What is the Bitcoin Lightning Network? Why is it important? Let’s find out!
Crypto is on the run!
Cryptocurrency is quickly becoming the currency of the future and has no shortage of new approaches and use-cases. With Bitcoin breaking $40,000 and surges of volume moving into the market, it’s no wonder more and more people are starting to talk about it.
Faith in the stock market is falling
Not to mention, the trust in stock markets and the big fish who swim there is steadily dwindling, even more so after the most recent events involving Gamestop and AMC stocks, along with several others.
How does Bitcoin survive?
So how does Bitcoin continue maintaining its hold as the #1 cryptocurrency, even though it fails to scale nearly as well as many other lower priced coins? The answer may be in the new Lightning Network implemented as a 2nd layer protocol riding on the Bitcoin blockchain itself. Comprised of scripts called “Smart Contracts”, users creating transactions on the Lightning Network can send and receive Bitcoin much quicker and for much lower fees.
How does the Network work?
The network itself relies on yet another decentralized approach of creating nodes hosted by individuals running the proper software to conduct transactions. These nodes are connected to other nodes, creating a “path” from one user to another, much like when an internet network transmits information.
It’s not perfect, but…
While the Lightning Network does have some flaws, which you can read about HERE on Forbes, it does solve a lot of issues with future-proofing the Bitcoin blockchain as well as offering its userbase a better way to complete transactions.
To find out more about the Lighting Network, visit their main site at HERE.
Running a Lightning Network Node
We will be diving in on how to set up your own Lightning Network node, which not only contributes to the Lightning Network, making it more secure and faster but also offers some opportunity to earn a little income in the process. We’ll update this article with the link once it goes live. Until then, stay tuned for more Crypto info as we head into the future. Thanks for reading.