Bitcoin’s Lightning Network, Simply Explained!

Bitcoin’s Lightning Network, Simply Explained!

Bitcoin has a 7 transaction/second limit, so how can we overcome this? The Lightning Network is one of the proposals and in this video I’ll explain how it works.

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  1. If the Lightning Network relies on Ethereum smart contract to support its off-chain transaction, then once Bitcoin adopts the network, the burden of solving the scalability issue will be passed onto Ethereum.

    The scalability issue is not necessarily solved – just abstracted down to a lower level. Is this correct?

  2. Steven Dragoo

    so someone can do a bunch of low life trades and only one does the network see.

  3. That better be some damn good coffee for .05 BTC.

  4. This means Bob cannot buy Coffee from a shop of his choice. The transaction process will get complicated as more players and shops come so problem gets transfered elsewhere.

  5. Rodrigo Londres

    "Bob" doesn't have to create and fund a payment channel with the coffee shop, that would be insane. Imagine having to create different payment channels for every single store you shop at?

    He can simply fund a few different payment channels that will allow him to route his transactions to the coffee shop by finding a path between these channels. You can basically fund these payment channels with however much it is you are willing to spend on LN transactions, and good old computer science will do the appropriate routing for you. That's what's so great about the LN.

  6. Vertcoin looks promising.

  7. Max Krupyshev

    Very good.

  8. AKU Wong NDESO

    More coffe

  9. it is working now on Eclair Wallet!

  10. AmericanOtter

    So is it sort of like prepaying?

  11. wow that just to much work needs to be simple for it to go mainstream

  12. This LN sounds like the DEATH of large-scale debt.
    But, will you only be able borrow from the Bob and Alice of this world? No.
    I'm sure some money-mongrels will find a way to lend money to people in need at outrageous rates. But then, that might encourage people to be more financially literate and responsible with their spending habits and assets…?

  13. Why not just use Dash InstantSend for instant transactions? It's simpler and faster, and may be cheaper.

  14. What if something doesn't check out on closing the channel? And how often coffee shop needs to close the channel to get the BTC they've earned?

  15. I am curious about the following use case:

    Let's say I am visiting a city for the day and decide to buy a coffee from Coffeeshop. I know that I will only order one coffee since I do not live there, so I pay using the lightning network, opening up a payment channel with Coffeeshop. Since I am only visiting, I decide to close the payment channel directly after the transaction takes place.

    I understand that the transaction would be instant using the lightning network (correct me if I am wrong), but would I not have to pay the same transaction fee for the one coffee using the lightning network as I would using the Bitcoin network directly?

    I can see where the lightning network would benefit multiple purchases through one vendor, but I am having a difficult time understanding the value for the one-time transaction use case mentioned above. Thanks in advance.

  16. People are finally understanding how the central bankers created bitcoin. Lighting network is a local branch connected to the regional branch nodes which are connect to the NSA mainframe in Utah. Think hard and you will realize where their off site storage is and central control. Hint: there is abundant natural resources for the generation of electricity and the air is cold and  the ground water is very hot; hot enough to create abundant electricity. Got your Bitcoin?

  17. Pro Dedicated

    DigiByte doesn't need a lightning network.. DigiByte is faster and much more scalable than Bitcoin. In a very short time the wallets of DigiByte will be released with atomic swap.

  18. People should definitely check out NANO if they think this is attractive. Bitcoin is already outdated and is only useful as a store of value. There are so many different coins that do everything bitcoin aims to better.

  19. Beijing Enduro

    Good job dude! Very comprehendable

  20. Philip AJ Morris Official Music Channel

    Genius technology

  21. TheAncientOne

    Oh sheet, now the banks will own bitcoin!!!


    For video thank you man.

  23. The blockchain is a dinosaur. The future is off-chain. Bitcoin Segwit to da moooooooon!

  24. Incredibly helpful, thank you!

  25. so are lightning networks like sub networks that have channel ID's for different end to end connections?

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