Bitcoin’s Lightning Network (LN)– Transactions of the future is here!

Want to transact lightning fast? The Lightning network of Bitcoin is developed for faster transactions with fewer fees. After the launch of Bitcoin, Bitcoin trading in India and across the globe have popularized in an instant. It is no doubt to the fact that cryptocurrencies are beginning to change the world. Bitcoin’s Lightning Network will allow for instant transactions in future and help you make payments using Bitcoin.

Investing in Bitcoin’s lightning network – Is it worth?

With Cryptocurrency exchange development in Kolkata taking the stage, Bitcoin’s Lightning Network might be the future of transactions. The network allows for swift and instant transactions with much fewer fees. The right way to invest in the network is to buy and store cryptocurrency (Bitcoins) in the wallet, the more you store, the more will be in demand for the Lightning Network.

With more Bitcoin stored in the wallet, the greater will be the demand of the network. However, a lightning node can be run to invest in the network. A node is created every time when one connects to the Lightning Network. As of now, there are 2 types of nodes available with Bitcoin –

•    Full node download - allows the blockchain to validate the transactions.

•    Lightweight node – fetches only the important data before processing the transactions.

At the moment the Bitcoin Lightning Network is capable of handling around 7 transactions every second, and Bitcoin’s block size of 1 MB, a huge chunk of transactions can be recorded in each block without a hassle.

How can we use Bitcoin’s lightning network?

According to companies offering Blockchain development services, you can use the lightning network if you are already registered on Bitcoin Testnet which is a clone of the network. Here the coins won’t hold any value. To transact through Bitcoin’s Lightning Network, follow the simple steps below –

•    Client data retrieval
The current network client can be found and downloaded on the GitHub profile of the Lightning Network. Simply download it and unzip the file to run it on the computer.

•    Hold Testnet coins
Get some Testnet coins which resembles Bitcoin but does not hold the same value. The coins need to be transferred directly from the faucet to the Lightning app, and create a Testnet wallet in Copay located in the “Advanced Settings” section.

•    Wallet funding
Once the lightning app is set on the phone or mobile, it should be synched to the Lightning Network. Bitcoin Testnet holds over 1 million blocks, but synching has to be completed within 2 hours. Once everything is synched, you can send some Testnet coins to the wallet address provided.

•    Channel creation
A has to be created, which can be done entering your partner’s channel public key and IP addresses as well. However, if you already have referrals on Lightning Network, then simply connect with them without further ado.

•    Making payment
A payment can be made on the network by issuing a payment request. However, can be a waiting period before the first payment is initiated. Bitrefill is one such site that accepts Bitcoin payments. The only thing to have, is a valid phone number and pay through Lightning Network.

•    Receiving payments
In order to receive a payment through the network, someone has to have an open channel connected with you, also, you need to empty one of your existing channels as well. A payment request can be generated easily by entering a label and an amount.

According to a Top Bitcoin development company, with rising popularity, Bitcoin’s lightning network has reached an all-time high of 3,000 Bitcoin. The Lightning Network has been growing rapidly and can be termed as a second layer added to Bitcoin’s blockchain, allowing off the chain transactions. If the network grows at a continuous pace, then the crypto industry can expect more wallet developers integrating lightning network facility.