What is the Lightning Network ⚡️ 💡
In this #Thread, learn about one of the best solutions built on the#Bitcoinnetwork 🧬
3 minute read 📚
Lightning Network is one of the solutions built on top of the #البيتكوين network
Its goal is to solve the problem of#bitcoinpayment speed and#highfees 💥
This is done by opening#paymentchannels between people to transfer their assets to each other without the need for the original#Blockchainnetwork.
Example 👇🏻👇🏻
Muhammad wants to send 1#Bitcointo Sarah
Muhammad has 2 Bitcoins and Sarah has 2 Bitcoins
Step 1️⃣
When the transfer is made, a joint wallet is opened for both parties and under the control of both parties, called#multi_signature_wallet🪪 via smart contracts, and the wallet is registered on the#mainblockchain 🌐
Step 2️⃣
A payment channel is opened between the two parties through which many payment operations can be made without the need for the main blockchain network - meaning Off-chain.
The balance is simply updated for each of them with the consent of both parties, and a smart contract is registered confirming that Muhammad’s balance has become 1 Bitcoin and Sarah’s balance has become 3 Bitcoin 🔥⚡️
Step 3️⃣
#Closing_the_channelAfter the end of payment operations between the two parties, the channel is closed and the balances of both parties are updated on the main blockchain network.