Cryptocurrency Q&A
What is Bitcoin's Lightning Network?
What is Bitcoin's Lightning Network?
Martino
Tue Jul 16 2024
|
7 answers
1799
Could you elaborate on what the Bitcoin's Lightning Network actually is? For those of us who are still trying to grasp the nuances of cryptocurrency, could you break it down in a way that's easy to understand? Is it a separate currency or an extension of Bitcoin itself? How does it work? Does it make transactions faster or cheaper? Are there any potential risks or downsides to using the Lightning Network? And finally, what are the key differences between it and other scaling solutions for Bitcoin?
7 answers
Elena
Thu Jul 18 2024
This protocol aims to address the scalability challenges faced by Bitcoin, particularly the congestion caused by smaller transactions on the blockchain.
Was this helpful?
326
50
Tommaso
Thu Jul 18 2024
The Lightning Network enables faster and cheaper transactions by establishing a network of payment channels between participants.
Was this helpful?
81
70
Raffaele
Thu Jul 18 2024
These payment channels allow for off-chain transactions, meaning they do not require the entire Bitcoin network to validate each transaction.
Was this helpful?
347
89
HallyuHype
Thu Jul 18 2024
The Lightning Network, a revolutionary concept in the Bitcoin ecosystem, was introduced in 2016 by developers Thaddeus Dryja and Joseph Poon.
Was this helpful?
219
20
Michele
Thu Jul 18 2024
Instead, transactions are verified and settled privately between the two parties involved, significantly reducing transaction fees and improving speed.
Was this helpful?
63
34
Load 5 more related questions
