Bitcoin Scalability: How Does The Lighting Network Work?

The Bitcoin scalability is a well discussed topic nowadays for many traders, investors and BTC backers. If you are rubbing shoulders with crypto fanatics, you probably know that the entire scalability is based on the Lighting Network. Below, we are talking more about it.

Bitcoin was introduced to the crypto world in 2009 as the new digital money. More people became attracted to it and started to invest and use Bitcoin. This led to slowing down the network and making it more expensive which means a lot of costs started to occur with the simple using of Bitcoin. This is why it was work on a new project called the Lightning network. You can read a lot more information about the Lightning network here.

The lightning network work by creating payment channels between the bitcoin users. In these channels, transactions will be sent without having to wait as you would without this network. All of the transactions are recorded and kept without finalizing them and later it sends information containing only the final balances of the channel as a regular transaction, closing the channel at the end.

This will bring to an information drop that the current Bitcoin network has to process. All the real bitcoin transactions are not secured in part of the blockchain except the first one and the last entry. All payment channels are connected and transactions are circulating through the existing channels instead of creating new ones which will not be efficient and will not solve the current problem that bitcoin has.

A huge amount of Bitcoin transactions will be processed without having to pressure the entire blockchain. Ultimately, the new Lightning network will bring less traffic on the blockchain and lower fees.