Bitcoin's Lightning Network, Simply Explained!

Bitcoin has a 7 transaction/second limit, so how can we overcome this? The Lightning Network is one of the proposals and in this video I'll explain how it works.

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#bitcoin #crypto #blockchain #scaling #simplyexplained

[JackChoros]

In 25 years, everyone will talk about how Bob set up a payment channel to spend 10 million dollars on a coffee!

[cuongdc_unreal]

2021: Bob actually using the lightning network to purchase a cup of coffee in El Salvador

[tefazDK]

Finally someone made a proper video explaining the lightning network. Thank you so much.

[ByGraceThroughFaith]

I'd like to add that this is all taken care of by the wallet, the user doesn't have to open the channel manually. this going to be done in the background and we don't have to open and close channels nor find routings to the final destinations of the payments. Great video!

[hi]

Please don’t stop making these kind of animated videos! They’re the only way I can explain to normal people how this stuff works! Most informative videos about blockchain/cryptocurrencies on YouTube stink.

[surajhegde]

Okay so basically Lightning Network can be used where we make repeated payments (through Bitcoin) and instead of multiple transactions creating a burden on the Blockchain network, we record these mini recurring transactions in a separate ledger and then capture the final balance as a single transaction in the Blockchain.

[eMaringolo]

I contributed with Spanish subtitles. Please approve it! I even corrected the mismatch between the 0.01 BTC and 0.05 BTC of the initial tx.

[cryptocashready]

Thank you for taking out time to make this video! I kept hearing about the lightning network and how it could be helpful to bitcoin but didn't understand it. This presentation helped a lot! It clear it up quite a bit. I am glad this was created do bitcoin could be used to do everyday transactions. Keep up the good work! 😊 #bitcoin #BTC #blockchain #Lightning

[TrudleR]

Thanks for the video, very nice work, but there is one concern:
So you do not need to open a channel, it will just use the channels of other people. You send 0.001 BTC and one of those guys between decides to close the channel, meaning your funds will be written to the chain and you pay a big part of the fees. Doesn't sound like a solid concept, if you ask me.

[mitchellwang]

Thanks for the video. I have one clarifying question: where is the balance sheet stored? How are they able to change the balance sheet without accessing the main blockchain?

[tinajackson]

I'm new to Bitcoin and would like to invest. But I've got no idea on how to make real profits. Can someone please tell me how to go about it.

[Dan-dzzg]

Please explain (at 3:45): "The system ensures that only the latest signed balance sheet can be used to unlock the money." How does the Lightning system ensure that only the latest balance sheet is valid? What's stopping Bob from just broadcasting an earlier copy of the balance sheet and closing the channel?

[jbnxcom]

That's an expensive cup of coffee.

[BlenderDProjects]

What mechanism ensures only the latest balance sheet is used? If the network is unaware of these balance changes, how could it possibly know a newer one exists? Also how is each key validated off network exactly?

[irathi]

Also any amount being transferred cannot exceed the ammount on any one of the links in between you and the recipient. This WILL create the need for larger lightning network hubs (the intermediates Anontony talks about). The hub will be easy for anyone to connect to and it will have many connections to other people. Thus it must also hold a LARGE amount of bitcoin in order to serve all these people when large sums are transferred. So you get a large hub, with many connections and a lot of BTC in that hub taking fees for all transactions. That sir is a bank.

[theeliteneet]

What happens if I try and spend a bitcoin on the main chain and the lightning network at the same time? Is there risk of double spending?

[margiecallahan]

Thanks for this great explanation that even helps newbies like me in Fall of 2021!

[psygodnp]

nano (xrb) or bitcoin lightning network ? which will be adopted ?

[DecemberGalaxy]

thanks so much! I can hop safely to the technicals now.

[boonpinglai]

Hows the transaction being approved if buyer(A) buy coffee from coffee shop via channel (B) & (C)? (A)-->(B)-->(C)-->coffee shop. Does all this records need every nodes to approve?