Bitcoin's Lightning Network

Bitcoin has a 7 transactions/second limit, far too low for becoming a major payment provider (VISA handles on average around 4000 transactions/second). So how can we solve this?

One of the proposed solutions is by using the Lightning network. This reduces the load on the main blockchain by letting small transactions happen off-chain. By using this network, you directly exchange money with a counterparty, without hitting the main blockchain. Scalability through this system is virtually limitless.

Sources

Visa Inc. Facts & Figures. (2017). VISA Inc. Retrieved from https://usa.visa.com/dam/VCOM/global/about-visa/documents/visa-facts-figures-jan-2017.pdf

Scalability. Bitcoin Wiki. Retrieved from https://en.bitcoin.it/wiki/Scalability

Torpey, K. (2015). A Simple Explanation of the Lightning Network. Retrieved from https://coinjournal.net/a-simple-explanation-of-the-lightning-network/

Hertig, A. (2017). Lightning Can Scale Bitcoin, But Are Costs a Barrier? Retrieved from https://www.coindesk.com/will-bitcoins-lightning-network-used/

Fyookball, J. (2017). Mathematical Proof That the Lightning Network Cannot Be a Decentralized Bitcoin Scaling Solution. Retrieved from https://medium.com/@jonaldfyookball/mathematical-proof-that-the-lightning-network-cannot-be-a-decentralized-bitcoin-scaling-solution-1b8147650800

Nadeem, S. (2017). What You Need to Know About the Future of Bitcoin Technology. Retrieved from https://medium.freecodecamp.org/future-of-bitcoin-cc6936ba0b99

A Primer to The Lightning Network (Part 1). (2017). ecurrencyhodler. Retrieved from https://medium.com/the-litecoin-school-of-crypto/a-primer-to-the-lightning-network-part-1-be909c403bde

Multisignature. Bitcoin Wiki. Retrieved from https://en.bitcoin.it/wiki/Multisignature#Multisignature_Wallets

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