Lightning Network Explained | Ivan on Tech
Welcome to this episode of Ivan on Tech. In this episode you will hear Ivan discuss Lightning Network. Stellar's Lightning Network is a off-chain layer 2 solution for the Bitcoin Blockchain. Bitcoin scaling solutions There are a few options available for scaling the Bitcoin Blockchain.
- On chain solution is to create bigger block-sizes
- Issue here is bandwidth, it would be difficult if not impossible to get a gigabit size block across the entire network. This would create future centralization as only a few nodes would be able to accomplish this.
- Off chain SQL commonly known as balance
- Issue here is that their is a centralized point of failure and also censorship. Because centralized exchanges have control over the transactions and hold onto users private keys they ultimately have control.
- Off chain layer 2 such as Lightning Network
- There is no way to censor, there is no way to double spend, and there is no single point of failure. Lightning network incentives users ($) to connect nodes together to strengthen the network. There is no Bitcoin hard fork required for Lightning Network.
Lightning Network Visualized (2d earth map view)