A Lighting Network Can Aid Bitcoin Transaction Backlogs

A Lighting Network Can Aid Bitcoin Transaction Backlogs

A lighting can aid Bitcoin through its backlogs problems

Days after SegWit solution became discarded by its supporters for lack of consensus, a backlog of transactions and fees, has plunged the bitcoin network. Luckily, the lightning network has come on board to solve bitcoin scalability problem that keeps it congested due to large volumes of transactions.

Scalability problem

Bitcoin network tends to suffer because while the number of transactions seems to be escalating, the current block size is limited to 1 MB. The block space restricts the transaction amount that is processed in the bitcoin network. As users create plenty of transactions, a backlog will eventually develop over time.

What entails the lighting network?

A lighting network is a smart contract script that opens private payment channels where peers can transact at a low cost, scale-free and efficiently in the bitcoin blockchain.

The Foundation

The activation of SegWit, which merely doubled blockchain capacity set a roadmap for lighting implementation. Bitcoin community and developers can now rely on lighting network since SegWit dealt with the transaction malleability bug that prevented it from working.

How is lighting different

Using the lighting network, individuals would not wait excessively as transactions and verification amongst peers would be carried out concurrently and instantaneously. Data limit can now be used efficiently as only the final transaction will be broadcasted within the blockchain instead of posting a single transaction.

Lighting network is an inexpensive and scalable protocol that enables merchants to avoid costs as the transactions will not have to pass through any (third party) financial intermediary.