What is the Bitcoin Lightning Network?

[Suba]

Lightning Network is a protocol for Bitcoin transactions at the second layer and runs on the Bitcoin blockchain, so Lightning Network (LN) is more like an add on or plugin. LN is a solution for scalability on the Bitcoin blockchain, by using smart contracts, payment channels are made outside the Bitcoin network (off-chain) and payment channels will be included in the blockchain when payment channels are verified and closed.
So that it will make Bitcoin transactions lighter and very fast and even almost free of charge.

Actually Lightning Network (LN) aims to make small transactions (micro payments) but high transactions, and anonymous because transactions are not recorded on the Bitcoin network.

 

[Golden9]

Bitcoin network is still slow despite this and Binance had to halt deposits and withdrawals for a while last month.

 

[Suba]

Bitcoin network is still slow despite this and Binance had to halt deposits and withdrawals for a while last month.

As far as I know Binance and other crypto exchanges stopped Bitcoin transactions both deposits and withdrawals because of the dense blockchain, so what was stopped was not the Bitcoin Lightning network. Moreover, Bitcoin LN is rarely used, maybe because of the risk of hacking.

 

[Blessed19]

Bitcoin lightning network has been something that I got to know about last year when I started engaging in a paid to post site that do giveaway on it everyday and I do make use of the lightning network to refill my mobile phone after creating invoice on bitrefill, copy the invoice created and paste it in he site which at the end of it pays for my phone's bill.

 

[Suba]

Although the Lightning Network can solve the Bitcoin blockchain congestion problem which often results in high transaction fees and slow confirmation processes, unfortunately the Bitcoin Lightning Network is only recommended for small transactions, because it is considered prone to hacking.

 

[iyanpol12]

How I wish crypto exchanges enable Lightning Network too. Bittrex, I think, accepts Bitcoin through Lightning Network. I hope Binance, Kucoin, Coinex, etc. accepts from Lightning Network.

 

[Suba]

How I wish crypto exchanges enable Lightning Network too. Bittrex, I think, accepts Bitcoin through Lightning Network. I hope Binance, Kucoin, Coinex, etc. accepts from Lightning Network.

The Lightning Network does not run on top of the Bitcoin main blockchain but on the second layer. So that not all crypto exchanges and crypto wallets support the lightning network, as far as I know, there are only two crypto exchanges that support LN, such as Binance and Kraken, and you also have to store Bitcoin in lightning network special wallets such as Breez Wallet, Satoshi Wallet, Phoenix Wallet etc.

 

[Bisolami]

It is very slow and that is why people prefer to use other networks instead of using bitcoins when there are other ones that we can use that are very fast

Bitcoin network is still slow despite this and Binance had to halt deposits and withdrawals for a while last month.

 

[Suba]

That's why the Bitcoin Lightning network was created to speed up Bitcoin transactions and is even able to process 1 million transactions per second, with very low fees, almost free, because you only need to pay when you open the lightning network, then you can transact for free.

 

[Golden9]

That's why the Bitcoin Lightning network was created to speed up Bitcoin transactions and is even able to process 1 million transactions per second, with very low fees, almost free, because you only need to pay when you open the lightning network, then you can transact for free.

If it's supposed to be this good, why are Bitcoin transactions still slower than that of others? Considering that it will become even bigger in the future, it's something that should be solved.

 

[iyanpol12]

The Lightning Network does not run on top of the Bitcoin main blockchain but on the second layer. So that not all crypto exchanges and crypto wallets support the lightning network, as far as I know, there are only two crypto exchanges that support LN, such as Binance and Kraken, and you also have to store Bitcoin in lightning network special wallets such as Breez Wallet, Satoshi Wallet, Phoenix Wallet etc.

I am not aware Binance supports Lightning Network. I checked it on my account, it isn't one of the networks included. Maybe I'll use Bittrex again since it's one of the exchanges I saw which I saw that uses LN. Or maybe try Kraken.

 

[Suba]

If it's supposed to be this good, why are Bitcoin transactions still slower than that of others? Considering that it will become even bigger in the future, it's something that should be solved.

Good question, Why are Bitcoin transactions still slow until now, ok, so far we are transacting both from wallets and crypto exchanges using Bitcoin main blockchain or layer 1, and you cannot send from Bitcoin wallet lightning network to Coinbase, Atomic wallet etc. because this wallet does not support lightning network. As I explained above, there are only two large crypto exchanges that already support LN, namely Binance and Kraken. and you can also install Bitcoin wallet LN on mobile apps.

 

[riberet19]

I am not aware Binance supports Lightning Network. I checked it on my account, it isn't one of the networks included. Maybe I'll use Bittrex again since it's one of the exchanges I saw which I saw that uses LN. Or maybe try Kraken.

I think I heard that Binance had implemented Lightning due to congestion in the Bitcoin network, on the other hand exchanges like Kraken had it incorporated for quite some time, little by little more exchanges will add it.

 

[Suba]

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I think I heard that Binance had implemented Lightning due to congestion in the Bitcoin network, on the other hand exchanges like Kraken had it incorporated for quite some time, little by little more exchanges will add it.

I totally agree with you, even though currently only the Binance and Kraken crypto exchanges have the Lightning network feature, gradually more and more exchanges will implement it, maybe even a crypto wallet. because it is very fast and cheap

 

[riberet19]

Yes, also now in the Bitcoin network, the brc-30 tokens have been proposed, which are the evolution of the brc-20 tokens with which you can also stake within the network, if this is approved the network will continue to be congested even more, so Lightning would become a duty rather than a possibility.

 

[Suba]

To my knowledge, I have discussed brc20 and the conjested Bitcoin blockchain in a separate thread, because of that some Bitcoin lovers reject the existence of brc20. But that's the brc20 business that will continue.

 

[riberet19]

To my knowledge, I have discussed brc20 and the conjested Bitcoin blockchain in a separate thread, because of that some Bitcoin lovers reject the existence of brc20. But that's the brc20 business that will continue.

Yes, I am not very in favor of brc-20 tokens but now they want to move forward and become brc-30 with more functionality and therefore more data and size in the Bitcoin blockchain which will bring more congestion.

 

[iyanpol12]

I think I heard that Binance had implemented Lightning due to congestion in the Bitcoin network, on the other hand exchanges like Kraken had it incorporated for quite some time, little by little more exchanges will add it.

I checked it, and yes, Lightning Network was already implemented on Binance but only through withdrawals? I can't see any way how to deposit BTC on Binance by using Lightning Network.

 

[uptrendfinancialsignal]

I checked it, and yes, Lightning Network was already implemented on Binance but only through withdrawals? I can't see any way how to deposit BTC on Binance by using Lightning Network.

I have not also seen this on Binance but the lightning network is a very effective bitcoin network that will aid a fast transaction.

 

[riberet19]

I checked it, and yes, Lightning Network was already implemented on Binance but only through withdrawals? I can't see any way how to deposit BTC on Binance by using Lightning Network.

Yes, I assumed that the news was true, now more than ever due to congestion in Bitcoin the exchanges must incorporate lightning network since the fees are too high in the main bitcoin network.