Lightning Network In A Nutshell

01/24/2018 - 15:43 UTC
Lightning Network In A Nutshell

Bitcoin has a low transaction per second (TPS) limit, around 5-7 TPS. The Lightning Network is one of the proposals to overcome this limit. According to its creators, it can scale almost endlessly becaus it is only limited by how fast you can sign transactions and send them to your counterparty. On the other had, the Bitcoin blockchain will  remain at 7 TPS as long as the blocksize remains the same.

This video explains how Lightning works.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice on Bitcoin, Cryptocurrencies or finance in general.