What is the Lightning Network?
Adekunle Joshua
The Lightning Network is a layer-2 built on top of Bitcoin, separate but interacting with it. It enables money transfer without blockchain verification
Like Visa and Mastercard, it offers quick verification before settling transactions, which may take days or weeks
The Lightning Network uses nodes and QR codes for fast, cost-effective transactions
Joseph Poon and Thaddeus Dryja formalized the Lightning Network in 2016, addressing Bitcoin's scalability without altering the network
Lightning Labs and others launched the Lightning Network in March 2018, with Jack Dorsey's support
Lightning Network is a second-layer solution outside the Bitcoin blockchain, utilizing peer-to-peer channels for payments
Nodes on the Lightning Network are run by individuals or corporations, ensuring decentralization. Bitcoin is locked in channels for spending
Payments are received through QR code invoices, confirmed with a digital signature using a Lightning Wallet.