What is the Lightning Network for BitCoin?

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What is the Lightning Network for BitCoin?

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Lightning Network, a technology which many hope will create the Bitcoin payment network considerably a lot more effective, is turning into a reality. Standards have been adopted, Lightning trades were demonstrated in early December, and late a week ago, the VPN service has touted what might have been the first purchase of physical products using Lightning. For many still trying to figure out just what Bitcoin itself is, knowing why Lightning matters can be tough. In the lightning is Bitcoins scaling challenge, which has retained it in fulfilling its promise of rapid, cheap money transmission. The hunt for an answer has resulted in major technical and personal schisms from the open source, democratically regulated project.

Lightning Network is regarded by most as the most promising long-term response into the scaling issue, though in ways it solves the issue by not solving it whatsoever. Blockchains such as Bitcoin is inherently inefficient, trading speed for decentralization, security and reach. To avoid fundamental challenge, Lightning conducts trades on private stations outside the primary network, then settles them into the key blockchain in batches. Making trades much faster and much cheaper, while keeping bulk of the security benefits of a blockchain. A simple way to consider it is that Lightning trades are equal to gold backed paper money, whilst the primary Bitcoin blockchain is the gold.

For the time being, only the very bold are taking that risk, and the various implementations of the protocol are officially still being tested. But even with a gradual rollout, theres expect that offloading a part of payments to Lightning will reduce load on that the primary Bitcoin system. Despite early adopter feedback which occasionally borders on euphoric, global cryptocurrency markets do not seem to have taken a lot notice of Lightnings progress. Since peaking and crashing from mid December, Bitcoins price has become in a gradual loss of length with most other cryptocurrencies.

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Lightning Network can help the Bitcoin, as well as Bitcoin forked cryptocurrencies (Litecoin can be spent anywhere Bitcoin is accepted) to be spent anywhere.

The lightning Network will increase Bitcoin’s potential as a currency that in turn will allow Bitcoin to be used anywhere not just to use Bitcoin as an asset. Microsoft and Subway started accepting Bitcoin as a payment ever since the Lightning Network rumours started.

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Here is an interesting video explaining the Lightning network for Bitcoin

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