Let’s talk about the Lightning Network.
Once a channel is open, payments between the two parties are simply exchanges of signed records showing the latest balance. There’s no need to put every payment on-chain, so they’re settled almost instantly.
To be honest, I only learned this later: when depositing Bitcoin to an exchange, check whether you’ve selected on-chain or Lightning Network. The two use different receiving formats, so don’t mix them up.
The $BTC circulating on the Lightning Network is the same, but most payments don’t need to be recorded on-chain individually.
Every return comes with a corresponding risk. Think carefully about how much you could lose in the worst case.
Once a channel is open, payments between the two parties are simply exchanges of signed records showing the latest balance. There’s no need to put every payment on-chain, so they’re settled almost instantly.
To be honest, I only learned this later: when depositing Bitcoin to an exchange, check whether you’ve selected on-chain or Lightning Network. The two use different receiving formats, so don’t mix them up.
The $BTC circulating on the Lightning Network is the same, but most payments don’t need to be recorded on-chain individually.
Every return comes with a corresponding risk. Think carefully about how much you could lose in the worst case.
