as the cryptocurrency environment grows and greater human beings be a part of the network, the number of transactions being broadcasted to the blockchain also increases. because the community receives more and more congested, the overall overall performance is compromised, which greatly reduces the practical usability of Bitcoin as global digital foreign money. In this kind of context, the LN become created as an try to alleviate the community congestion of the Bitcoin blockchain.

Thank you for the detailed explanation, in fact the main reason is the increase in the block size due to the growth of the bitcoin network very significantly which led to a significant increase in the block size and slowdown of the transaction due to the large number of verification. So the Bitcoin Lightning Network was invented to solve all these problems.

[Crypto123 0]

4 hours ago, Godivnik9 said:

I khow before about lighting network but not khow full about this.but, now i khow full about this network.i khow how it work and how to given us good service.thanks for share share with us this nice post.

 

Thank you for your kind words, I am very glad to provide the knowledge and good and useful information to the members here, and I consider this my duty and the duty of everyone to work permanently to provide useful information and useful topics.

[Rares002 262]

Lightining network is a part of bitcoin. It's a upgradable version of bitcoin network. It has a great feature. In 2019 some satelite send to space to launch this project. After bitcoin transaction will be more faster and we can also use it in offline. we can make transaction even we are in offline.

[Crypto123 0]

On 3/17/2020 at 2:53 PM, SlavaKPSS said:

Surprisingly, I still did not know about the software, but nevertheless, after checking the software, the Document learned all about many different works of the country, and they look like pretty decent mobile phone network sites. Information about this approach is very lightning fast on an extremely fast mobile network.

Well, I can briefly tell you about the Bitcoin Lightning Network, it is a network of solutions to old network problems that suffers from slow transactions and high fees. Bitcoin Lightning Network solved the problem with low speed and fees.

[Crypto123 0]

16 hours ago, Tomas2020 said:

The Lightning Network is a Bitcoin scaling solution that will enable transactions much faster and much cheaper. It represents the second layer that relies on the main blockchain technology.

Yes, the current Bitcoin network suffers from many problems, the most important of which is slow transmission and reception and high fees, so a fast second layer, the Bitcoin Lightning Network, was invented to solve these annoying problems.

[Crypto123 0]

On 3/26/2020 at 6:37 PM, Ngetpa said:

I honestly do not know what is the lightning network and because of your post I become aware what it is. Thabk you for sharing it because my knowledge has increase again.

Thank you for your honesty, and I am very glad that I provided you with this useful information about the Bitcoin Lightning Network. It is very important to spread knowledge among all members about this network that has very big advantages.

[Crypto123 0]

10 hours ago, joy025 said:

The main problem is that it needs a private wallet and not an ordinary Bitcoin wallet or exchange. But this is not a big deal and will be resolved automatically as the lightning network spreads.  We want replies to be a good addition to the topic and not off-topic.

Yes indeed, we want the responses to be constructive and positive and not stolen from the comments of others, there are some members who steal others ’responses and put them as they are and they think that no one is discovering them but they are wrong.

[Lover840 0]

On 11/21/2019 at 10:14 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

I have heard a little about lightning network. Its something that it used to increase of transaction speed in blockchain. I think the ripple coin has the fastest transaction speed because of lightning network. 

[AkaCrafterCZ 1140]

That's a lot of useful information. I didn't understand it completely, I'll have to read something about it somewhere else. It's true BTC has a big mempool with stuck transactions that can't get confirmed and can stay there for a few days straight before someone confirms it.

[Crypto123 0]

19 hours ago, AkaCrafterCZ said:

That's a lot of useful information. I didn't understand it completely, I'll have to read something about it somewhere else. It's true BTC has a big mempool with stuck transactions that can't get confirmed and can stay there for a few days straight before someone confirms it.

Bitcoin Lightning Network solves regular Bitcoin network problems, the most important of which is the delay in transactions until they are confirmed and the problem of high transfer fees. With Bitcoin Lightning Network, you can make transfers quickly and at low fees.

Edited April 2, 2020 by Crypto123
correction

[tienda 8776]

Thank you for sharing this big information about Lightning Network, is very important to know anything about things related to cryptocurrency, and this Lightning Network form part of Bitcoin development.

[scorpiali 5626]

On 2/27/2020 at 3:38 PM, UpretiKing said:

Lightening Network helps to reduce fee a lot. While using lightning network you can find its very cost efficient and fast. I am using this network during top up. Thanks to Joshep for this wonderful idea

Is it more fast than normal network , i never use this service until now but if like that for sure i will do it and the fee is lower as you say 

[BTC Future 3946]

I'm sorry if someone mentioned this before, but there are many replies and I can't possibly look all of them. What I wanted to add is that the Lightning Network is still in development and should be treated as like. Testing it with any amount of money without being a developer, or potent enough to understand how to use it, can lead to loss of funds. Right now Lightning Network is not for everyone, although it is being used and I have reports from merchant friends that they recommend it. 

[Crypto123 0]

18 hours ago, BTC Future said:

I'm sorry if someone mentioned this before, but there are many replies and I can't possibly look all of them. What I wanted to add is that the Lightning Network is still in development and should be treated as like. Testing it with any amount of money without being a developer, or potent enough to understand how to use it, can lead to loss of funds. Right now Lightning Network is not for everyone, although it is being used and I have reports from merchant friends that they recommend it. 

Your words are completely accurate, my friend, and don't worry, no one has written like your response before because most of the members who have responded here have not heard about the Bitcoin Lightning Network, your words are true that they are still in the development and have not spread widely yet, but there are some exchanges like Bitfinix Officially announced the start of the use of the Bitcoin Lightning network to withdraw and deposit in exchange.

[Crypto123 0]

3 hours ago, Qazi said:

i read many of your articles, mostly you made it with high quality English vocabulary which is tough to understand for rvery one, but still appreciate your work for bringing new topics every time. 

Thank you, my friend, for your kind and encouraging words. I try, as far as possible, to write topics of interest to everyone, and I try to make it easy and understandable, even though English is not my native language. So I apologize if there are some errors.