8 Things to Know About Lightning Network

Cointral Marketing Manager
8 Things to Know About Lightning Network

In this article, we will give you 8 facts about Lightning Network. With Cointral, you can trade Bitcoin, Ethereum, Ripple, Dash, Tether, BNB Coin and 1200+ altcoin from our branch in the Grand Bazaar.

1. What is Lightning Network?

Let’s start with the definition of Lightning Network. Lightning Network is an open source project that provides solutions to the problems and delays experienced in Blockchain structure. It aims to increase the processing capacity of the decentralized network per unit time and to make micro payments possible.

2. How can I join the Lightning Network?

To join the Lightning Network, you need to use the wallets integrated into the Lightning Network. Bitcoin wallets that can only be connected to the Bitcoin Blockchain cannot be processed in the Lightning Network.

3. Is Bitcoin in the Main Chain Different from Lightning Network Bitcoin?

There is no difference between the two. Lightning Wallets also function as Bitcoin wallets. For example, when you transfer a Bitcoin from a Bitcoin wallet to a Lightning wallet, the transaction is written to the Bitcoin Blockchain. For this reason, the completion of this transfer must be confirmed and written to the block with the approval of a sufficient number of miners.

4. How to Complete Transactions on the Lightning Network?

Payment Channels are created on the Lightning Network to ensure that your payment requests are processed quickly and at low costs. By depositing Bitcoin to these payment channels, you can make your payments quickly on the payment channel you entered.

5. What Does Payment Channel Mean?

The payment channel on the Lightning Network is the payment point where all accounts included in the channel can make Bitcoin transfers instantly and with a low transaction fee. Anyone who wishes to receive payments on the Lightning Network can create as many Payment Channels as they wish and play a role in determining the transaction fees of that channel.

6. How to Complete Transactions on Payment Channel?

To complete your transaction on the Payment Channel, you must first subscribe to the payment channel and have made some Bitcoin investment. In this way, when you want to pay for the channel, you transfer the ownership status of the amount to the owner of the channel.

As a result of this process, ownership of the part of the Bitcoin collected in the pool that you pay is transferred to the owner of the channel. You can withdraw the portion of the Bitcoin you have not paid at any time and leave the channel.

7. Who can create the payment channel?

Anyone involved in the Lightning Network can create a payment channel.

8. How are Transaction Fees Determined?

The transaction fees on the Payment Channel are determined by the channel owner who created the channel.

Investment information, comments and recommendations contained herein are not included in the scope of investment advisory. Therefore, making an investment decision based solely on the information and comments contained herein may not produce results that are in line with your expectations.