The Lightning Network (LN) is a scaling solution for distributed payment networks.
Lightning is constructed from building blocks known as payment channels. The concept behind payment channels is simple but powerful. They allow users to open a channel off-chain and transact there instead of on the public ledger. Because they’re off-chain, transactions in the channel can be extremely fast and cheap, but similar to on-chain transactions, there’s no counterparty risk.
When the channel participants are ready to go their separate ways, they close the channel and settle back to the public ledger. No matter what happened in-channel, the rest of the world only sees that final transaction.
This trust-less system based on smart contracts helps fix Bitcoin’s scalability issue. By bringing utility such as LN into a furthering decentralized ecosystem, the use of Bitcoin of as a day to day currency will start to see exponential growth.
The draft system was submitted on Jan 14 2016 and proposed “Scalable off-chain instant payments.”
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ADMCO is bringing Bitcoin economy to Alberta, focused on a distributed and independent crypto-currency mining operation. Working with local businesses and collaborative interconnectivity, we make mining accessible and efficient. So why is mining important? Crypto-currency mining is what unlocks and verifies the Bitcoin for transactional use.
Bitcoin refers to two things. Bitcoin is a digital currency. It is also an online payment method in which bitcoins are used.
Bitcoin is the first virtual global, decentralized exchange money/coinage that lets you to send and receive money from one person to another without including any third party or middle man like broker and bank. It’s a transaction between the sender and receiver, just two people or peer-to-peer. You just need your computer and internet to make transaction because Bitcoin is basically one type of software. Transferring money via Bitcoin is just like sending an email. It just takes a couple of minutes to transfer the virtual money.
Bitcoin is digital money used for protected and prompt transfer of value anywhere in the world. It is not controlled by anyone or issued by any bank or government – instead it is an open and free network which is managed by its users and anyone can take benefits from it. Much in the way email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods which were not designed for the internet era.
You might think that the lack of control could mean chaos, but that’s not true at all. That’s because Blockchain, the technology behind Bitcoin is one of the most accurate and secure systems ever created.
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
It’s the first example of a growing category of money known as cryptocurrency.
Bitcoin price is so volatile everyone is curious. Bitcoin, the category creator of blockchain technology, is the World Wide Ledger yet extremely complicated and no one definition fully encapsulates it. By analogy it is like being able to send a gold coin via email. It is a consensus network that enables a new payment system and a completely digital money.
It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. Bitcoin was the first practical implementation and is currently the most prominent triple entry bookkeeping system in existence.