Technical principles | What is the Lightning Network, and why can it make instant payments?
Segregated Witness (SegWit) fixed the transaction malleability issue, which is one of the key prerequisites for the reliable operation of the Lightning Network.
The Lightning Network works by moving large numbers of small, frequent payments off-chain. Only opening and closing channels require on-chain transactions, which both reduces the load on the main chain and lowers fees.
The funds circulating on the Lightning Network are still $BTC ; it’s just that most payments don’t need to be recorded on-chain individually. Current: 81023.1.
Every potential return comes with a corresponding risk. Think about the worst-case scenario first.
#BTC
Segregated Witness (SegWit) fixed the transaction malleability issue, which is one of the key prerequisites for the reliable operation of the Lightning Network.
The Lightning Network works by moving large numbers of small, frequent payments off-chain. Only opening and closing channels require on-chain transactions, which both reduces the load on the main chain and lowers fees.
The funds circulating on the Lightning Network are still $BTC ; it’s just that most payments don’t need to be recorded on-chain individually. Current: 81023.1.
Every potential return comes with a corresponding risk. Think about the worst-case scenario first.
#BTC