Lightning network , Instant Bitcoin/Blockchain Transactions
THE FUTURE IS HERE !
This is coming to the Bitcoin network soon as we adopt segwit , the fear is spread among people about the Bitcoin and its network's potential split.I'm going to talk about lightning network and i will try to explain as much as possible. Frist of all let me tell you what the lighting network is and clear some confusions among those who don't understand it clearly.
This is going to be a basic introduction to the lightning network. I'm going to tell you little bit how this network works. Basically The Lightning network is promising free transactions yes it's true , The lightning network is promising free and instant transactions of Bitcoins that sounds really promising and astonishing. It is mind blowing to get to know how it works lets suppose we make a transaction in Bitcoin network we have to wait for at least 10 minutes or so , for it to be confirmed on the other hand lightning network is promising instant transactions which clearly change the whole concept of Bitcoins. In Bitcoin network we have to wait for the block to be created after that the transaction can be confirmed that is not the case in the lightning network it lies on the current system but uses an alternative method to confirm the transactions.
This network is not going to use blockchain confirmations, so there will be no fees involve for confirming any transaction. As we have seen on Bitcoin network there are larger fees to confirm a transaction those fees make your transaction a Priority on the blockchain the higher the fees the more greater chance for a transaction is to be confirmed early. If you pay Zero fee so that will be impossible for your transaction to get through it will never get confirmed by the network.
This all doesn't work on lightning network it has a theoretical concept which works exactly like if you have started a tab in a bar. For example if you start a tab at a bar you pay some amount of money in advance instead of paying for each and every drink or using a visa or credit card for every drink you consume. Starting a tab saves you much trouble of paying again and again plus the extra fees , If you are using a credit card instead of that you pay in advance so how much you consume be deducted from the amount you have paid in advance to start a tap.
The Lightning network works similarly , lets suppose you have create an account on lightning network so you have to deposit a certain amount of Bitcoins by that, you are proving the ownership of these Bitcoins and handing them over to the network. This network by adding complicated algorithms and multi signatures wallets it makes as a whole new technology. But they users don't need to understand the whole concept all the details of the network the main concept is explained similarly as a tab at a bar in order to use this network you have to deposit or open an account with the specific amount of Bitcoins and you are allowed to only use that certain amount of money that you have deposited like creating a tab. You can only spend the amount of money which was deposited in the account for example you have deposited 10 Bitcoin so the ownership of Bitcoins is confirmed and the transactions are pre confirmed by the network. So you have access now you can only send or pay or Transfer amount of Bitcoins which are not more than 10 Bitcoins your initial deposit. Whether that's a crazy example but you can only spend as much you have put in. Another example is like a prepaid debit card so you can spend only money you have prepaid or recharged in advance. This network has similar functionalities.
When you deposited your Bitcoin in lightning network multi signature wallet you create a trust with the network about your deposit. Within the limits you can send the funds instantaneously within no time waiting for confirmation of the transaction. The moment you announce the transaction the funds are locked down immediately and transferred without waiting for blockchain confirmation. Because your deposits are pre confirm by the network when you deposited in your account. This is a whole new world for the Bitcoin.The transaction can be conducted within a split second. That's the reason there are no fees for the transaction because there are no Miners involved who can create , write and confirm a block on the blockchain. This solution may not be perfect in many different ways but it has created the new possibilities. Although the development on this current project is in progress it may take time but the future is not so far.
Hi friend, very good !!!!!
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