Let's understand bitcoin lightning network in under 2 minutes

Lightning network is a layer 2 on top of the BTC blockchain.

Let's understand this with an example.

Suppose A wants to send Bitcoin to B using the Lightning Network. Let's assume A has 10 BTC and B also has 10 BTC. So, that means total balance would be 20 BTC.

Now A and B create a channel to be able to send BTC to each other. A can send as much BTC to B as they want, provided the transaction doesn’t exceed the balance put in.That means If 3 BTC was sent to B, A would then be left with 7 and B would have 13. They can keep doing this as long as they want, but as soon as they decide they are done making transactions, the channel will be published and the BTC main chain will be updated.

With a layer 2 on top of existing BTC blockchain the lightning network can speed up transactions and with minimum network fees.It is like having your private road to drive a vehicle.The bitcoin lightning network has its own nodes and software that communicate with the main blockchain through mini-ledgers called channels. It can be a new payment model for content creators. There can be lot of daily use cases where bitcoin lightning network can be implemented. It is best for family and friends or shopping.Comparing this to the main chain, it’s easy to see that Lightning can change the way people use BTC