Lightening network The world is waiting with bated breath to know the fate of the Bitcoin, the most popular cryptocurrency that is having a roller coaster ride since December 2017. These are troubled times for the oldest cryptocurrency as the transaction fees have catapulted to $30 and it has fallen to below $10,000. Is this the beginning of the end or just the sprouting of a whole new era of cryptocurrency? Since bitcoin is plagued by these problems, there are several altcoins that see a promising future. But what about those who wanted to make hay when the sun shone in December 2017 when bitcoin reached a high of $20,000 but now have to deal with a plunging cryptocurrency.

Will Lightening network prove to be the savior

One of the major problems with Bitcoin is its transaction speed; while credit cards can handle thousands of transactions every second, bitcoin can handle only 6-7. This scalability factor is hurting the growth of the cryptocurrency. Bitcoin developers hope to overcome this problem by adopting the Lightning Network a second layer peer-to-peer networking. AurelienMenant the founder of Gatecoin, a cryptocurrency exchange calls this networking technology, “a game-changing innovation,” one that will breathe fire into the dying embers of bitcoin.

The biggest advantage of this technology is the increase in speed exponentially and the reduction of transaction costs to practically zero which will improve the scalability. Since all these transactions are off the public ledger there is greater privacy and more security. What also works in favor of bitcoin against other altcoins is its greater liquidity and longevity. 

How does Lightning network work?

Built on top of the bitcoin blockchain, the Lightning Network allows two users to directly transact with one another without proclaiming to the entire bitcoin world. Both the parties can track the transaction history; this way they can overcome the time-consuming process of validating each transaction on bitcoin. This is also less expensive thereby bringing the transaction costs down drastically because it reduces the block space.

The blockchain is the ultimate judge in case of any dispute. Both the concerned parties can send their balances to the blockchain to verify and do the needful. You are not restricted to anyone as you can transact with multiple users on the network. The flipside of this technology, of course, is that you can transact only with someone who is online.

The lightning network in use

How will the scalability of the bitcoin be affected once the lightning network is adopted into the regular stream is yet to be seen though currently bitcoin still remains the undisputed king despite some strife in its kingdom? What accentuates this conclusion is the first ever lightning network “Pizza transaction.” 

Laszlo Hanyecz is well known in the crypto world as the first person to buy a physical item like the pizza using bitcoin way back in 2010. He is back in the news for buying two more pizzas this time using the bitcoin lightning network. He followed a convoluted process of subcontracting a pizza to a local pizza place to use the new technology which obviously is still not available for everyday use.Though it was a trial where Hanyecz had to show the preimage of the transaction to the delivery boy, it is encouraging news for the bitcoin wielder. So if you too want to pay for your pizza with bitcoins, read the full Bitcoin Code review, and you can start trading today.

The altcoins are still in their embryonic stage and will take a while to match up with the bitcoin which despite the peaks and troughs is set to usher in the new era of fiat-less currency sooner than you think.