The creation of the Lightning Network is a history | 10% for @tron-fan-club

The Lightning Network was introduced in 2018. This is a perfect solution to the trading fee problem of Bitcoin. It can be treated as a groundbreaking layer 2 scaling solution for the Bitcoin network. It is esigned to address the scalability limitations of Bitcoin's main blockchain. The Lightning Network is ensuring faster, cheaper and scalable transactions of the underlying Bitcoin network. This Network operates as an off-chain protocol. A network of interconnected payment channels between users is created. By leveraging these payment channels users can conduct transactions directly with each other without having to record every transaction on the Bitcoin blockchain. This allows for a significant increase in transaction throughput and reduces the congestion on the main blockchain.

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Instant and low-cost transactions are possible with the network. Since transactions occur off-chain thus they can be executed and confirmed almost instantly. Microtransactions and frequent small-value transactions are economically viable. This was the main challenge on the main Bitcoin network. The Lightning Network achieves scalability through the concept of payment channels. Users can open payment channels with each other by creating multi-signature Bitcoin addresses.

These channels allow users to transact privately and securely among themselves without broadcasting every transaction to the Bitcoin blockchain. Once a payment channel is established, users can conduct an unlimited number of transactions off-chain, only settling the final balance on the Bitcoin blockchain when they choose to close the channel. The Lightning Network has its ability to route transactions through multiple payment channels as well. The introduction of the Lightning Network in 2018 brought renewed optimism for Bitcoin's scalability. Lightning Network is a new and innovative technology.