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RE: Bitcoin's Lightning Network To Boost Existing Blockchain
So, @tysler, when transactions occur through payment channels on the lightning network they are off-chain correct? For instance if a payment channel was opened between a contractor and the person funding the project, those small transactions such as hardware store trips and other costs would be conducted through this channel off the blockchain? If i understand this correctly then the first and last transactions of the channel are the only ones recorded?
Hi @noahcramos, I'm not studying blockchain tech like you do, but will try my best to address your questions. Do correct me if I am wrong!
Yes, it is based on an additional layer of network on top of the BItcoin blockchain.
Yes, a payment channel is opened between two wallets, that are already registered on the blockchain. As many transactions can occur between these two wallets through the channel, as long as the balance is kept in check. When the channel is completed and closed, the final balance is recorded.
Yes, secured channels between the people you are connected with, is sufficient to perform micro payments. Hence a path of shortest resistance is used. When used together with the main blockchain, it verifies the validity of such channels.
Awesome, thank you for the detailed response and further explanation! @tysler