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Everything you need to know about Lightning Network (LN)


Public ledgers are valuable because they are self-auditing. However, doing so means sacrificing speed for decentralization and security.

The more decentralized a network is, the more robust it is.

As such, decentralization tags scalability troubles. This explains why Bitcoin can only process 7 TPS while Visa does over 2k TPS.

From low processing speeds, the network also becomes more expensive. 

Yes, Bitcoin users can sometimes pay up to $30 per transaction—unreasonable, right?

But Bitcoin developers are trying to find a way out to enhance scalability and drastically chop down fees.

The Lightning Network (LN) is one means.

LN is a layer-2 payment layer on Bitcoin and Litecoin networks.

That means, through LN channels, people can send transactions between each other without paying fees. In addition, because they are 'off-chain,' thousands of transactions can be processed at a go. 

LN tests show that these channels can process one million transactions every second. So, for a layman, LN is a solution that will allow users to pay for coffee using BTC because of immediate settlement.

Accordingly, if LN is widely adopted, the Litecoin and Bitcoin networks would be rapidly scaled.

For more interesting tips and facts visit our Education Centre.


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