Bitcoin is the queen cryptocurrency And, for now, there's no discussion. However, like everything in the world, things can change with the help of new ideas or tools, and this is the case with this virtual currency, for which solutions are being generated outside its ecosystem. blockchain, which can bring favorable transformations to the most important crypto on the market.
Among those options that have emerged as allies of BTC, there is Lighting Network (LN), the so-called global payment network, with which the BTC holders can make transactions faster than on the cryptocurrency's own blockchain.
INVITE AND WINAs if that were not enough, Lighting Network not only improves the speed of operations, but lowers the cost of the same and is very easy to use.
What's behind the Lighting Network?
The fact that Bitcoin is the most important crypto of the virtual currency industry does not make it strange that the creators of cryptographic solutions direct a good part of their efforts and resources to develop tools that improve the obstacles that the tecnología blockchain presents.
While the blockchain is one of the most important technological innovations of the 21st century so far, it is also true that there is room for improvement and that is what Lighting Network has done, by solve the main difficulties that Bitcoin has: the limits for scaling to many users, transaction speed, and fee costs.
These three solutions demonstrate the transformative potential LN for Bitcoin, to the point that it's predicted this protocol could shape BTC transactions in the medium term. Several financial services companies around the world are even enabling it as an alternative for conducting transactions with this cryptocurrency.
Speed and low prices
The Lighting Network was developed to solve problems. It basically allows users to perform off-chain transactions with complete security, because it uses cryptography and smart contracts that are accepted and supported by Bitcoin.
As for the obstacles that this technology helps to overcome, two of them are: scalability and speed. These are nothing more than Bitcoin's inability to process large amounts of transactions at the same time.
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With Lighting Network, millions of operations can be executed almost instantaneously, because it creates a micropayment channel network through which off-chain transactions are carried out. Otherwise, the BTC network can only process a few transactions, and with waiting times, because the blockchain must confirm them.
In figures, while LN is capable of managing up to one million transactions per secondThe Bitcoin network can only process 7 to 10 transactions per second. This slow transaction processing can lead to network congestion and pressure on fees.
In that sense, low fees are the third benefit that LN offers for Bitcoin. It highlights that because the Lighting Network software allows transactions to not be recorded on the blockchain, and therefore do not require the same level of verification that the blockchain demands, commissions or fees are very lowExperts explain it this way: LN payments are information sent between computers, which generates a minimal cost that could be a fraction of a cent.
Compatible wallets
Knowing the dynamics involved in the LN software, created to carry out transactions with BTC faster and cheaper than in the Bitcoin blockchain itself, it is appropriate to know the Lightning Network wallets which are currently in the best shape.
LN wallets are designed to facilitate the transfer of BTC between channels. Expert recommendations vary, but the following stand out:
- Breez Rayo Wallet: Open-source wallet available on iOS and Android. It features a digital cash register, podcast player, and advanced security features. It accepts up to 1 million Satoshis (0.01 BTC) and allows the use of credit or debit cards to purchase BTC.
- Zap Wallet: Available for Windows, macOS, Linux, iOS, and Android. Due to its design and functionality, it is one of the most robust in the Lightning Network wallet universe, which is why it is recommended for advanced or expert users. It supports debit cards, offers several security features, and lets you manage Lightning payments without the need for an escrow service.
- Satoshi's Wallet: Considered one of the best wallets for LN, it has a simple interface and a high level of security. It offers a top-up option, allowing you to send Bitcoin from an exchange or purchase it in the app. Unlike other wallets, this is a centralized service, meaning the provider stores the BTC. A plus point is that you don't need to create an account.
