Crypto 101 📚 Lightning Network
Two users first lock bitcoin into a jointly controlled 2-of-2 multisig address with an on-chain transaction, opening a payment channel.
Once the channel is open, payments between them simply involve exchanging signed records of the latest balance. Each payment doesn’t need to be recorded on-chain, so they’re settled almost instantly.
The first page of my study notes says: understand it before placing an order.
What circulates on the Lightning Network is also $BTC , but most payments don’t need to be recorded on-chain individually.
Two users first lock bitcoin into a jointly controlled 2-of-2 multisig address with an on-chain transaction, opening a payment channel.
Once the channel is open, payments between them simply involve exchanging signed records of the latest balance. Each payment doesn’t need to be recorded on-chain, so they’re settled almost instantly.
The first page of my study notes says: understand it before placing an order.
What circulates on the Lightning Network is also $BTC , but most payments don’t need to be recorded on-chain individually.
