Introduction Lightning Network, The new layer on Bitcoin!
Great news! A new layer at the bitcoin promise us more transactions per second, and lower transactions fees.
Problems Bitcoin:
High transaction fees, 10 transactions per second (Paypal 1800+ and VISA 1600+ transactions per second), huge difference.
Earlier solutions:
There was a lot of fight between to sides of the bitcoin community. one side would have bigger blocks, other would like to add segwit (https://en.wikipedia.org/wiki/SegWit) Make blocks bigger could give a lot of problems so team Segwit won. That implemented in 2009 and we still use it. But if Bitcoin will grow, and let other coins behind. They need something news. And now we have Lightning Network, a lot of people are really enthusiastic about it (include me).
Here are some improvements:
- Faster transactions
- Lower transaction fees
- Anonymity
- Atomic swaps (payments over multiple blockchains)
- Micro payments become possible
How is this possible? Everyone thought is is impossible to get more efficiency in the Bitcoin?
Well, it was hard. But the developers were really creative and found something. To improve the bitcoin blockchain is impossible. So they added a new layer! All transactions would be offchain. And so it's possible to use more blockchains for one transaction. Incredible right!? So they can make a lot of blockchains, a payment blockchain for you and your friend to see who what pays? And they found something else. At the moment it is, if I and my friend name him Bob, gets 2 Bitcoin, and I will give my friend Bob 1 BTC? Than I give him a promise over the blockchain, and he gets it when the payment channel closed. But I give Bob every week something, and he me. Than we ask a lot more of the Blockchain than we have always a open blockchain and not promise but give.
Not everyone likes it, there is a chance it will a little centralize, you need both online to use a payment gate. Bitcoins are stuck into a payment gate, if you deposit into, you can only send to the other side.
So there needs a lot of improvement! But it's a step to improve the network. And there are developers full time working at a new better Bitcoin and working for the maybe future money! But easier is to use coins as NANO (https://nano.org/en) They have all this, but haven't to open or close gates.
If you have any questions, please ask in the comments below. And please let know if you like Lighting Network, for the people who like to visit the site or whitepaper I'll post it in the comments
- Sebas
No, with the new system, you have payment gate, with selected people let's say you and I, we have a drink, and you pay for me in cash. And I must pay you back, well let's pay you back into crypto. Now, we open a gate at the blockchain (the main blockchain) I pay you 3USD dollar, and than when it's verified by miners, you got 3 USD dollar in bitcoin, and the gate closed. With the new system we make one time a gate, and we can pay each other, and the gate will not close. But... If I send money to that gate, I can't send it back. That's the problem, and if you know that, there is no problem. But it could be irritating.
Website: http://lightning.network/
Whitepaper: https://lightning.network/lightning-network-paper.pdf
Is there seriously anyone locking up Bitcoins in order to test lightning?
Can you guess what will happen with BitCoin, once the New United States Crypto-Coin is Announced...???
Do you think we as bitcoin community would accept a government coin?! Maybe a Swiss coin but not an American coin! Bitcoin can survive that one
I have some eye opening posts that no one was ever taught in school... By the way... I can't believe you paid One Steem to have this Post Resteemed... Be very careful who you deal with... I actually checked him out and found you... If you make your Steem Dollar back, I'd be shocked, so let me know... By the way... You can enter my contest for Free and possibly receive 10 Steem Dollars this coming Wednesday...
Well, I thought let's try. I think this is an important and interesting article. And I don't get that coin back. It's only 2 USD dollar. To let people know the last news about bitcoin and it would be nice if I got that coin back with upvotes. And ifs not, well be my guess. I liked to try.
Some of my most important Posts only received 4 Cents... lol...
Yeah, I'm new here and money is not my reason. I like to let people know the last news of things, and it's fun you see your post earn 0.10 USD
Are you here for the money? Or for the community?
It has been a long hard struggle... I have a couple of Contests going on that are Free to Enter if you have just a little time on your hands...... Just click on my screen name, and it will take you there...
Yeah I thought let's try kickstart, 70K people tomorrow morning my important article.
And others I throw 2 USD out the window. When I go to a cafe I do the same.
I dont see a problem with bitcoin it is the best network and costs more but you get what you pay for with a quadratic blockchain. Many other coins are plagued with security network problems.
Dash and litecoin have alot to offer and if these coins do begin connecting through Komodo then the lightning network will be unstoppable.
Bitcoin is to slow, too high fees. And a few other coins become better, so if Bitcoin will survive he needs something and this could be a solution, but it's not perfect
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STOPTo support your work, I also upvoted your post!