Lightning Network (LN) is a second layer solution for the Bitcoin blockchain. It is a network of payment channels between users. Is open source software.
The Lightning Network consists of nodes and bidirectional payment channels. The payment channel is established between two network nodes. Each of the two payment channel nodes contributes a certain amount of funds to the channel through a transaction on the blockchain. Subsequently, the channel capacity is the sum of the funds contributed by the nodes.
The project is designed to scale Bitcoin and can offer faster and cheaper transactions of the first cryptocurrency than the base mainnet. The fee for an LN transfer is 1 satoshi (0,00000001 BTC).
The project has been criticized for insufficient economic incentives to maintain the network and lower user anonymity compared to the Bitcoin blockchain.
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