It has always been a matter of discussion about Bitcoin whether it can become a practical and scalable payment system. Over time, the increasing popularity of Bitcoin exposed the limit of network. Issues such as transaction speed, high fees and high energy usures made Bitcoin’s blockchain slow and expensive. To solve these problems, Bitcoin Lightning Community was developed. It is a 2nd Layer Answer, which helps to score the functionality of Bitcoin and makes transactions fast, affordable and effective.
In this blog, we will know what is Bitcoin Lightning Community, how it works, what are its benefits and what are some of its risks.
Introduction to Bitcoin Lightning Community
Bitcoin Lightning Community is a 2nd Layer Answer, which runs above the Bitcoin Community. It uses micropament channels, which increase the scalability and transaction speed of bitcoin. It mainly enables the network of-chain transactions, lowering the load on the main blockchain and the transactions are fasted.
In this, parties open a channel and send funds to it, without every transaction, the need to do transactions on the main network. Once the channel is closed, all the transactions are recorded on the main blockchain.
History and development of Bitcoin Lightning Community
The concept of Lightning Community was presented by Joseph Poon and Thaddeus Dryja in 2016. The main objective behind which was to solve the problems of slow transaction speed, high cost and high energy consumption of bitcoin.
Its design was to generate a system that could make fast and affordable payment without loading on the main network of Bitcoin. As long as a channel is open, parties can exchange payment as per their needs. All these transactions are recorded on the main blockchain when a channel is closed. If you want to know that What is bitcoinSo you can read our article related to it.
Benefits of Lightning Community
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Fast transaction: Through Lightning Community, bitcoin transactions are very fast, as these transactions are not verified on the first network. This means that users are saved from long wait.
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Affordable transactions: Since Lightning Community uses off-chain transactions, transactions done through it have low fees. This is a way to reduce Bitcoin’s high transaction fees.
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Scalability: Lightning Community is a great solution to solve the problem of scalability of Bitcoin Community. This reduces the load on the network, making it easier to process large -scale transactions.
How does Lightning Community work?
The way to work as a lightning community is that two parties open a payment channel. In this channel, she keeps her deposited amount and can do transactions with each other without any interruption. When both sides are satisfied in transactions, the channel is closed and the transaction is recorded on the main communication of Bitcoin.
It uses smart contracts and multi-cignhes, which ensures that the amount sent to reach the right person. Subsequently, when the channel is closed, complete information about the transaction is submitted on Bitcoin Blockchain.
Risk and problems related to lightning community
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Closed -channel fraud: A major risk of Lightning Community Closed -channel fraud Is. In this, a party can cheat while closing the channel, such as broadcast the old state and withdraw money twice. Third party “Watchtower” is used to prevent this.
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Charges: Although lightning community reduces fees, it may have some hidden fees, such as routing fees, channel opening and closing fees and bitcoin network transaction fees. If you live Bitcoin Worth If you want to go about, you can click on the link.
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Hacking and malware: Since the process of lightning communication is off-chain, there is a risk of cyber attack on its payment channels, wallets and APIs.
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CONGESTION and Denial of Carrier Assaults: If there are attacks on network and channels are filled with traffic, then there may be a delay in return of funds, which can cause deadlock in the network.
Future and possibilities for Bitcoin Lightning Community
The future of Bitcoin Lightning Community looks bright as it offers a great solution to Bitcoin to create a practical and scalable payment system. With its help, bitcoin can be adopted in mainstream. However, it is necessary to solve its technical and security related issues, so that it can be safe and effective for all users.
Conclusion
Bitcoin Lightning Community, Bitcoin is an effective way to present a solution to the problems of communication. It facilitates fast, affordable and scalable transactions. Although it has some risks, but with its development and improvement, it can become an important technical solution for the use of Bitcoin in future and enterprises.
