Topic: A simple bitcoin Q/A. Learn new and interesting stuff about bitcoin. - page 8. (Read 27372 times)

I may be misreading it, but surely this part of the contentiously quoted answer should be consensus for the answer to make sense anyway?

he did not even rephrase...
Good catch mate.... but just little late pugman already awarded him

Yeah this definition is pretty straight forward and most laziest one like he said.

But pugman was looking for this answer? Really?
To me question was having three parts "What is lightning network? What's its role and what does it do?" i thought it should be answered to the point and separately

Anyway next time will go for the lazy answer :p

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Too much copy paste, and without source but he is wining merits another post copied from quora

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pugman next question please?

BURNED. You've been tricked of some precious word of somebody. That guy is actually a shitposter as you can review his account and old posts. 

You have got to be kidding me.. I gave you(joms123) the benefit of the doubt,and it kinda screwed me over. I can't take back the merit I gave to joms123 but you're getting banned.
Thanks theyoungmillionaire  for bringing me this to attention.

Your answer is just a copy paste from this website: https://www.quora.com/What-is-Lightening-Network-and-what-does-it-do-Which-cryptocurrency-stands-to-gain-the-most-from-this-technology . You should at least cited their website as your source.

Lightning Network

This terms explains everything in a clever way, so I’ll simply reiterate for the laziest who don’t feel like clicking a link:

You and I sign a contract.

As long as we both respect it, no one else needs to know we have this contract. But if I try to screw you, you want to be sure there’s someone who can force me to desist.

That’s Lightning Network: the contract is a smart contract, the enforcer is the blockchain. As long as no one breaks the law, millions of smart contracts can be stipulated simultaneously off chain, thus reducing greatly the amount of congestion on chain, but as soon as there’s a contentious, the smart contract can be broadcasted on the network (classic BTC transaction) and the power of blockchain will fix the issue. As simple as that. It’s just the translation of common practices into crypto-space.

What is lightning network?
This is an idea for a instant peer to peer off-chain transactions, without touching the information stored on the blockchain

What's its role?
To minimize the number of transactions per block, (logically increases the overall network speed)

what does it do
It minimizes the fee and eliminates the long confirmation time of blockchian. Thus making transactions almost instant. For security it uses blockchain smart-contracts.

LN is less secure of course because the beauty of blockchian is missing however it can be used for micro or low risk payments.

What is lightning network?

Think of the phone in the old days. To call and talk to someone you had to open a call with a carrier and she would connect you to the other end. This had a high cost because it was something unexpected that involved various actions and people.

Today, its cost is close to zero when using some messager to connect with another person. This is because you are already connected to the network, just like the other person. You are already connected even if you are not exchanging any information directly. When you need to change some information, this cost is much lower than when calling someone.

In the LN the same occurs. You open a channel and connect to someone using this second layer. Unlike using blockchain directly, your costs will be lower, since you are using this second layer.

What is lightning network? the LN is an off chain protocol intended to fix bitcoin scalability  problems without the need to alter the bitcoin protocol .

What's its role? The role of lightning network (LN) in relation to BTC is to reduce transaction confirmation times as TXs will be instant thereby reducing transaction fees. The LN will allow crypto users to make micro payments as fees a much cheaper and the LN will also allow for coin compatiblility(Cross Blockchains)


what does it do? It enables instant transactions thereby reducing number of unconfirmed transactions and increasing the number of transactions that can be processed in a second thereby competeing with the likes of VISA that can process over 2,000 transactions per second on average as compaired to bitcoin which processes less than 7 transactions per second.

Question: What is lightning network? What's its role and what does it do?

Answer: It is touted as being one of the main potential solutions to a common problem in cryptocurrency - scalability. Simply put, it is an additional layer on top of the original blockchain, using whichever native currency it is built on - it does not have it's own currency. It simplifies and speeds up the payment process by creating a multisig wallet - in layman's terms, it could be described as the crypto equivalent of an 'escrow wallet' - on the blockchain. Any subsequent transactions are then conducted (there's your lightning link!) directly between the relevant parties, and only once they decide to close it out is the final balance posted on the blockchain. The process is almost instant as the information is only required to be posted on the blockchain at the beginning and end of the process, all other transactions are done directly between the parties involved. This also nullifies the need for miners to confirm the transactions, meaning that fees are much lower than the current methods - as little as one Satoshi per byte. It should therefore prove to be especially useful for micropayments because of the substantially lower costs for transactions. All this being said, it is still a work in progress - albeit progressing at 'lightning pace' - with doubts in some corners as to whether it will really be the game changer 'experts' think it will be.

It was not everything I was looking for,but there was some useful information about it and you put some thought into it. So,I'll give you a merit,even though you may not be a native English speaker.
I am still looking for good answers.

Not gonna copy some crap from google but my ans is purely from my point of view

Lightining network from what i have heard was a solution to the slow transaction speed and high fees , though even the speed has increased and fees has gone significantly low you can't really call bitcoin a llightning network. The lightining original was found in ltc roadmap it was going to be implemented but don't know why the delay

Lightining network allows us to transfer coins with faster confirmation like we saw in ripple , xlm and many other coins
It's role is just enhancing user experience while they are transferring funds
Like i said above facts are just told from what i know even if it's wrong i would be happy to learn more about it

Edit: Just saw what darkstar posted on your campaign thread : https://www.reddit.com/r/Bitcoin/comments/7pwna9/lightning_network_megathread/ all those who don't want to learn but just behind merits refer this

Since the lightning network is becoming more popular now,a lot of people are really confused on what actually it is.  So here's a question about it:

Question: What is lightning network? What's its role and what does it do?

I am looking for a simple answer or basically in layman's terms,so that people can actually understand.

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Oh crap,I almost forgot..

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Don't post just because you have to earn a merit. I am seeing a lot of one/two liners just being rephrased from third party websites. Please understand what you're writing. Or just don't do anything rather.

Hi Pugman
I am eagerly waiting for the next question.

When reading this article I realized a lot about the formation of Bitcoin. Posts are good for newbies like me, thanks all

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You can refer this image for help https://i.imgur.com/vFtLEbE.jpg

Thank God after a long search, I found this thread full of intangible information. Thank you @pugman for having the initiative of doing this thread.  I am a newbie when it comes to bitcoin information, I only trade what I can see a good trade in the chart and never  gave importance about learning what is bitcoin really is. With all due respect, may I kindly ask your approval if I can join this question and answer here because as I can see only member and higher position are allowed to answer.

I get the reasoning behind the post, but that hurt...'an attempt'...

Just in case anyone takes your answer serious:

Blockbuster Video did NOT operate a distributed ledger.
They kept a private ledger for the movies that its customers had checked out at any given time. Blockbuster was a centralized organization that operated a centralized ledger.

While I know you were making an attempt at humor with your post, I just don't want anyone to take it serious as a "fun" or "whimsical" answer to explain what a distributed ledger is.

I found something interesting for this old question. This question really got my attention at the time it was first posted, but i didn't knew anything about it at the time.
I just read about it in the book Mastering Bitcoin (Antonopoulos). As have nobody to talk about it I will post here.


I was reading about deriving child keys, and then I found about Extended Public Keys (xpub).
This may be pretty basic stuff but I just learned about them now.

Extended Public Keys can be used to create child public keys (only public keys).
This kind of key can generate infinite child public keys and public addresses, but none private key.

In this case they are very useful.
You can install the extended public key on a web server, online, and leave your extended private key in a offline wallet.

If you are going hire developers, you could give them only the xpub, so there would be no way for them to steal your money.

Antonopoulos even talks about Mycelium Gear (I never used it), a program which could generate an unique address for every purchase on the online store.

I think the whole process of accepting bitcoin in a big store may not be so complicated after all.

One additional step for security: Extended public keys can be used to generate private keys if a SINGLE private key is leaked.
There is way to avoid this. There is also something called Hardened derivation. If xpub are generated from a hardened parent, the leak of a private key is not a risk anymore.

I am still learning, just read about it. Tell me if something is wrong.