CRYPTOCURRENCY LIGHTNING NETWORK

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Today we will be talking about cryptocurrency lightening network.

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The Lightning Network was designed to keep Bitcoin gas fees low and speedy and is lawful outside of the blockchain that helps keep transactions recorded for Bitcoin. A layer 2 scaling solution for the Bitcoin blockchain may be described as it. I'd like to talk a little bit about Bitcoin to help you comprehend. You should be aware that the Bitcoin blockchain was designed to only execute 7 transactions for every second, which causes the network to be extremely crowded and results in very expensive transaction fees because users must bid before their transaction is processed.

When we compare how many transactions Visa can process in a second to how many Bitcoin can process in a second, there is a significant discrepancy. Compared to Visa, which can handle 50,000 transactions per second, Bitcoin processes 7 transactions per second. Without a doubt, one of the key factors in the widespread usage of Visa by businesses is the speed of transactions.

Let me go into more detail regarding the Lightning Network's operation. The first explanation is based on the assumption that you went out to a bar with your friend to have a good time, got a drink for $5, paid for it in Bitcoin, and paid the $15 transaction charge for Bitcoin. You purchased the beverage five times, and each time you did, you paid the transaction fee. As a result, you would spend $25 on your drink overall and $75 on the transaction charge. More than the drinks you purchased, your transaction cost was exorbitant.

You returned a day later with the same drink, but this time you went to the cashier to record the drink you bought so that you could pay for everything at once because you are smarter now. This is an illustration of how the lighting network handles a transaction.

In order to avoid extremely high transaction costs and slow transaction fees, the Bitcoin lightning network was created. So, the lighting network works as follows: You give them your Bitcoin, and they keep a record of how much you have. You can get your Bitcoin back whenever you need it, and they will review their record and send you how much you have.

Perhaps you're wondering if you won't have to pay to create a payment channel each time you want to utilize it. You can use a payment method that has already been established by others to get around this. For example, if both of you don't have a payment channel and you both want to send your friend money for the service they provided, you can do so through the Binance exchange. You can ask Lighting Network to assist you in sending your $50 payment to Binance, a friend of yours. Given that it can scale up to a million transactions, Lighting Network is a fantastic scaling option.

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