Lightning Network

On top of Bitcoin, the Lightning Network is a “layer 2” payment technology. It has been suggested as a solution to the scalability issue with bitcoin and is designed to facilitate quick transactions between participating nodes.

Every layer adds functionality and completes the layer above it. The Lightning Network is a second layer for Bitcoin that scales the blockchain’s ability to handle transactions more effectively.

This layer comprises of many payment methods between parties or Bitcoin users. A Lightning Network channel is a method of communication between two parties. The parties can exchange payments through channels. Compared to transactions made directly on the Bitcoin blockchain, transactions made through the Lightning Network are quicker, cheaper, and easier to confirm.

Leave a Reply

Your email address will not be published. Required fields are marked *

© WazirX. All rights reserved

Scroll to Top