3 ms·
Things like Lightning Network helps Bitcoin scale by creating a network of payment channels, where you work with "transaction drafts" shared between various nod
by Natanael_L 10y ago
Things like Lightning Network helps Bitcoin scale by creating a network of payment channels, where you work with "transaction drafts" shared between various nodes that are updated for every transaction made by the involved parties, and which is frequently "settled" on the blockchain by being published to it in its latest version (followed by creating a new "draft").
This means that only a fraction of all transactions actually need to be visible on the blockchain since LN is a secure way to "keep tabs" on the current coin ownership.
Using multisignature mechanisms and timelocks, this is very secure and abuse resistant.