Community Forex Questions
What is Bitcoin's Lightning Network?
Bitcoin's scalability issue mean that smaller transactions can congest the blockchain. The Lightning Network was created to fix that.
Since each block on Bitcoin's blockchain takes an average of 10 minutes to process, only a small number of transactions can go through at a time. In 2016, developers Thaddeus Dryja and Joseph Poon proposed an idea that cloud enable fast and cheap transactions on the network without having to change the block size. They called it, the "Lightning Network."
The Lightning Network creates a second layer on top of the bitcoin blockchain that uses user-generated, micropayment channels to conduct transactions more efficiently.
These transactions are much faster than regular bitcoin transactions because they don't need to be broadcast to the entire network. And because there are no miners that need incentivizing,, transaction fees are low or even non-existent.
Since each block on Bitcoin's blockchain takes an average of 10 minutes to process, only a small number of transactions can go through at a time. In 2016, developers Thaddeus Dryja and Joseph Poon proposed an idea that cloud enable fast and cheap transactions on the network without having to change the block size. They called it, the "Lightning Network."
The Lightning Network creates a second layer on top of the bitcoin blockchain that uses user-generated, micropayment channels to conduct transactions more efficiently.
These transactions are much faster than regular bitcoin transactions because they don't need to be broadcast to the entire network. And because there are no miners that need incentivizing,, transaction fees are low or even non-existent.
Jul 23, 2021 23:22