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12 bytes added ,  17:58, 14 January 2019
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|<strong>Thunderbolts and lightning, very very... exciting!</strong>
 
|<strong>Thunderbolts and lightning, very very... exciting!</strong>
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The Lightning [[Network]] scales blockchains and enables trustless instant [[Payment|payments]] by keeping most transactions off-chain and leveraging the security of the underlying [[Bitcoin|blockchain]] as an arbitration layer.
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The Lightning [[Network]] scales blockchains and enables trust-minimized instant [[Payment|payments]] by keeping most transactions off-chain and leveraging the security of the underlying [[Bitcoin|blockchain]] as an arbitration layer.
    
This is accomplished primarily through "[[Channels|payment-channels]]”, wherein two parties commit funds and pay each other by updating the balance redeemable by either party in the [[Channel|channel]]. This process is instant and saves users from having to wait for [[On-chain transactions|block confirmations]] before they can render goods or [[Services|services]].
 
This is accomplished primarily through "[[Channels|payment-channels]]”, wherein two parties commit funds and pay each other by updating the balance redeemable by either party in the [[Channel|channel]]. This process is instant and saves users from having to wait for [[On-chain transactions|block confirmations]] before they can render goods or [[Services|services]].
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[[Channels|Payment channels]] are trustless, since any attempt to [[Fraud|defraud]] the current agreed-upon balance in the channel results in the complete forfeiture of funds by the liable party.
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[[Channels|Payment channels]] are trust-minimized, since any attempt to [[Fraud|defraud]] the current agreed-upon balance in the channel results in the complete forfeiture of funds by the liable party.
    
By moving payments off-chain, the cost of opening and closing channels (in the form of [[On-chain transactions|on-chain]] transaction fees) is ammortized over the volume of payments in that channel, enabling [[Payment|micropayments]] and small-value transactions for which the [[On-chain transactions|on-chain]] transaction fees would otherwise be too expensive to justify. Furthermore, the Lightning Network scales not with the transaction throughput of the underlying blockchain, but with modern data processing and latency limits - payments can be made nearly as quickly as packets can be sent.
 
By moving payments off-chain, the cost of opening and closing channels (in the form of [[On-chain transactions|on-chain]] transaction fees) is ammortized over the volume of payments in that channel, enabling [[Payment|micropayments]] and small-value transactions for which the [[On-chain transactions|on-chain]] transaction fees would otherwise be too expensive to justify. Furthermore, the Lightning Network scales not with the transaction throughput of the underlying blockchain, but with modern data processing and latency limits - payments can be made nearly as quickly as packets can be sent.
Bureaucrats, gooduser, Administrators, trusted
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