A Pivotal Innovation in Bitcoin You Should Know.

nc50lc

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Quote from: Wenbing on April 15, 2020, 12:13:42 AM

Since LN reduces the bulk of transaction on the normal bitcoin block chain, will one be limited to use one's coins just within the platform or network?

Hmm, your funds that are in the Lightning Network wont be available to spend in onchain payments.
You can use it again and again for other lightning payments though, as long as you have enough incoming/outgoing liquidity.

You have to close the channel and wait for a couple of confirmations before it can be used for "regular transactions" again.
But if we reach the time when everyone is using LN, closing your channels might not be considerable since you can just send and receive BTC through LN.

Don't say "normal bitcoin blochchain", it's just bitcoin's blockchain or as others said: "main chain"; LN is a network, not another blockchain.

Wenbing

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Quote from: nc50lc on April 15, 2020, 12:02:50 AM

Read this topic by BitCryptex: The Lightning Network FAQ specially the part "How fast and reliable are LN payments?".
-already linked above-

In addition to those facts, if most of the micro-transactions (small payments) are done through LN,
then the mainchain will have less pending transactions that should solve those "frictions"... But it's too early to speculate that.

Quote from: Wenbing on April 14, 2020, 11:06:40 PM

When bitcoin and the blockchian technology were introduced in 2008, there were two major frictions around the transfer of bitcoin. They were:

FYI, when Bitcoin was first introduced, the fee wasn't mandatory, you can send 0sat/byte transaction and nodes will relay it
and even after the introduction of "minimum relay fee", it wasn't an issue until late 2017 - early 2018 "blockchain craze".
First transaction: https://www.blockchain.com/btc/tx/f4184fc596403b9d638783cf57adfe4c75c605f6356fbc91338530e9831e9e16 (0 sat/byte)

Since LN reduces the bulk of transaction on the normal bitcoin block chain, will one be limited to use one's coins just within the platform or network?

Wenbing

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There is gold in volatility..

Quote from: Bttzed03 on April 14, 2020, 11:29:50 PM

Quote from: Wenbing on April 14, 2020, 11:06:40 PM

~
How does the lightening Network helps to solve these frictions in bitcoin transactions?

My simple answer is that transactions are done off-chain. They will only be broadcasted to the blockchain when a channel is opened/closed.

You should probably read The Lightning Network FAQ's

Nice one.
I also discovered that payment to be made using LN is once per time while doing transaction directly on block chain. This cut off huge cost.

The link is mainly geared towards those that desire to own the nodes for Lightening Network business.

nc50lc

legendary

Activity: 2534

Merit: 6080

Self-proclaimed Genius

Read this topic by BitCryptex: The Lightning Network FAQ specially the part "How fast and reliable are LN payments?".
-already linked above-

In addition to those facts, if most of the micro-transactions (small payments) are done through LN,
then the mainchain will have less pending transactions that should solve those "frictions"... But it's too early to speculate that.

Bttzed03

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https://bitcoincleanup.com/

Quote from: Wenbing on April 14, 2020, 11:06:40 PM

~
How does the lightening Network helps to solve these frictions in bitcoin transactions?

My simple answer is that transactions are done off-chain. They will only be broadcasted to the blockchain when a channel is opened/closed.

You should probably read The Lightning Network FAQ's

Wenbing

member

Activity: 532

Merit: 36

There is gold in volatility..

When bitcoin and the blockchian technology were introduced in 2008, there were two major frictions around the transfer of bitcoin. They were:

1.The high cost of transfer fee.
2.The delay of transfer.

In an attempt to solve this problems Joseph Poon and Thaddeus Dryja created what's known as the lightening Network (LN).

My question is:
How does the lightening Network helps to solve these frictions in bitcoin transactions?

Your input will be appreciated.

Topic: A Pivotal Innovation in Bitcoin You Should Know. (Read 173 times)