Thank you for attending the lecture in Steemit-Crypto-Academy Season 3 & doing the homework task-7

Moreso, it enables a microtransaction that is not allowed in the traditional financial system.

That is allowed, but not cost-effective owing to higher transaction cost.

the user does not spend as much as 1 satoshi and at the same time no fees attached.

Correction-- A user can spend as low as 1 satoshi to as much as the outbound capacity.

Arbitrage for Exchange: Lightning network can be used to figure out a trading strategy in the sense that a user can compare prices from other exchanges to prices on lightning network, and use these prices on the network to place a profitable trade.

The cold storage used by the Exchanges can be replaced with LN fund.

Now, the first user opens the payment channel by starting the transaction which now creates a multi-signature address, then the second user sends funds to that same address and signs the transaction, this signifies his ownership of the funds. However, if the first user signs in as the receiver, then the exchange can take place and the channel will be closed. So unlimited transactions can be carried out at lesser cost. But if otherwise, the funds remains in the escrow, so all of this transactions happens off-chain.

A channel is a 2of2 multisig wallet. If it has a capacity "x", and if on one side of the channel the capacity is "a", then on the other side it will be "x-a".

A balance or a certain capacity is always available in a channel right from the moment the channel is created, so a user is free to spend any amount up to a max of the outbound capacity and any number of times subject to outbound capacity.

it was looped directly rather they were presence of intermediaries (Electrum Trampoline Node).

Because the payment is routed through an intermediary(Trampoline Node).

Always specify/indicate the address associated with a Settlement transaction in a Block Explorer.

Observation/Suggestion/Feedback:-

• The author has demonstrated(with a real eCommerce purchase) "How to open a channel, make a payment(e-commerce, Merchant), and how to close the channel using Electrum Wallet" with all the screenshots included.
• The author has also practically showcased his experience with Funding Transaction, Settlement Transactions using a Block Explorer.
• The screenshots are too small to read. Center alignment of the screenshots will render the best effects in terms of styling and presentation.
• Better Quality of Analysis will portray a comprehensive understanding of the subject.
• One round of proof-reading is required. Use Grammary to fix it.
• Markdown styling is broken at a few places. You need to fix it.

Thank you.

Homework Task -7 successfully accomplished
[6.5]