Bitcoin School Kenya Diploma English Version 2024
  • PREFACE
  • Table of Content
  • Chapter 1: Why Do We Need Money?
    • 1.0 Introduction
    • 1.1 Why We Need Money
  • Chapter 2: What is Money?
    • 2.0 Introduction
    • 2.1 Definition of Money
    • 2.2 Why is Money Important?
    • 2.3 Functions of Money
    • 2.4 Properties of Money
    • 2.5 Types of Money
    • 2.6 The Psychology of Money
  • Chapter 3: The History of Money
    • 3.0 Introduction
    • 3.1 Evolution from Barter to Modern Currency
    • 3.2 Digital Currency Revolution
  • Chapter 4: What is Fiat Money and Who Controls it?
    • 4.0 Introduction
    • 4.1 Brief History of Fiat Money
    • 4.2 Advantages of Fiat Money
    • 4.3 Disadvantages of Fiat Money
    • 4.4 Commodity vs Fiat money
    • 4.5 Fractional Reserve Banking: A System Fueled by Debt
    • 4.6 Mechanism of Fractional Reserve Banking
    • 4.7 Impact on Money Supply and Debt
    • 4.8 Role of Central Banks
    • 4.9 Who Controls the Fiat System and Their Benefits
  • Chapter 5: How Fiat Problems Lead to Bitcoin
    • 5.0 Introduction
    • 5.1 Inflation
    • 5.2 Causes of Inflation
    • 5.3 Effects of inflation on purchasing power
    • 5.4 Global Debt Burden and Social Inequality
    • 5.5 Consequences of global debt
    • 5.6 Consequences of social inequality
    • 5.7 The Cypherpunks and Decentralization
    • 5.8 Key Cypherpunks
    • 5.9 Motivation for Decentralization
    • 5.10 An Orwellian Future
    • 5.11 Key Innovations by Cypherpunks
    • 5.12 Centralized vs Decentralized Systems
    • 5.13 Advantages of CBDCs
    • 5.14 Disadvantages of CBDCs
  • Chapter 6: An Introduction to Bitcoin
    • 6.0 Introduction
    • 6.1 How Does Bitcoin Work? A simplified overview
    • 6.2 Why Bitcoin Matters
    • 6.3 The Players of the Game in the Bitcoin Ecosystem
    • 6.4 Key Characteristics of Bitcoin
    • 6.5 Advantages of Bitcoin
    • 6.6 Bitcoin as Sound Money
    • 6.7 Bitcoin Self Custody
  • Chapter 7: How to Use Bitcoin
    • 7.0 Introduction
    • 7.1 Acquiring and Exchanging Bitcoin
    • 7.2 Peer-to-Peer In Person
    • 7.3 Peer-to-Peer Online
    • 7.4 Centralized Exchanges
    • 7.5 Introduction to Bitcoin Wallets
    • 7.6 Self-Custodial vs Custodial Wallets
    • 7.7 Different Types of Bitcoin Wallets
    • 7.8 Open Source vs. Closed Source
    • 7.9 Key Considerations When Choosing a Bitcoin Wallet
  • 7.10 Setting up a Mobile Bitcoin Wallet
  • 7.11 Receiving and Sending Transactions
  • 7.12 How a Bitcoin Transaction Works
  • 7.13 Saving in Bitcoin
  • 7.14 DYOR Don’t Trust, Verify
  • Chapter 8: Lightning Network and Advanced Usage
    • 8.0 Introduction
  • 8.1 The Lightning Network
  • 8.2 Different Types of Lightning Wallets
  • 8.3 Setting Up a Bitcoin Lightning Wallet
  • Chapter 9: An Introduction to the Technical Side of Bitcoin
    • 9.0 Introduction
  • 9.1 Characteristics of the Bitcoin Ledger
  • 9.2 Public and Private Keys: Security through Cryptography
  • 9.3 Sending a Bitcoin Transaction
  • 9.4 Key Concepts in Bitcoin's Technology
  • 9.5 Hashing Explanation
  • 9.6 The UTXO Model
  • 9.7 Acloser look at Bitcoin Nodes and Miners
  • Chapter 10: Why Bitcoin?
    • 10.1 Introduction
  • 10.2 Circular Economies and Bitcoin as a Medium of Exchange
  • 10.3 Bitcoin Circular Economy
  • THE END
    • Recommended Learning Resources on Bitcoin
  • Group 1
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8.1 The Lightning Network

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Last updated 8 months ago

Recognize the Evolution of Bitcoin

Objective: To understand how the Lightning Network enhances Bitcoin’s capabilities and scalability.

1. Background:

  • Purpose: The Lightning Network was developed to address Bitcoin’s scalability issues by enabling faster and cheaper transactions.

  • Mechanism: It operates as a second-layer solution that sits on top of the Bitcoin blockchain, allowing for off-chain transactions.

2. Advantages:

  • Speed: Transactions on the Lightning Network are nearly instantaneous.

  • Cost: Reduces transaction fees compared to on-chain Bitcoin transactions.

  • Scalability: Enables the Bitcoin network to handle a larger volume of transactions.

3. Resources:

  • Lightning Network Overview on Bitcoin.org

Official Lightning Network Website