Lightning Network

What Is the Lightning Network?

The Lightning Network is a payment protocol that operates on top of the Bitcoin blockchain. It enables fast, secure and low-cost transactions between two parties without having to wait for confirmations from the main blockchain. The network consists of nodes which are connected by channels, allowing users to send payments directly to each other without broadcasting their transaction data onto the public ledger. This allows for faster processing times and lower fees than traditional Bitcoin transactions.

The Lightning Network also provides an additional layer of security as it does not require trust in third parties or intermediaries like banks or exchanges. Transactions occur off-chain so they do not need to be broadcasted publicly, making them more private and secure than regular Bitcoin transactions. Additionally, because all funds are held in multi-signature wallets with both parties’ signatures required before any money can be moved, there is no risk of one party defaulting on their end of the agreement.

See also  Oracles

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