Know about lightening network

The Lightning Network is legal off the blockchain that helps keep transactions recorded for Bitcoin, and was built to keep Bitcoin gas fees low and faster. We can call it a layer 2 scaling solution for the Bitcoin blockchain. To help you understand better, I would like to discuss a little bit about Bitcoin. You should know that the bitcoin blockchain saw is designed to process only 7 transactions for a few seconds and this makes the network very congested and the transaction fees are very high because people will have to bid before their transaction is processed . There is a big difference when comparing the amount of transactions Bitcoin can process per second to what Visa can process per second. Bitcoin processes 7 transactions per second, while Visa can process 50,000 transactions per second. The speed of Visa transactions is undoubtedly one of the main reasons why many businesses use it.

Let me explain more about how the Lightning Network works. The first explanation is that suppose you are going out with your friend to have a good time and you bought a $5 drink and paid for it in bitcoins and the bitcoin transaction fee was $15. You purchased a drink 5 times and each time you bought a drink you paid a transaction fee. That means you'd pay $75 in transaction fees, while your drink total would be $25. Your transaction fee was much higher than the drinks you purchased. You're smarter now, come back a day later with the same drink, but this time record the drink you bought at the register to pay for it all together. This example shows how the lighting network processes its transaction.

The main idea behind the Bitcoin Lightning Network is to prevent very high transaction fees and slow transaction fees. So what the light network does is you give them your bitcoins and they will keep a record of the amount of bitcoins you have, you can get your bitcoins back whenever you need your real bitcoin and they will evaluate their record and send you the amount of bitcoins you have. This means you only pay the network once and they only pay you once. Basically it's just you depositing your asset into a certain wallet that has many signatures and you make all your payments in that wallet. Because this is a payment channel and many other people can send your payment back and forth. You can choose to settle this payment channel, when you and others do, you can choose to complete the transaction.

You might think that if you don't pay to create a payment channel, whenever you want to use it. The way out is that you can already available payment channel created by other people. For example, you want to send a payment to a friend for a service he provided, and you both don't have a payment channel, but two of you have a Binance exchange payment channel. You can tell Lighting Network to help you direct your $50 payment to your Binance friend. Lighting Network is a great solution for scaling as it can scale up to a million transactions.