LIGHTNING NETWORK: Transactions scalable, snapshots of Bitcoin / Blockchain BTC

LIGHTNING NETWORK: Transactions scalable, snapshots of Bitcoin / Blockchain
BTC

Lightning is a decentralized network that uses smart functionality blockchain contract to allow instant payments through a network of participants.

HOW DOES IT WORK

Lightning Network depends on the underlying technology blockchain. Using actual transactions Bitcoin / blockchain and use their native language intelligent writing contract, you can create a secure network of participants who can transact high volume and high speed.

Bidirectional payment channels. Two participants create an entry in the ledger blockchain requires that both participants sign any expenditure of funds. Both parties create transactions reimbursing input greater than their individual assignment book, but not transmitted to the block chain. They can update their individual assignments for entry ledger creating many spending from the result of the entry of the current general ledger transactions. Only the latest version is valid, which is applied by intelligent scripts analyzable by blockchain contract. This input can be closed at any time by either party without any trust or custody to transmit the most recent version chain block.

Lightning Network. By creating a network of these accounting entries in two parts, you can find a route through the packages similar to Internet routing network. Nodes along the route are not trusted, since payment is applied by a script that applies atomicity (whether all payment is successful or not) reducing blockages time.

Blockchain as Arbiter. As a result, it is possible to transact outside blockchain without limitations. Transactions can be made outside the chain with the confidence of the applicability of the blocking chain. This is similar to how one makes many legal contracts with others, but one does not go to court every time a contract is made. By making transactions and scripts processable, intelligent contract can be applied in blockchain. Only in case of lack of cooperation is the court which is involved, but with the blockchain, the result is deterministic.

TRANSACTIONS FOR THE FUTURE

Instant payments. Blockchain payments fast as light without worrying about time block confirmation. Security is enhanced by smart blockchain contracts without creating a transaction in blockchain for individual payments. Payment rate measured in milliseconds to seconds.

Scalability: ability to make thousands of millions of transactions per second across the network.

Low cost. To transact and establish external chains, Lightning Network allows exceptionally low rates, enabling use cases emerging as instant micropayments.

Cross Blockchains. Exchanges atomic chains may be produced outside the chain instantaneously with consensus rules heterogeneous chain blocks. Whenever chains can support the same cryptographic hash function, it is possible to block transactions between chains without relying on third - party custodians.