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RE: Crypto Update: Feb. 16, 2018
Hey, If lightning networks are off-chain, then don't they miss the entire point of having a cryptocurrency(that is using blockchain)?
Hey, If lightning networks are off-chain, then don't they miss the entire point of having a cryptocurrency(that is using blockchain)?
No, Lightning Network is a Network that is built to run on top of the Bitcoin Network. It is reliant on the blockchain to validate transactions. They still adhere to the immutability and other aspects of the blockchain, except they only record initial and ending transactions.
Think of it like this, if you go to a bar you open a tab, they run your card (opening transaction) after you’ve ordered a few drinks or some food you want to close your tab (ending transaction) the bar tender doesn’t run your card for each purchase, only at the beginning and end of your transactions.
I see, so it is something like multiple transactions are piled together to make a bigger transaction, reducing the number of transactions in the blockchain. But then, how does the blockchain keep track of the various transactions in between?