What Is Lightning Network?
Scalability is still the biggest problem for Bitcoin since it was first proposed in 2008, which means it has only been capable of processing around 7 transactions per second, far less than traditional financial systems. Meanwhile, waiting for 6 blocks' validation takes about 1hour to confirm transition. One of the proposed solutions to solve the scalability of Bitcoin is Lightning Network, which was proposed by Joseph Poon and Thaddeus Dryja in February 2015. What Is Lightning Network? The Lightning Network is a "layer 2" payment protocol designed to be layered on top of a Bitcoin network, which makes transactions be done between parties off of the blockchain(off-chain transaction). Generally, Bitcoin transactions are on-chain transactions that using blockchain technology. They are essentially a shared database in which its distributed ledger allows participants to see all of the transactions that have been recorded. On the contrary, the Lightning Network adds another l...