Bitcoin, Crypto currency, Blockchain

Bitcoin: Lightning-the transaction was successfully tested

a15342f3afaa452c340c43c1437b0651 - Bitcoin: Lightning-the transaction was successfully tested

Via Twitter Alex Bosworth has announced that he has carried out within a test network, a Bitcoin Lightning-transaction to Recharge his Prepaid phone successfully. Thus, the development of a Lightning network, is progressing on a further step to solve the scaling problems of Bitcoin.

Bosworth has published on Twitter a short Video of the transaction. In the Video, to see how he is charging using the Lightning network, the Prepaid balance of the telephone by the provider Bitrefill. The Bitcoin Lightning-transaction happened almost in real time, without fee:

Though the implementation of Lighting in the “real” public Bitcoin network still seems far away. The transaction of Bosworth based largely on command-line commands, yet gives you a view of how the future of Bitcoin might look like. According to Bitinfocharts a Bitcoin transaction costs are currently still always an average of 32 dollars. The transaction duration lasts for several hours.

Lightning can solve both of these problems. Not only the transaction confirmation time would be reduced to a few seconds (virtually real time), but also the transaction costs to zero.

What’s Lightning in Detail is Bitcoin’?

Lightning is probably the most famous solution to solve the scaling problems of Bitcoin. This Lightning is a new level of abstraction on the Bitcoin Protocol, transactions are faster and more cost-effective can be carried out. Although it was designed to solve the technical limitations of the Bitcoin Blockchain, but it can also be implemented on any other Blockchain.

The Lightning network is based on a technology called “payment channels”. Such a payment channel between two parties is created when both parties to a so-called 2-of-2-multi-signature to create a transaction.

Simply put, the channels serve the purpose of the payments outside the Bitcoin Blockchain. This has the advantage, that these transactions must not be by Miner validated, and thus immediately shipped. Instead of writing a lot of (smaller) transactions in the Blockchain, can perform the two parties on their own channel as many Bitcoin transactions as you want, without that this be included in the Bitcoin Blockchain.

The transaction is to be recorded, each Person has a private key. Only when both parties sign it with your key, and thus signal that the transaction is completed, will be written the total amount and the balance in the Blockchain, and the channel closed. Thereafter, the “regular” TRANS-action confirmation is done by the Miner.

In addition, Lightning has smart contract mechanisms with which user can close their channels unilaterally. This Lightning uses a “Hashed Timelock-contract”, in order to ensure that, if a party does not appear, the second party can get their money always. The fair value of the contract can be set in hours or days.

Therefore, Lightning is, especially in relation to transactions of smaller amounts interesting. Due to the current cost of a transaction, BTC is at the moment for such “Micro-Payments” completely unsuitable.

A more detailed description of the Bitcoins Lightning here: https://coincenter.org/entry/what-is-the-lightning-network

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