Understanding a Lightning Network, Part 2: Creating a Network by: Aaron outpost Wirdum

The Lightning Network is a substantially many rarely expected technological creation to be deployed on tip of Bitcoin. The remuneration layer, initial due by Joseph Poon and Tadge Dryja about a year ago, promises to support a probably total array of off-chain exchange among users, during scarcely no cost – while leveraging a confidence offering by Bitcoin.

At slightest 3 companies – Poon and Dryja’s LightningBlockstream and Blockchain – are now operative on implementations of a technology. But few outward this tiny technological frontline entirely grasp how a “future of micropayments” is set to boost Bitcoin’s capabilities.

In this three-part series, Bitcoin Magazine lays out a simple building blocks of a Lightning Network, and shows how they fit together to comprehend this arriving custom layer.

The first part of this array lonesome simple building blocks, and explained how these are used to settle bidirectional remuneration channels. This second partial explains how bidirectional remuneration channels are incited into a network.

The Network

In a prior article, Alice and Bob determined a bidirectional remuneration channel. Now, Alice wants to compensate one bitcoin to a third person, Carol.

To do so, Alice and Carol could open adult a remuneration channel between them. But they don’t indeed need to.



Read more ... source:

Advertise on the Bitcoin News

NO COMMENTS