I'm reading an article on Let's Talk Bitcoin describing the Lightning Network in layman terms.
https://letstalkbitcoin.com/blog/post/the-lightning-network-elidhdicacsThere is a section which I quote that reminds me of my understanding of how the Ripple network operates.
"We can even take this scenario a step further. Let’s say that Alice DOESN’T have an open account with the General Store. However, let’s say that she does have one with the Blacksmith, who, in turn, has an account open with the General Store. In this scenario, Bob could pay Alice by adjusting his balance with the General Store, who then in turn, adjusts their balance with the Blacksmith, who then adjusts his balance with Alice. There is an often-quoted ‘six degrees of separation’ theory, which posits that everyone knows every other person on the planet within just six logical connections. Likewise, with the Lightning Network, every person can pay anyone else within just one, two, or maybe three hops along the way. In fact, it is this process of connecting people along existing open payment channels, that creates the underlying ‘network’ that the Lightning Network operates upon. Using the Lightning Network, anyone can pay another simply by forwarding funds and without the need to create any new deposits at the bank. By adjusting everyone’s balance sheet in accordance to everyone involved, you can effectively move money around without moving any physical money at all."
My understanding with Ripple is that credit can be extended to anyone in a similar way. Basically the power of the network is to create these connections between two people who may not necessarily know each other, but through their trusted networks a payment or loan can be made.
Can somebody tell me if I'm understanding this correctly?
