What is Bitcoin lightning?

Bitcoin lightning is also software, it allows two unknown users to connect and agree to a set of rules regarding ownership of a set amount of bitcoin. The easiest way to think about lightning is opening a tab with a bar or restaurant.

With lightning software, you can keep that tab open for as long as both parties agree. The software allows a user with a lightning balance to send bitcoin to another user with a lightning wallet. Each node operator running the bitcoin lightning software will connect to other nodes and open a connection (channel – red arrows) where they agree on the balance for each side of the channel after each transaction. A node is just a computer server running the software for bitcoin, lightning, and wallet software to interact with users.

Transactions going from Josie’s lightning wallet to Eddie’s will move bitcoin from strike’s node to Wallet of satoshi’s node to anafaskrowten.com’s node to your node. At each node, the amount of bitcoin will be accounted for as it moves by the software.

Josie can also send bitcoin to Hazel, who is in the same network, and the lightning software will manage user balances internally.

The nodes are able to connect new users to the network and allow for the transfer of bitcoin, lightning fast. If you haven’t already done so, setup a lightning wallet, and try spending bitcoin at one of our creator websites or see some kitties. If you would like to build your own node and network of creator websites, join us here.