Users are increasingly asking for the advantages offered by the Lightning Network (LN). We’ll explain what it’s all about.
What is Lightning Network?
Lightning Network (LN) is a payment protocol that works as a second layer on blockchain. The crypto-community had long suggested Lightning Network as a solution to Bitcoin’s scaling problem until it was implemented.
LN opens a payment channel by setting up a multi-signature wallet that contains a certain amount of cryptomoney, and then a savings wallet address in the blockchain. By having a payment channel, parties can make an unlimited number of transactions that are not made public on the blockchain.
Once all planned transactions are completed, the resulting balance is stored in the blockchain and the parties can recover their share of the wallet. You can also use other pay channels or multiple channels to reach your partner, with the network finding the shortest path.
This network is not as secure as the blockchain itself, but can be widely adopted for small transactions, and will reduce the stress on the blockchain, making it more scalable.
Lightning Network and Public Requirements
This month companies like Zap and Rawtx have announced a series of new updates to their services. This due to the high demand and demand from users when making micropayments. These are increasingly demanded by the community as the ecosystem and the cryptocurrencies market expand.
In the case of Zap, it is a bitcoin wallet created to facilitate the use of the LN protocol by all types of users, including those without technical knowledge. In this context, the decentralized LN network allows you to send and receive micro-payments through payment channels that operate outside of the blockchain, with the aim of ensuring that transactions are made instantly and without high commissions.
In the case of Rawtx, it is an application that allows multiple wallets, and each wallet has two types of accounts: a payment account and a savings account. In the first, the funds are managed on the LN network; while in the second, the funds are managed directly on Bitcoin’s blockchain.
Other companies such as Eclair, Shango and Coinclip are currently working with the Lightning Network.