UPDATE 012618 - ALMOST at 100 NODES!!! LN stakers are risking their own coin to give birth to the future of bitcoin transaction, an amazing group of pioneers for the blockchain communitys. - Alex
WORKING GUIDE TO THE LIGHTNING NETWORK
The Lightning Network Explained (Litecoin/Bitcoin)
Lightning.network ● Sources -https://docs.google.com/document/d/1aABBE_zhTQLZHmqeX11RpmXnvinmPLAsvfPQXQfD0EU/edit?usp=sharing ♫ Music: Blue in Green - Rainy ...
The Lightning Network can process thousands or even millions of micro transactions per second. It works by opening up a payment channel between two address and creating a multisignature addresss, or 'safe', of funds between those two entities.
The multi-sig address then acts as sort of a referee of transactions off of the blockchain, until the channel is opened and broadcsat.
They can make as many transactions as they want before broadcasting the open channel to the rest of the bitcoin mining nodes on the network.
You are probably thinking about how many channels would need to be opened up between consumers and vendors in order to take advantage of LN.
No worries, you can actually use others on the LN who have already created an active payment channel with that vendor.
So as long as I channel has been made with a vendor on the LN, everyone on the LN can access - a beautiful new reality for instantaneous cross border transactions.
"There are already 29 insanely brave nodes running Lightning Network on #Bitcoin mainnet. Exciting times!"
As word of their paper spread, blockchain enthusiasts started hashing out its technical details in blogs and on social media. Around the world, engineers began trying to turn the ideas in Poon and Dryja’s paper into working code. “It was the second most exciting paper I had read in the blockchain era,” says Rusty Russell, a developer at Blockstream, a blockchain technology company. “The first was Satoshi’s.”
⚡️ Cross-Implementation Lightning Payment on Bitcoin's Mainnet ⚡️
In this video Laolu (co-founder of Lightning Labs) demonstrates a multi-hop payment on Bitcoin's mainnet which travels across the 3 major Lightning implement...