Lightning Network is a second-layer bitcoin blockchain solution. It is a network of payment channels between users. It is open-source software.

The project is designed to scale bitcoin and can offer faster and cheaper transactions than the basic mainnet. The commission for the Lightning network transfer is 1 satoshi (0.00000001 BTC).

The project has been criticized for insufficient economic incentives to keep the network running and lower user anonymity compared to the bitcoin blockchain.

History of Lightning Network development

The concept of payment channels was suggested by Satoshi Nakamoto in 2009, when he provided the community with a code outline, which suggested creating special channels between users. In 2013, bitcoin developer Mike Hearn published a letter from Satoshi detailing these mechanisms.

In February 2015, bitcoin developers Joseph Poon and Thaddeus Draya published the first unfinished white paper of the LN paper “The Bitcoin Lightning Network”. In early 2016, the main version of the LN white paper was released.

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