Do you think blockchain is too slow? That Bitcoin payments take too long? That era is now over — discover Bitcoin’s new network: the Lightning Network.
What is the Lightning Network?
Bitcoin is a currency that has become very popular! You hear about it every day, but like all cryptocurrencies that use blockchain, it has one major flaw: transactions are very slow. If you wanted to make a Bitcoin transaction today, the money would only reach its destination after several hours.
The Lightning Network would therefore be a complementary solution to the blockchain, one that would speed up the Bitcoin transaction process and also reduce transaction fees.
So how does it work? The idea is very simple: transactions will take place through payment channels, and the opening of those channels will be recorded on the blockchain. These channels will then be used to carry out transactions instantly. The only times the blockchain will be called upon are to open and close channels.
And from the user’s point of view? Nothing will change. An ordinary user will simply have to scan the QR code containing a recipient’s Bitcoin address in order to make their transaction. The difference will be the transfer time and the near-absence of transaction fees.
Who is behind this new network?
It was to be expected: Blockstream (the largest American start-up specialising in blockchain technology) has been running tests on the Lightning Network since 2015. But there is also a French company in the mix: ACINQ, which is developing an electronic wallet compatible with the Lightning Network. There is also Lightning Labs, which has claimed credit for creating this network, and finally the Massachusetts Institute of Technology (MIT).
Even though several payments have already been made via the Lightning Network, the four main players behind the new Bitcoin network have announced that it would be available “during 2018” without giving a specific date.
We will be sure to keep you informed of the project’s progress! In the meantime, head over to the Numendo blog to discover all of our articles.
