Lighting network

in #network2 years ago

The scaling of the block chain has been a problem since its invention, and the Lightning Network is preferably a scaling solution for the block chain. It is a network of connected, bi-directional payment channels. It means that any user can convert the payment from the channel to the channel without trusting the intermediate parties; the middle parties may pay a small fee to allow the payment to be directed to them. But the process will remain unreliable.

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To fully understand this, I will try to explain this with an example.

Suppose there are 5 users: There are different channels that connect Eoin, Alex, Shepherd, Chris, Robert and Eoin to Alex, Alex to Shepherd, Shepherd to Chris, Chris to Robert.

Eoin wants to send 1 BTC to Robert, but he does not want to open a channel directly, as he is not directly connected to Robert and can cost more money to open an LN channel. Eoin's lightning knot, Alex’s knot, Alexds knot with Shepherd benzers knot, and similar to Shepherd, Chris, and Chris are linked to Robert.

So Robert will only produce a secret R that he knows and appeals to and sends H to Eoin's node.

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Now Eoin will create an HTLC to be paid to the person who can solve hash H with a 10 block return timeout and a BTC of 1.003. An excess of 0.003 BTC will be used to redirect payments to the intermediaries in the LN channel from Eoin to Robert.


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