Bitcoin and other decentralized peer-to-peer payment transactions are only scratching the surface when it comes to online payment modes. The trend needs to overcome a lot of hurdles for it to become the norm. Some of the obstacles surrounding Bitcoin transactions are the scalability and fees involved. Bitcoin payment can also take hours or days before completion. The cryptocurrency can also have transaction fees of about $50 regardless of the product bought.
Fortunately, the Lightning Network provides a way to overcome the problems that Bitcoin are facing. The Lightning Network delivers a significant boost for transactions per second while eliminating the need for substantial transaction fees. The ultra-fast blockchain upgrade is an ideal platform for online sales like eCommerce. The Lightning Network also provides added security and cross-blockchain transactions.
The Lightning Network improves the Bitcoin payment network by reducing transaction fees and increasing scalability while keeping the decentralized peer-to-peer payment method. The Lightning Network is a second-layer solution, which means that it needs to be on top of an existing Bitcoin blockchain for it to work.
The Lightning Network uses a system that offers a solution for consumers who want to avoid slow validation processes and maximum fees. The network operates payments off-chain by not directly submitting to the first-layer blockchain platform, but by bidirectional channels between the consumer and the seller.
The innovation of the Lightning Network provides a way for decentralized payments become much faster, more efficient, and cheaper. The Lightning Network provides a blueprint on how online transactions will improve over the next few years. Soon, the Lightning Network will be known as the front-runner and the new face of online payments.