{"id":426777,"date":"2022-04-04T16:00:06","date_gmt":"2022-04-04T13:00:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/"},"modified":"2022-04-04T16:00:06","modified_gmt":"2022-04-04T13:00:06","slug":"what-is-bitcoins-lightning-network-and-how-do-you-use-it","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/","title":{"rendered":"#What Is Bitcoin\u2019s Lightning Network, and How Do You Use It?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e8f1a9a99f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e8f1a9a99f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/#%E2%80%9CWhat_Is_Bitcoins_Lightning_Network_and_How_Do_You_Use_It%E2%80%9D\" >&#8220;What Is Bitcoin\u2019s Lightning Network, and How Do You Use It?&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/#The_Problem_With_Bitcoin\" >The Problem With Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/#Bitcoins_Hope\" >Bitcoin\u2019s Hope<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/#The_Lightning_Network\" >The Lightning Network<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/#A_Real-World_Example_of_Lightning_in_Action\" >A Real-World Example of Lightning in Action<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CWhat_Is_Bitcoins_Lightning_Network_and_How_Do_You_Use_It%E2%80%9D\"><\/span>&#8220;What Is Bitcoin\u2019s Lightning Network, and How Do You Use It?&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<figure style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"type:primaryImage wp-image-795380 size-full\" data-pagespeed-lazy-srcset=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/03\/shutterstock_1940879785.png?width=398&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 400w, https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/03\/shutterstock_1940879785.png?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 1200w\" sizes=\"auto, 400w, 1200w\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/03\/shutterstock_1940879785.png?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"A coin representing Bitcoin on top of US dollars.\" width=\"1200\" height=\"675\" data-crediturl=\"https:\/\/www.shutterstock.com\/image-photo\/golden-symbolic-coin-bitcoin-on-banknotes-1940879785\" data-credittext=\"Volodymyr Maksymchuk\/Shutterstock.com\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"type:primaryImage imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.shutterstock.com\/image-photo\/golden-symbolic-coin-bitcoin-on-banknotes-1940879785\">Volodymyr Maksymchuk\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n<p>Bitcoin is great for large transactions, but if you are using it to buy a cup of coffee\u2014not so much. Until recently, inefficiencies limited Bitcoin\u2019s potential as a financial solution for everyday purchases.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"The_Problem_With_Bitcoin\"><\/span>The Problem With Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In order to maintain the security and transparency on the Bitcoin blockchain, the blocks of data that make up the blockchain are quite small. Bitcoin\u2019s blocks are only able to hold one megabyte of data. Some of the newer blockchains, like <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/solana.com\/\">Solana<\/a>, use block sizes of 10 megabytes. This lack of size slows transaction speeds and as a result, there can be \u201ctraffic jams\u201d on the blockchain.<\/p>\n<p>These traffic jams increase the fees that are necessary to add transactions to a block of data. When traffic is high, it is possible to have fees greater than the value of the transaction itself. It is estimated that the Bitcoin blockchain can handle roughly seven transactions per second (TPS.) In comparison, Visa\u2019s network can process up to 65,000 TPS for fractions of a penny.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Bitcoins_Hope\"><\/span>Bitcoin\u2019s Hope<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Fortunately, developers in the crypto community have been aware of this limitation for quite some time. The most compelling solution would be creating a way for transactions to be processed outside of the blockchain on some sort of second layer or \u201csidechain.\u201d Once complete; those transactions would then be added to the main Bitcoin blockchain in one lump sum at a minimal cost for users.<\/p>\n<p>In 2018, a company named <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/lightning.engineering\/\">Lightning Labs<\/a> confronted this challenge by launching the Lightning Network. They were the first to successfully integrate Bitcoin with what is known as a Layer 2 protocol. This innovation allows payments to be tracked on a second layer and then added to the Bitcoin blockchain at a later date. The most critical feature of this second layer is that it has no capacity limits. With less congestion on the network, payments can be sent for less than half of a cent and are near-instantaneous.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"The_Lightning_Network\"><\/span>The Lightning Network<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Similar to how users of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/venmo.com\/\">Venmo<\/a> or other digital payment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s give little attention to what goes on behind the scenes and trust the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to settle payments, it is not necessary for users of the Lightning Network to be aware of what\u2019s under the hood. Digital wallets are the equivalent of apps like Venmo and connect to the Lightning Network to facilitate transactions. The Lightning Network utilizes payment channels that are created between parties to facilitate transactions. One user sends a payment and when the other accepts, a channel is created.<\/p>\n<p>Since the channels exist outside the main Bitcoin blockchain, users can send and receive payments without having to pay a large fee or wait for verification on the Bitcoin blockchain. These channels remain open between users until one decides to withdraw Bitcoin. When the transaction is complete, then the payments are recorded as one transaction on the Bitcoin blockchain.<\/p>\n<p>The Lightning Network is an interconnected system that resembles something more like an electric grid with thousands of channels connecting thousands of users. Due to this interconnectedness, the network is able to find the path of least resistance to transfer payments between users, regardless of whether they have an existing channel.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"A_Real-World_Example_of_Lightning_in_Action\"><\/span>A Real-World Example of Lightning in Action<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Let\u2019s say you are visiting a friend in Spain. One evening, you and your friend go grab a bite at your friend\u2019s favorite restaurant. This restaurant accepts Bitcoin. When paying your bill, you search for the restaurant in your digital wallet, you send the payment, and everyone is happy. What happens behind the scenes is where the true value of the Lightning Network comes into play. Since your friend has been a loyal Bitcoin paying customer of the restaurant, there is an existing channel between the two of them. Instead of creating a new channel, the Lightning Network will transfer your payment through the existing pathway between your friend and the restaurant because your friend is a regular there. None of the parties involved are aware of this as it happens.<\/p>\n<p>Think of it as being similar to having a mutual friend of someone on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>. This way, if a user does not have an open channel with someone on the Lightning Network, there is still a path through mutual users.<\/p>\n<p>As more people use the Lightning Network, more channels are created, which then causes the network to become faster and more expansive. The reach of the network will continue to expand as major competitors begin to realize its value. In 2021, Twitter <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.twitter.com\/en_us\/topics\/product\/2021\/bringing-tips-to-everyone\">announced<\/a> that users can now send each other Bitcoin through user profiles. The country of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/glimpse-under-hood-el-salvadors-bitcoin-experiment-2021-09-07\/\">El Salvador<\/a> recognized Bitcoin as an official currency and released a digital wallet that uses the Lightning Network. Mobile payment giant <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cash.app\/\">CashApp<\/a> revealed that their users will be able to send Bitcoin through their app as well.<\/p>\n<p>The main way to use the Lightning Network and send Bitcoin back and forth is through a digital wallet. Some of the more well-known wallets include <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/strike.me\/en\">Strike<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bluewallet.io\/\">BlueWallet<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.walletofsatoshi.com\/\">Wallet of Satoshi<\/a>, and\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/breez.technology\/\">Breez<\/a>. Simply connect a payment method, like a debit card, purchase some Bitcoin, and you can now send Bitcoin to anyone in the world with an internet connection\u2014lightning fast and dirt cheap.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><script>\n setTimeout(function(){\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s) } (window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n   fbq('init', '335401813750447');\n   fbq('track', 'PageView');\n  },3000);\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.howtogeek.com\/794014\/what-is-bitcoins-lightning-network-and-how-do-you-use-it\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;What Is Bitcoin\u2019s Lightning Network, and How Do You Use It?&#8221; Volodymyr Maksymchuk\/Shutterstock.com Bitcoin is great for large transactions, but if you are using it to buy a cup of coffee\u2014not so much. Until recently, inefficiencies limited Bitcoin\u2019s potential as a financial solution for everyday purchases. The Problem With Bitcoin In order to maintain the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":426778,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/03\/shutterstock_1940879785.png?height=200p&trim=2,2,2,2","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-426777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=426777"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/426778"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=426777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=426777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=426777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}