Finally a blockchain with faster transaction time then Visa: The Lightening Network
Today as I mentally processed my recent research into side chain development, and specific side chains like the Bitcoin side chain The Bitcoin Lightning Network and the side chain of the Binance Main Blockchain, the Binance Smart Chain I smiled as I realize that we may have reached another milestone in the development of the blockchain. We have a blockchain with a greater transaction per second capacity then Visa, one of the most prominent financial transaction companies in the world. I think we should all pause and acknowledge this moment as an important milestone in the history of cryptocurrency and commerce on the blockchain.
Second we should also acknowledge another important milestone for the Bitcoin Lightening Network, micro-transactions. This is important because transactions on the Bitcoin Network cost Bitcoin. This made micro-transactions impossible as the fees exceeded any profit. But the Bitcoin Lightening Network creates micro transaction fees. So now micro transactions can be profitable. This is important because Micro transactions aren’t possible on the Visa Network
This means there is a whole niche of commercial transactions involving Micro transactions that can only be done on The Bitcoin side chain Lightening.
Deep breath*
Consider that there are more poor people in the world then rich, there are more small commercial transactions then large and there are potentially more Micro transactions then Macro transactions.
I believe that Innovations such as these are the pathway forward to mass adoption.
Why should you care?
We already have a:
Sidechain
Zero transaction fees
Micro transactions
The source code for Lightening is Open Source.
I hope the wheels are turning in your head about placing Micro transactional capability in businesses with micro transactions to make them profitable, creating a demand and increasing awareness of Hive.
We have the tools, now members of the community just need to research, study and develop.
The future of decentralized finance is here.
✍️ By Shortsegments.
Footnotes
The following information on the Bitcoin Lightening Network Is derived from Blockstream the digital technology company, which specializes in side chains, and helped develop the Bitcoin side chain The Bitcoin Lightening Network.
Lightning Network
The Lightning Network is a micropayments protocol that enables instant, low-cost Bitcoin transactions. Blockstream is a major contributor to this exciting technology alongside other industry leaders and independent developers.
The Lightning Network is a new protocol layer built on top of Bitcoin. It uses cutting-edge smart contracting to achieve faster-than-VISA transaction throughput, while retaining the peer-to-peer nature of the Bitcoin protocol.
The Lightning Network enable faster, cheaper Bitcoin payments, and it opens up a world of microtransaction use-cases that are not possible within the traditional financial system.
The Lightning Network reduces Bitcoin transaction times and fees.
This is achieved by reducing the number of transactions that need to be forever stored on the blockchain. Instead, funds are held in smart contract “payment channels,” and transactions are exchanged outside of the blockchain between transacting users. The final state of the payment channel balance can be broadcast to the Bitcoin network at any time, securely settling the funds on the blockchain.
Microtransactions
Lightning makes secure global microtransactions a reality. New digital business models will become possible for the first time, from the sale of digital goods to on-demand access to online services. For more ideas, take a look at some of the Lightning Applications (LApps) we’ve built.
Privacy
Transactions on Lightning are not recorded on the blockchain and are shared using onion routing by default, which provides users with a more private way of transacting bitcoin compared with standard Bitcoin transactions.
The future is now and happening all around us.