The Lightning Network is a proposed payment channel layer for Bitcoin. Basically it allows for cheap transactions, typically small recurring payments, to occur. It is for scalability as it essentially can compress hundreds of transactions into one or two. For example, say for recurring micropayments from a faucet to you, normally, you may receive hundreds of these, and each one requires a specific fee. Instead with lightning, you will still have hundreds of transactions, just that when you want to use that Bitcoin, only one of those hundreds actually ends up on the Bitcoin network and in the blockchain, thus removing hundreds of transactions from the blockchain and saving both you and the faucet hundreds of transactions worth of fees. It essentially tracks balances between two parties.
it will take all the fees generated by low value TX on each block, away from miners and move them to LN CEO.
There is no Lightning Network CEO. In fact, I don't think there are really any fees with Lightning if you use the payment channels. There may be some small fees if you do hops between channels because you have to pay the people you are hopping through.
@adamstgBit I do not think that is true really. Maybe I am thinking wrong. If you think about it, you make a single small transaction normally and it gets added to a block with transactions from other users. That block is solved and the fees are split amongst the miners in whatever system that pool uses. That block may have multiple fees in it, but the reward is for the block, not the number of transactions within that block. So, if all of your transactions are saved up and then broadcast as a single transaction, then there is really no difference is the block reward. The only difference is that your transaction are in one block and not in several. Each block processed when it hit its number, 25. The block that held your first transaction still went off with the same reward, just filled with your 1 transaction and many others from other people.
I am making this more complex than I meant. Now, correct me if I am wrong. There is a train and it will leave when 25 people are on it. That train will pay the conductor 10 dollars to leave the station. You have three people to transport and rather than paying a fee for each one, you wait until they all arrive and then ride on one train, one fee. The previous car left when it had 25 people and the conductor made his ten bucks. When all your people arrived you got on the next train and it left, ten bucks for the conductor. Still two trains, still 50 people moved and still twenty dollars total for the conductor. It did not matter whether your three were on one car or two cars.
The ticket master(the exchange) got ripped off because you bought one ticket for three people instead of two, but not the conductor(mining pool).
Am I right or wrong?
