Originally published on Feb 10, 2017
The Lightning Network is beginning to make headway into the Bitcoin codebase.
So what is it and how does it help increase the capacity and speed of transactions on the Bitcoin blockchain?
Update Feb 18 2018: Andreas M. Antonopoulos explains Lightning Network and discusses some common misconceptions.
Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and respected figures in bitcoin.
What are some misconceptions about the Lightning Network? How does the onion-routing work? How does channel funding work? Are there any security or legal risks to running a Lightning node? How far is the development so far in making this technology user-friendly? This is not a choice between on-chain and off-chain. A large portion of transaction volume has already been conducted off-chain (i.e. within the private databases of exchanges) for years; what second-layer solutions like the Lightning Network do is to allow for similar low-cost activity without sacrificing most of the security model and trustless nature of Bitcoin. Decentralisation is not a Boolean value, it is a range. The Lightning Network is not only about payment channels, there is also routing between the payment channels of others. You do not need to open a channel with every party you want to transact with. If a merchant does open a channel, they do not have to close the channel in order to be paid.
If you enjoyed this video, you may also enjoy “Keeping Digital Communities Weird” by Andreas Antonopoulos.
Published on Franklin [Litecoin] YouTube Channel
● Sources –https://docs.google.com/document/d/1a…