• ISTANBUL12:56:03
  • NEW YORK7:48:06
  • LONDON12:47:17
  • MOSKOW15:47:33
  • TOKYO21:47:45

What is Lightning Network and How is it Work?

Lightning network is a payment protocol that is positioned in the bitcoin blockchain and can be applied in all cryptocurrencies. This protocol is designed to reduce network density and improve transaction quality over time. In a way, it is the product of the work carried out outside the chain to minimize the intensity created by the increasing number of transactions. In this way, people can make transactions quickly and micro-processes can be carried out easily.

As a result of this transfer process, which is created by a road outside the blockchain network, the transactions are not approved by the miner. Thus, fees are not paid for transactions that are not approved by the miner. In this way, microtransactions can be carried out easily and these transactions performed in a created channel are registered to the blockchain after completion.

Users who do not want to open channels between each other can be transferred using the channels configured by different people. Both parties must be online in transactions performed using the Lightning network. If one of the parties is offline, the transaction does not take place, unlike the transfers that take place in the blockchain. After the transfers are completed, the channel closed and the transactions saved to the blockchain in the same way. In this context, as long as the channel remains open and the parties are online, transactions can be carried out unlimitedly, but after closing, the transaction summaries are signed and published in the blockchain.

Thanks to the lightning network, the idea that crypto money will be transformed positively in the coming years and will increase the use of crypto money in the purchases made. Although the concept was developed with considering the difficulties experienced by bitcoin, all crypto money can benefit from the lightning network.