The Lighting Network For Better Transaction Processing On The Blockchain: Pros And Cons

The Lightning network is a network that basically works right on top of Bitcoin’s network as a layer network. The lightning network works through interconnected channels that are built on different payment channels.

A good comparison to this is the US dollar backed up by the gold standard and that was one of the most common forms of payment. With all the currencies the case is that it allows micropayments which are handled off-chain and then at some point it is attached to the chain, lowering the number of transactions sent. The problem with this is that each transaction is passed through the channels rather than the blockchain. It remains an issue how much data would be needed, the entire detail or just the end ones.

With the Lightning Network, there is a further reduction of the transactions fees. While this may sound great, there are a few potential problems. Lower fees may be great for the end user but because the sustainability of certain coins such as Bitcoin is fee driven, the miners get rewards for the mining process and fees may ultimately become the only reward for miners, they will be left out with no reward in the end and this will bring a little damage to the Bitcoin network as a whole.

The lightning network is surely a great step forward in the entire crypto world, with a lot of benefits by its side. As with every new project, the negatives are something to be worked on and solve the problems in the near future.