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LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW

Essentially the Lightning Network was developed to remedy the block size issue of Bitcoin, and to allow for micro payments- which are currently unable to be transacted due to the minimum requirement of current transactions, and the fact that the current transaction fees render micro payments useless.

To put it very plainly, Bitcoin transactions take too long, part of this is due to the amount of transactions taking place, along with the amount of information that is included in these transactions.

As you may remember, I published a video a few days ago talking about segregated witness. That proposal would change how information from the transactions are stored, and the Lightning Network would change how many transactions themselves would be recorded onto the blockchain.

The lightning network would also enable micro payments by allowing for the minimum of 1 satoshi for a transaction, and the fees for that transaction would be incredibly tiny. This could revolutionize yet again the way we think of money. This would enable us to “stream money” much like how we stream videos and music, making money incredibly liquid and eliminating third party middle men.

If I’ve officially peaked your interest and you’d like to learn more, check out the links posted down below for a few articles and a great video where the bitcoin master Andreas Antonopoulos goes further into detail about this topic.

Articles:
https://coincenter.org/entry/what-is-the-lightning-network
http://www.coindesk.com/whats-left-bitcoins-lightning-network-goes-live/
https://cointelegraph.com/news/lightning-strikes-more-than-once-alpha-release-available

Andreas Antonopoulos:

source

16 COMMENTS

  1. Hey Crypto Tips : i have a question : As I understand payment-channels, like the lightning network, they are working off chain (no record in the blockchain). The only record to the blockchain is the deposit transaction to open the payment-channel and by closing the payment channel. But later all the transactions inside the payment-channel running on centralized servers, like traditional bank transfers. This is very fast, and could be very cheap if there is competition. But how the banks, who would run such payment-channels can secure that inside the payment-channel the transactions are not hacked and safe? And how the bank guarantee the customers that they dont double spend the funds if inside the channel all transaction are totally anonymous?

  2. Beautiful girls can talk about computer science stuff of course, but you didn't disclosure anything about your past, nor you talked about your backgrounds. Finance? CS? NOthing! You simply seem to be reading a script… this shows how condemned the crypto space is, cause most people are delving heads first without even understanding the bare minimum about whats behind all this….

  3. Olá. Em seu próximo vídeo, manda um alô para o Brasil. Estamos apaixonados pelo seu sorriso.

    Or…

    Hello. In your next video, send a hello to Brazil. We are in love with your smile.

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