RE: Bitcoin's Lightning Network - How Does It Work and How to Test It

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Bitcoin's Lightning Network - How Does It Work and How to Test It

in bitcoin •  7 years ago 

I recently saw a YouTube video attempting to illustrate the Lightning Network. A lot of folks had a problem with the idea of an added later atop the blockchain. I’m not a very well versed in the nuts and bolts of the Bitcoin blockchain but didn’t anyone foresee this problem early on?

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Thanks Din. Lightning still uses on chain transactions. An on-chain transaction is used to set aside funds for use on Lightning (like moving savings to a checking account) and the final balance for the chanel is eventually settled on the chain too.

I'm not really sure why people have an issue with it. It's completely voluntary - you don't have to use it if you don't want to. Everyone should benefit though (even those that don't use it) because it takes traffic off the chain, reducing the mempool and reducing fees.

Great clarification @inthearena