Changes

Jump to navigation Jump to search
31 bytes added ,  07:54, 17 January 2019
no edit summary
Line 8: Line 8:  
[[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.
 
[[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. All of this with low [[Fees]].
    
[[Hash Time-Locked Contracts]] (HTLCs) allow transactions to be sent between parties who do not have a direct channels by routing it through multiple hops, so anyone connected to the Lightning Network is part of a single, interconnected global financial system.
 
[[Hash Time-Locked Contracts]] (HTLCs) allow transactions to be sent between parties who do not have a direct channels by routing it through multiple hops, so anyone connected to the Lightning Network is part of a single, interconnected global financial system.
Bureaucrats, gooduser, Administrators, trusted
846

edits

Navigation menu