How Bitcoin transaction process

[Onyeeze]

I was researching on bitcoins transaction process and how Bitcoin transaction work's with miners, because I heard a lot of people complained of Blockchain technology and it's transaction confirmation issues and I began to compare lightning Network with Bitcoin with their different process of transactions. So my findings bitcoin and lightning nextwork process differently.

On Lightning, the funding transaction spends some Bitcoin UTXO, creating a multisignature UTXO to open the channel. Once the bitcoin is locked within that channel, portions of it can be sent back and forth within the channel, without the need to create any change. This is because the channel partners simply update the channel balance and only create a new UTXO when the channel is eventually closed using the channel closing transaction.

 Mining Fees Versus Routing Fees
On the Bitcoin network, users pay fees to miners to have their transactions included in a block. These fees are paid to the miner who mines that particular block. The amount of the fee is based on the size of the transaction in bytes that the transaction is using in a block, as well as how quickly the user wants that transaction mined. Because miners will typically mine the most profitable transactions first, a user who wants their transaction mined immediately will pay a higher fee per byte, while a user who is not in a hurry will pay a lower fee per byte.

On the Lightning Network, users pay fees to other (intermediary node) users to route payments through their channels. To route a payment, an intermediary node will have to move funds in two or more channels they own, as well as transmit the data for the sender’s payment.Mining Fees Versus Routing Fees
On the Bitcoin network, users pay fees to miners to have their transactions included in a block. These fees are paid to the miner who mines that particular block. The amount of the fee is based on the size of the transaction in bytes that the transaction is using in a block, as well as how quickly the user wants that transaction mined. Because miners will typically mine the most profitable transactions first, a user who wants their transaction mined immediately will pay a higher fee per byte, while a user who is not in a hurry will pay a lower fee per byte.

On the Lightning Network, users pay fees to other (intermediary node) users to route payments through their channels. To route a payment, an intermediary node will have to move funds in two or more channels they own, as well as transmit the data for the sender’s payment.

https://github.com/lnbook/lnbook/blob/develop/03_how_ln_works.asciidoc#comparison-with-bitcoin

[_act_]

Bitcoin transaction fee on the main network is different from the transaction fee on the lightning network. Lightning network is layer 2, it works differently and it is cheaper and faster.

Because of the high transaction fee on the main network, was the reason lightning network was invested in some years back. But some people are still not confident enough to believe in using it for large transaction. It supposed to only be used only for low amount of coins.

Another down side of the lightning network is how to use it. It is not easy to setup for use like normal bitcoin wallets unless you use a simpler wallet for it, like the wallet of satoshi.

[BitMaxz]

In addition to the above post lightning network fees is very cheap compared to Mainnet but the only problem almost all exchanges do not support it yet and it is still vulnerable to malicious attack and fraud which is why even exchanges do not support it.

And lightning network is not yet a perfect solution(Maybe in the future) and it is underdeveloped take note all transaction processes on the lightning network do not need miners because all transactions on the lightning network only happen inside their own node.
But still, you will need to use Mainnet when taking your BTC out from the lightning network like withdrawing it from the lightning network to transfer it to some exchanges.

[drwhobox]

Bitcoin transaction fee on the main network is different from the transaction fee on the lightning network. Lightning network is layer 2, it works differently and it is cheaper and faster.

Because of the high transaction fee on the main network, was the reason lightning network was invested in some years back. But some people are still not confident enough to believe in using it for large transaction. It supposed to only be used only for low amount of coins.

Another down side of the lightning network is how to use it. It is not easy to setup for use like normal bitcoin wallets unless you use a simpler wallet for it, like the wallet of satoshi.

Lighting network is confusing for some people still and that is the main reason why people don't use the lighting network. Although it is fast and takes fewer fees to confirm transactions. Another reason people got discouraged by lighting network most bitcoin wallet suggests the normal network by default to make transactions.

But with the increasing amount of bitcoin transaction fees people now will use the lightning network to make bitcoin transaction.

[Darker45]

They are different networks. For Bitcoin on-chain transactions to be confirmed, you need miners to do a lot of computation. It takes a significant amount of resources for miners to operate. You have to pay the cost. For Lightning transactions to be confirmed, no miners are needed. Not much energy is utilized. But when you open and close Lightning channels, the fee is much higher. Such transactions aren't on the Lightning network anymore. They take place on the Bitcoin network and they need miners.

[joniboini]

So my findings bitcoin and lightning nextwork process differently.

I'm not really sure about the direction of this thread btw. Is this simply an educational post on how lightning works, hence why you quote the articles from the link you shared above? If this is the case, I believe there are other threads about LN on the Development and Technical discussion boards, such as these ones[1][2]. There is also another one on the Beginner boards[3], although the discussion seems to have died down. I don't think there is a problem if you bump it again, as long as you have some questions that are yet to be answered, or new information that you want to share.

[1] https://bitcointalk.org/index.php?topic=4940536.msg44524521#msg44524521
[2] https://bitcointalk.org/index.php?topic=5158920.0
[3] https://bitcointalk.org/index.php?topic=5202798.0

[hd49728]

I believe there are other threads about LN on the Development and Technical discussion boards, such as these ones[1][2]. There is also another one on the Beginner boards[3], although the discussion seems to have died down. I don't think there is a problem if you bump it again, as long as you have some questions that are yet to be answered, or new information that you want to share.

[1] https://bitcointalk.org/index.php?topic=4940536.msg44524521#msg44524521
[2] https://bitcointalk.org/index.php?topic=5158920.0
[3] https://bitcointalk.org/index.php?topic=5202798.0

There are two topics about Lightning Network, lessons and Lightning Network Nodes.

OP can ask questions in these topics and get supports from people who had practice with Lightning Network to have helpful answers.
[Complete] A fortnight of lessons on the lightning network
Overview of lightning network nodes owned by forum users