Bitcoin’s Lightning Network, Simply Explained!

Bitcoin has a 7 transaction/second restrict, so how can we overcome this? The Lightning Community is without doubt one of the proposals and on this video I will clarify the way it works.

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  1. Thank you for taking out time to make this video! I kept hearing about the lightning network and how it could be helpful to bitcoin but didn't understand it. This presentation helped a lot! It clear it up quite a bit. I am glad this was created do bitcoin could be used to do everyday transactions. Keep up the good work! ? #bitcoin #BTC #blockchain #Lightning

  2. This video is mostly correct. There's an edge case when trading to/from empty or near-empty wallets – the payment channel will be instantly closed after such transaction, due to the need to protect the network and it's users from malicious users broadcast-spamming old states without risking anything.

  3. how does validation of the latest update work?

  4. Genial, excelente explicación.

  5. Years ago I made an alt-cryptocurrency for testing purposes only

    The total supply was 21,000,000 and coins per Block was 100

    What I did is speed up the transaction time faster than BTC and XRP so me and 10 other people send coins to each other in seconds

    But after testing it forked on us and had to delete that part of the source code

    My question to you is why did the coin forked so fast?

  6. Hey man awesome vid! Did you create and edit everything yourself?

  7. OMG, this youtube channel is amazing. Subscribing right now

  8. Basically, Bitcoin Cash provides an alternative to the changes made on the Bitcoin project. You can't deny Roger (and many others) has a point on not being happy with the direction, BTC is now facing.
    He didn't even invent BCH, (what most of you do not seem to know), he just hopped on the chain he thought to be better. And all he is doing is emphasising on why BCH, as the original p2p cash system has more utility and therefore ultimately is the better (or only) store of value.

    You can bitch all you want about Rogers personality, but remember: None of you and all the other BCH haters come off any way less unlikeable, than a triggered Ver. BCH remains nothing but an alternative Bitcoin Chain, that delivers to the needs of the people wanting it to be used as p2p cash without complex to implement solutions like LN. Since BTC didn't deliver still up to this day and you guys could care less, why would anyone even care? Because "Bitcoin Cash stole the Brandname?". Is this now the only argument, next to "BCASH-BCASH-BCASH" you guys can come up with? You guys want to tell me you care for the people, that want to buy BTC but buy BCH instead? crocodile tears, i tell you.

    and if bitcoin cash would be called B-token anyone would be happy with that altcoin and support roger in his cause to bank the unbanked? highly doubt it.

  9. so are lightning networks like sub networks that have channel ID's for different end to end connections?

  10. Incredibly helpful, thank you!

  11. The blockchain is a dinosaur. The future is off-chain. Bitcoin Segwit to da moooooooon!

  12. Oh sheet, now the banks will own bitcoin!!!

  13. Good job dude! Very comprehendable

  14. People should definitely check out NANO if they think this is attractive. Bitcoin is already outdated and is only useful as a store of value. There are so many different coins that do everything bitcoin aims to better.

  15. DigiByte doesn't need a lightning network.. DigiByte is faster and much more scalable than Bitcoin. In a very short time the wallets of DigiByte will be released with atomic swap.

  16. People are finally understanding how the central bankers created bitcoin. Lighting network is a local branch connected to the regional branch nodes which are connect to the NSA mainframe in Utah. Think hard and you will realize where their off site storage is and central control. Hint: there is abundant natural resources for the generation of electricity and the air is cold and  the ground water is very hot; hot enough to create abundant electricity. Got your Bitcoin?

  17. I am curious about the following use case:

    Let's say I am visiting a city for the day and decide to buy a coffee from Coffeeshop. I know that I will only order one coffee since I do not live there, so I pay using the lightning network, opening up a payment channel with Coffeeshop. Since I am only visiting, I decide to close the payment channel directly after the transaction takes place.

    I understand that the transaction would be instant using the lightning network (correct me if I am wrong), but would I not have to pay the same transaction fee for the one coffee using the lightning network as I would using the Bitcoin network directly?

    I can see where the lightning network would benefit multiple purchases through one vendor, but I am having a difficult time understanding the value for the one-time transaction use case mentioned above. Thanks in advance.

  18. What if something doesn't check out on closing the channel? And how often coffee shop needs to close the channel to get the BTC they've earned?

  19. Why not just use Dash InstantSend for instant transactions? It's simpler and faster, and may be cheaper.

  20. This LN sounds like the DEATH of large-scale debt.
    But, will you only be able borrow from the Bob and Alice of this world? No.
    I'm sure some money-mongrels will find a way to lend money to people in need at outrageous rates. But then, that might encourage people to be more financially literate and responsible with their spending habits and assets…?

  21. wow that just to much work needs to be simple for it to go mainstream

  22. So is it sort of like prepaying?

  23. it is working now on Eclair Wallet!

  24. Vertcoin looks promising.

  25. "Bob" doesn't have to create and fund a payment channel with the coffee shop, that would be insane. Imagine having to create different payment channels for every single store you shop at?

    He can simply fund a few different payment channels that will allow him to route his transactions to the coffee shop by finding a path between these channels. You can basically fund these payment channels with however much it is you are willing to spend on LN transactions, and good old computer science will do the appropriate routing for you. That's what's so great about the LN.

  26. This means Bob cannot buy Coffee from a shop of his choice. The transaction process will get complicated as more players and shops come so problem gets transfered elsewhere.

  27. That better be some damn good coffee for .05 BTC.

  28. so someone can do a bunch of low life trades and only one does the network see.

  29. If the Lightning Network relies on Ethereum smart contract to support its off-chain transaction, then once Bitcoin adopts the network, the burden of solving the scalability issue will be passed onto Ethereum.

    The scalability issue is not necessarily solved – just abstracted down to a lower level. Is this correct?

  30. This video doesn't explain how the lightning network works, more like how a single channel works in the lightning network. This doesn't touch on how complicated routing is and the problem with multiple channels changing with every transaction on the network.