8.1 The Lightning Network
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
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