Yard News 📰🇯🇲 on Nostr: 💡 Today's Concept: Lightning Network Imagine you're using a traditional postal ...

💡 Today's Concept: Lightning Network

Imagine you're using a traditional postal service for sending letters. Each letter takes time and costs money. The Lightning Network acts like an express internal mail system within your office where messages (or payments) can be exchanged instantly and cheaply without going through the main postal service every time. Only when you need to send or receive something outside the office, do you use the external postal service.

The Lightning Network is built on top of Bitcoin. It allows users to create private payment channels between each other so that they can transact quickly and with minimal fees. The only times a transaction touches the main Bitcoin network are at the start (opening) and end (closing) of these channels, making most transactions nearly instant.

This matters because it solves some key issues like slow transaction times and high fees on the main Bitcoin network, making it much easier for everyday use cases such as buying coffee or paying for a quick service online.

#BitcoinEd #LightningNetwork

https://en.wikipedia.org/wiki/Lightning_Network