What is Red Lightning?

What is the Lightning Network or pay channel network?

The Lightning Network protocol is a protocol designed to improve the scalability of Bitcoin. This is possible because Lightning Network works as a second layer on top of Bitcoin.

a decentralized organization for moment and high-volume miniature installments that wipes out the gamble of assigning the guardianship of assets to confided in outsiders.

In the Lightning organization, installments don't need block affirmations and are quick and atomic. The atomicity implies that installments will either be made or not: it isn't feasible for them to become lost despite any effort to the contrary if there should arise an occurrence of a disappointment. Also, it permits sending assets as little as 1 satoshi, or 0.00000001 BTC, without care risk and insignificant charges. Lightning network exchanges are completed outside the blockchain on a fundamental level, without appointment of trust and proprietorship, permitting clients to make practically limitless exchanges with one another.

Payment Channels?

A payment channel is a means of transaction outside the blockchain, where two people commit funds in one direction and pay each other by issuing payment commitments signed by the parties, avoiding having to wait for confirmations from the underlying blockchain.

Revocable Sequence Maturity Agreement (ERMC)

which is the official contract in the payment channels.

contains the following legal notice:

All parties pay into a contract with an outcome that enforces this contract.

Both parties can agree to send funds to some contract, with some waiting period (1,000 confirmations, for example). This is the revocable outgoing balance.

One or both parties may choose not to defer (force) payments until a future date; either party may redeem the funds after the waiting period at any time.

If neither party has deferred this transaction (redeemed the funds), they may revoke the previous payment if, and only if, both parties agree to do so by placing a new payment installment in a substitute payment transaction. The new transaction payment can be redeemed immediately after the contract is disclosed to the world (transmitted to the blockchain).

In case the contract is disclosed and the new payment structure is not redeemed, either party can redeem the previously revoked payment terms (so it is the responsibility of either party to enforce the new terms).

Lightning Network

Lightning Network is formed, then, when there are two or more payment channels created with a common user between them. In this way, one user can send money to another outside their payment channel using the common connections to do so. This is possible through the use of hash locked time contracts (HLTC).

its developers say "The Lightning network that already allows exchanging the value that Bitcoin reached in its 3 years of life"

Taking care of the Bitcoin versatility issue is no simple assignment. This issue has consumed most of the day of innovative work, however in any case, the arrangement could as of now accompany us. Its name is Lightning Network and it could take Bitcoin to the zenith of versatility to adapt to the massification of digital forms of money.

The Lightning Network convention is a convention intended to work on the versatility of Bitcoin. This is conceivable on the grounds that Lightning Network functions as a second layer on top of Bitcoin. One that permits this digital currency to do things it ordinarily couldn't and all the more explicitly; moment exchanges and with exceptionally low charges. The advancement of this convention started with crafted by Joseph Poon and Thaddeus Dryja. However, today it is organizations, for example, Blockstream, Lightning Labs and ACINQ that are driving the advancement of this convention. The whitepaper on this improvement can be found at this connection on their primary site.

To comprehend the capability of this innovation, there are two things to remember. The first is that Bitcoin was made as an advanced cash arrangement. The second is that this objective is difficult to accomplish in the present status of the Bitcoin organization and programming. The justification behind this is extremely basic: Bitcoin experiences difficulty scaling.