Bitcoin Lightning Network Definition, Meaning — TeraBlock

What is Lightning Network and how does it work?

It is where the lightning network comes in.

Let’s understand how a lightning network works.

The Anti-cheat Mechanism

Perks of the lightning network

  • Due to delayed verification time and high transaction fees, it is impractical to use Bitcoin for day-to-day uses. On the other hand, the lightning network’s low transaction cost and instant payment make it ideal for real-world uses.
  • Transaction fees of the lightning network can be as low as one Satoshi, which is the smallest unit of Bitcoin and is equivalent to a fraction of one cent.
  • Everyone can use the Lightning Network for smaller payments.

Some downsides of the lightning network

  • The Lightning Network is still in its early stages, and it still has a long way before becoming the go-to payment method for daily transactions.
  • You need to pay transaction opening and closing fees on Bitcoin’s network, which sometimes can be pretty high.
  • The transaction is possible only when all parties that are involved in the transaction are online.

Conclusion

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TeraBlock

TeraBlock

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Diversified one-stop Decentralised Finance (DeFi) gateway to enable the masses to benefit from the crypto revolution.https://terablock.com