Lightning's network is a decentralized system that goes hand-in-hand with Blokshin Bitcoin in an attempt to lower transaction fees and make them faster and raise the possibility of Pitcairn to handle higher volumes. This system will be important to maintain the competitive capacity of the future, because some new digital currencies are being made with these features. For example, Ripple, Stellar and Nano offer near-instantaneous trades that can be expanded and developed without actual cost.
What did Bitcoin speak now?
With the increasing popularity and popularity of digital currencies, the Bitcoin network has seen a significant increase in volume. All additional users have resulted in a reduction, fees and transaction times. From the beginning of 2009 to the end of 2016, the transaction cost was usually less than 20 cents and was completed in about 10-30 minutes. These figures rose in 2017; average trading costs in December were over $ 20, and were $ 55 per transaction - about 275 times the previous year's fee. Similarly, the transaction fee increased by an average of 60 minutes, and the highest duration was about 4+ hours when the network was congested.
This increase in charge and time is due to the way the Bitcoin network currently operates. Plucheen has been designed by Bitcoin from groups of transactions that are called "block" or blocks. The new block is mined almost every 10 minutes and then added to the buccaneer, which will result in keeping the transactions on each block permanently. The size of each block is equal to 1 MB, while the size of one transaction is about 500 bytes, which means that only about 2000 transactions can be processed every 10 minutes. Because of this, the demand greatly exceeds the processing speed. To ensure that the two metals have chosen to list your transaction within the next block you can pay them, hence the trading fees. As competition increases, these fees are increasing, leading to a significant increase in December.
If Bitcoin wanted to continue to thrive, it had to be able to deal with larger volumes of transactions and faster - hence the idea of Lightening.
How will Lightening solve these problems?
Since the Bitcoin network is limited in the number of transactions it can process per block. The Lightening network plans to make transactions less costly and faster through their transport of the plocin. In fact, the balksin does not need to know the details of each transaction performed, but you must know the change in each account balance. Using this idea, Lightening can pool a huge number of Pitcairn payments in a few transactions. Lightening is already an enormous network of remote payment channels from the plocin. When you choose to opt in to Lightening users, it will create at least one channel (link) with another user. When you want to send Bitcoin , money will move through these payment channels until you reach the recipient. For users, payment using Lightening is no different from payment through a series of transactions.
Utilizing this vast network of payment channels, Lightening can transfer money almost immediately and at minimal cost. Since an unlimited number of channels can be configured, it is an endless network. This means that Bitquin will eventually be able to handle large volumes of transactions per second, making it a viable alternative to credit card transactions in retail environments. If lightening is to continue, Bitcoin will remain the dominant and operational currency in the future.