Lightning network and Bitcoin

Bitcoin Overview

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. It was created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Lightning network

Lightning Network is a second-layer payment protocol on top of the Bitcoin blockchain, designed to enable fast, low-cost, off-chain transactions between users. It uses a network of bidirectional payment channels to enable the rapid, trustless, and low-cost exchange of funds without the need for on-chain transactions. This can help alleviate the scalability issues faced by the Bitcoin blockchain, as well as lower the cost and increase the speed of transactions. Lightning Network is still in the development stage, but it holds promise as a solution for scaling Bitcoin for widespread use as a payment system.

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