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Lightning Network

Lightning Network

The Lightning Network is a decentralized network utilizing smart contract functionality to enable off-chain transactions with cryptographic confidence of on blockchain enforceability.

The Lightning Network (LN) is a 2nd-layer blockchain scaling solution intended to increase the transaction throughput of Bitcoin and other similar cryptocurrencies. New users can connect to the Lightning Network by opening bi-directional payment channels with other users, allowing them to route payments to one another.

Blockchains that have LN implemented can drastically reduce the burden of on-chain transaction processing. Using a LN payment channel requires only two on-chain transactions: the first which opens the channel, and the last which closes it. All of the transactions in between can be processed more efficiently off-chain, while maintaining the trustlessness of the original blockchain.

The two parties participating in any given transaction do not need to have a payment channel connecting them directly. Transactions can be anonymously routed through multiple bi-directional channels before reaching their final destination.

Timeline

Lightning Labs launches 1st Lightning mainnet release

Lightning Labs launched the 4th major release of their protocol, Lightning Network Daemon (lnd), which was the first Lightning mainnet beta.

Lightning Network paper is published

Joseph Poon and Thaddeus Dryja publish a paper outlining Bitcoin's scalability problem and proposing a solution that uses bi-directional payment channels.

People

Name
Role
Related Golden topics

Elizabeth Stark

Co-founder & CEO @ Lightning Labs

Joseph Poon

Co-founder @ Lightning Network

Olaoluwa Osuntokun

Co-founder @ Lightning Labs

Thaddeus Dryja

Co-founder @ Lightning Network

Further reading

Title
Author
Link
Type

Lightning Network in Practice

Jake Yocom-Piatt

Web

The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments

Joseph Poon, Thaddeus Dryja

Web

What is the Lightning Network and how can it help bitcoin scale?

Elizabeth Stark

Web

Documentaries, videos and podcasts

Title
Date
Link

Bitcoin's Lightning Network, Simply Explained!

December 12, 2017

Companies

Company
CEO
Location
Products/Services

ACINQ

Pierre-Marie Padiou

France

Protocol development

Lightning Labs

Elizabeth Stark

San Francisco, USA

Protocol development

References