They can update their individual allocations for the ledger entry by creating many transactions spending from the current ledger entry output.
Scalable, Instant Bitcoin/Blockchain Transactions
Transactions for the Future
Instant Payments. Lightning-fast blockchain payments without worrying about block confirmation times. Security is enforced by blockchain smart-contracts without creating a on-blockchain transaction for individual payments. Payment speed measured te milliseconds to seconds.
Scalability. Capable of millions to billions of transactions vanaf 2nd across the network. Capacity blows away legacy payment spoorlijn by many orders of magnitude. Fastening payment vanaf activity/click is now possible without custodians.
Low Cost. By transacting and lodging off-blockchain, the Lightning Network permits for exceptionally low fees, which permits for emerging use cases such spil instant micropayments.
Cross Blockchains. Cross-chain atomic interchanges can occur off-chain instantly with heterogeneous blockchain overeenstemming rules. So long spil the chains can support the same cryptographic hash function, it is possible to make transactions across blockchains without trust ter 3rd party custodians.
Powered by Blockchain Brainy Contracts
Lightning is a decentralized network using brainy contract functionality te the blockchain to enable instant payments across a network of participants.
How it Works
The Lightning Network is dependent upon the underlying technology of the blockchain. By using actual Bitcoin/blockchain transactions and using its native smart-contract scripting language, it is possible to create a secure network of participants which are able to transact at high volume and high speed.
Bidirectional Payment Channels. Two participants create a ledger entry on the blockchain which requires both participants to sign off on any spending of funds. Both parties create transactions which refund the ledger entry to their individual allocation, but do not broadcast them to the blockchain. They can update their individual allocations for the ledger entry by creating many transactions spending from the current ledger entry output. Only the most latest version is valid, which is enforced by blockchain-parsable smart-contract scripting. This entry can be closed out at any time by either party without any trust or custodianship by broadcasting the most latest version to the blockchain.
Lightning Network. By creating a network of thesis two-party ledger entries, it is possible to find a path across the network similar to routing packets on the internet. The knots along the path are not trusted, spil the payment is enforced using a script which enforces the atomicity (either the entire payment succeeds or fails) via decrementing time-locks.
Blockchain spil Scheidsrechter. Spil a result, it is possible to conduct transactions off-blockchain without limitations. Transactions can be made off-chain with confidence of on-blockchain enforceability. This is similar to how one makes many lícito contracts with others, but one does not go to court every time a contract is made. By making the transactions and scripts parsable, the smart-contract can be enforced on-blockchain. Only ter the event of non-cooperation is the court involved &ndash, but with the blockchain, the result is deterministic.