Lightning Network 101

lightning network 101

Lightning Network 101

Benefits of the Lightning Network

Speed

With Bitcoin Lightning, you do not have to wait for network confirmations and transactions are instant. As a result, the lightning network allows Bitcoin to disrupt payment systems like Mastercard, Visa, PayPal, Skrill and the like.

Cost

Transactions take place within the Lightning Network Channels and off of the bitcoin blockchain. This means you will only pay a fraction as a fee if any at all. This is one of the major advantages of the Lightning Network.

Scaling

The Lightning Network is able to take the transactions per second rate of Bitcoin and other cryptocurrencies to a mindblowing 1 million transactions per second.

Atomic Swaps

This will take some time, but cross chain atomic swaps are real and technically already possible. Consequently, with more mature markets we will see this area growing because it will be possible to eliminate the need for exchanges.

Securely anonymous

Most of the cryptocurrencies are pseudo-anonymous which means that you can still trace the transactions from one wallet to another. With the Lightning Network, most of the transactions happen off of the Bitcoin blockchain. As a result, all the micropayments made via Lightning channels will be pretty much untraceable.

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