Represents the second layer added to the chain of the famous crypto, allows operations outside the chain; in other words, between parties that are not on your own network..
There are multiple channels of disbursement that make up the second layer. A channel of this technology allows sending or receiving movements of cryptographic funds. In addition, it improves the capacity of applications when managing external operations, while taking advantage of the powerful paradigm of disaggregated security.
In this context, the new development charges low amounts through external operations, allowing new use cases such as instant micropayments that can solve the traditional conundrum of "can you buy coffee with crypto ?", Speeding up processing times and reducing costs. associated expenses (energy costs).
However, although the intention is there, this development continues to struggle to resolve several pending situations. It is also important to mention that other "realities" have emerged such as low routing fees and malicious attacks..
Now, the question arises: If the routing rate is so low, why would a node want to validate such a transaction?
The clear answer is that, the mining sector generally does not validate small operations, as they will earn lower fees for validating insignificant transactions. Consequently, merchants pay a routing fee and may have to wait a long time before the transaction is validated. Although it is always possible to find alternatives to improve income, now you can consult with Yuan Pay App , they use new data analysis methods to help you connect with the best brokers in the sector.
As for malicious attacks, they could start multiple payment channels and shut them down all at once. Those channels then need to be validated, which gets in the way of the legitimate ones, congesting the network. During congestion, the attacker could extract funds before legitimate parties are aware of the situation..
How does this development work?
This protocol allows the creation of a peer-to-peer payment channel between two parties, such as between a customer and a coffee shop. Once established, the channel allows them to send an unlimited amount of moves that are almost instantaneous, as well as cheap. It acts as a small ledger of its own so that users can pay for even smaller goods and services, without affecting the Bitcoin network.
To create a payment channel, the payer must block a certain amount of Bitcoin on the network. Once the Bitcoin is blocked, the receiver can invoice the amounts he deems appropriate. If the customer wants to keep the channel open, they can choose to add Bitcoin constantly.
By using a channel of this instantaneous network, both parties can operate with each other. When contrasted with these ordinary steps in the chain, some are handled differently. For example, when two parties open and close a channel, they only update on the main network.
The two parties can transfer funds between them indefinitely without notifying the main chain. Like all procedures within this technology, they do not need to be approved by all nodes, the strategy substantially speeds up each process.
Finally, when the two parties decide to terminate the management, they can close the channel. All channel information is then consolidated into a single operation, which is sent to the main Bitcoin network for registration. Consolidation ensures that dozens of small transactions flood the network at once, simplifying them to spend less time and effort during the validation stage.
A summary of the pros and cons of the Lightning Network
The obvious pros of this alternative lie in 2 factors: savings in commissions and greater speed, allowing micropayments in a way that was never possible before. Without this development, users would have to pay high fees for a simple transaction and then wait an hour or more for it to validate. On the other hand, it is necessary to purchase a wallet compatible with the Lightning network to be able to take advantage of it. Although finding a wallet that works is easy, the user needs to fund it from a traditional Bitcoin wallet. The initial operation from the traditional wallet to that of the network has a cost, so an amount related to this concept would have to be added.
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