Today we will review the interview given by the CTO of Lighnting Labs Olaoluwa Osuntokun on the Yotube. He explainied why lighnting network is important for Bitcoin, how it works and also explained the Lightning Project.
You may watch the full interview at https://www.youtube.com/watch?v=dutYNVVPJ7s
What is the Lightning Network, why is it important?
The Lightning Network is a method of enabling cheaper and faster transactions through a second layer built on top of the Bitcoin blockchain keeping the security of the base layer of blockchain intact. This is important so that people can use Bitcoin more often, eliminating high fees or late transaction. This ensures that confirmation time remain no hindrance to Bitcoin use. Also we can send small Bitcoin transcations not only fast but also much cheaper.
How Lightning Network is Validated On the Blockchain
Since the base blockchain takes more time to validate a transcation, Lightning Network validates it offchain making it super fast.
Lightning Labs Projects – Lightning Pool
Lightning Labs is working on Lightning Pool. We provide the bandwidth and people can use our bandwidth and we earn pasive income. Lightning pool is sort of a highway which you effectively lease by creating a lane or bandwidth for somebody else. You can call these as interest payments. Also it is fully transparent, fully verifable and non-custodial. This means you have complete control over your funds.
How To Use Lightning Pool
Lightning Pool are live as of now so that people can use it and beneifit from it. For this purpose you need a lightener that is called “lmd”. Lightning is a sort of protocol and there is tool called “terminal”. Basically terminal is kind of tool where you open an account and put your bids.
What Lightning Network Will Look Like in 5 Years
Lightning Network is very important for the scalibity of Bitcoin. As more and more people adopt bitcoin, we need faster transcation and here is when lighting network importance will come into play. LN will be widely used just like the we have close interation with the web itself. For any sort of payments on the web, where you would normally use your credit card , you will have a lighting node embedded in your browser.
However, people need to be aware of Lightning Network and how it functions. People still think that this is complex phenomenon and does not want to experiment over the traditional Bitcoin blockchain.