Thumbnail for video 'Bitcoin's Lightning Network'

← Back to videos

Bitcoin's Lightning Network

Bitcoin has a 7 transactions/second limit, far too low for becoming a major payment provider (VISA handles on average around 4000 transactions/second). So how can we solve this?

One of the proposed solutions is by using the Lightning network. This reduces the load on the main blockchain by letting small transactions happen off-chain. By using this network, you directly exchange money with a counterparty, without hitting the main blockchain. Scalability through this system is virtually limitless.


A Primer to The Lightning Network (Part 1). (2017). ecurrencyhodler.
Fyookball, J. (2017). Mathematical Proof That the Lightning Network Cannot Be a Decentralized Bitcoin Scaling Solution.
Hertig, A. (2017). Lightning Can Scale Bitcoin, But Are Costs a Barrier?
Multisignature. (n.d.). Bitcoin Wiki.
Nadeem, S. (2017). What You Need to Know About the Future of Bitcoin Technology.
Scalability. (n.d.). Bitcoin Wiki.
Torpey, K. (2015). A Simple Explanation of the Lightning Network.
Visa Inc. Facts & Figures. (2017). VISA Inc.