Topic: How Bitcoin transaction process (Read 132 times)

I believe there are other threads about LN on the Development and Technical discussion boards, such as these ones[1][2]. There is also another one on the Beginner boards[3], although the discussion seems to have died down. I don't think there is a problem if you bump it again, as long as you have some questions that are yet to be answered, or new information that you want to share.

[1] https://bitcointalksearch.org/topic/m.44524521
[2] https://bitcointalksearch.org/topic/the-lightning-network-faq-5158920
[3] https://bitcointalksearch.org/topic/a-beginners-guideline-to-bitcoin-lightning-network-5202798

So my findings bitcoin and lightning nextwork process differently.

Bitcoin transaction fee on the main network is different from the transaction fee on the lightning network. Lightning network is layer 2, it works differently and it is cheaper and faster.

Because of the high transaction fee on the main network, was the reason lightning network was invested in some years back. But some people are still not confident enough to believe in using it for large transaction. It supposed to only be used only for low amount of coins.

Another down side of the lightning network is how to use it. It is not easy to setup for use like normal bitcoin wallets unless you use a simpler wallet for it, like the wallet of satoshi.

On Lightning, the funding transaction spends some Bitcoin UTXO, creating a multisignature UTXO to open the channel. Once the bitcoin is locked within that channel, portions of it can be sent back and forth within the channel, without the need to create any change. This is because the channel partners simply update the channel balance and only create a new UTXO when the channel is eventually closed using the channel closing transaction.

 Mining Fees Versus Routing Fees
On the Bitcoin network, users pay fees to miners to have their transactions included in a block. These fees are paid to the miner who mines that particular block. The amount of the fee is based on the size of the transaction in bytes that the transaction is using in a block, as well as how quickly the user wants that transaction mined. Because miners will typically mine the most profitable transactions first, a user who wants their transaction mined immediately will pay a higher fee per byte, while a user who is not in a hurry will pay a lower fee per byte.

On the Lightning Network, users pay fees to other (intermediary node) users to route payments through their channels. To route a payment, an intermediary node will have to move funds in two or more channels they own, as well as transmit the data for the sender’s payment.Mining Fees Versus Routing Fees
On the Bitcoin network, users pay fees to miners to have their transactions included in a block. These fees are paid to the miner who mines that particular block. The amount of the fee is based on the size of the transaction in bytes that the transaction is using in a block, as well as how quickly the user wants that transaction mined. Because miners will typically mine the most profitable transactions first, a user who wants their transaction mined immediately will pay a higher fee per byte, while a user who is not in a hurry will pay a lower fee per byte.

On the Lightning Network, users pay fees to other (intermediary node) users to route payments through their channels. To route a payment, an intermediary node will have to move funds in two or more channels they own, as well as transmit the data for the sender’s payment.