What Is Lightning and How Does It Work?

[BitGoba]

I saw someone in the BTC Lightning Network Nodes – Monthly Overview topic say that Lightning is centralized, so I tried to explain in the simplest possible way what Lightning actually is. But the author of the thread deleted the post for some reason,so I’m opening a new topic here, where we can discuss Lightning, what it actually is, how it works, and everything else related to it.

I have seen similar claims before, saying that Lightning is not decentralized and that Lightning is not Bitcoin.I understand that it can be hard for people to understand, because not everyone has technical knowledge, so I will try to explain Lightning in simple and easy-to-understand language.


Lightning is just an additional layer of software that complements the Bitcoin software. It is not a separate network, but simply an upgrade built on top of Bitcoin’s peer-to-peer network. Lightning cannot function without Bitcoin software. To install Lightning and open a payment channel, you first need to have Bitcoin software installed. Lightning is only an add-on that allows transactions to happen off-chain, by letting two Bitcoin nodes open payment channels between themselves. When they decide to close that channel, the final settlement is recorded on-chain.
The bitcoins used in Lightning are real bitcoins, “locked” on the main chain.

There are several versions of the software, developed by different programmers, such as LND, Core Lightning, and Eclair.

Most people do not even understand how Bitcoin works, nor do they run Bitcoin software. They do not understand that Bitcoin is a peer-to-peer network.
People need to run a Bitcoin node to truly understand it. Once you run your own node, you will understand much better what Bitcoin is, what decentralization means, what Lightning is, and why Bitcoin is different from shitcoins and altcoins.

[sleepfirefly]

you’ve summed it up pretty well. it’s not a different network, it’s still bitcoin. lightning network just allows for faster and cheaper transactions through bitcoin. the differences are that with the lightning network, it can be a bit too technical to use. the bitcoin network itself is the layer 1 and the lightning network is the layer 2.

[arzuo]

I would like to learn more about how the Lightning Network works.

If a transaction is made while offline on the Bitcoin Lightning Network, will it be processed and updated as soon as the device goes back online? Or does it remain pending in an offline state that requires both parties to come online and confirm it?

It would be helpful to understand this with a diagram or graph.

[SquirrelJulietGarden]

Writing about it is too overwhelming and not actually necessary as there are many guide threads about Bitcoin Lightning Network.

Mastering the Lightning Network.
the Lightning Network FAQs.
Electrum Lightning Network walkthrough
Lists of open-source bitcoin lightning wallets.
A Beginner's guideline to Bitcoin Lightning Network.
[Guide] FULL NODE OpenSUSE 15.3: bitcoind + electrs + c-lightning + RTL

[Charles-Tim]

People need to run a Bitcoin node to truly understand it. Once you run your own node, you will understand much better what Bitcoin is, what decentralization means, what Lightning is, and why Bitcoin is different from shitcoins and altcoins.

You do not need to run a node before you will understand what bitcoin is. Bitcoin network is decenlized and coins send on bitcoin lightning network is bitcoin. It is good that you know that later but I did not run a node before knowing all these, only what I did is that I read very well about bitcoin lightning network for me to understand what it is.

[(BTC)]

Lighting is cool for a few reasons, but I like the idea of splitting individual satoshis into 1,000 units. When it settles on chain, it's rounded to the nearest whole satoshi, but in Lightning you can send micropayments. Fast micropayments are important/useful for mass adoption initiatives and applications.

[Anik_Elft]

I think the confusion mostly comes from how Lightning "looks" vs how it actually works. Lightning is basically a second layer on top of bitcoin that let's people send payments faster and cheaper by using payment channels. Instead of every transaction going on-chain, two users can open a channel, transact multiple times, then settle the final results on bitcoin.

A simple example, if on-chain fees are around $2-$10 per transaction, Lightning can bring that down to almost zero (sometimes just a few cents or less), especially for small payments. That's why it's useful for things like tipping or microtransactions.

That "centralized" argument actually comes from the fact that some big nodes route a lot of payments. But from what I've seen, anyone can still run their own node and open channels, so the system itself is still decentralized, it just has some hubs form naturally.

Based from my experience, Lightnight makes more sense once you actually try it or run a node. It's not separate from bitcoin, it's just a tool to make bitcoin more usable day-to-day.

[Findingnemo]

~
People need to run a Bitcoin node to truly understand it. Once you run your own node, you will understand much better what Bitcoin is, what decentralization means, what Lightning is, and why Bitcoin is different from shitcoins and altcoins.

Not true, it is just another software that anyone can run if they have internet and 1TB of disk space, so running a node doesn't make them that they are aware of what is bitcoin, what decentralization is, and LN is a separate topic that has nothing to do with qt.

What I would like to add is that coin on LN isn't wrapped or tokenized bitcoin, it is just bitcoin as it is.

[Easteregg69]

It's running credit on a layer 1 where i got it. Try to get out of obligations.

Buy a company that produces goods. morgan style. You don't show up at meetings or inspections.

Got a lift. See you later. "I am a coward busting myself". On lyrics.