Lightning Network is trying to solve a few of the current problems that the Bitcoin is suffering: scalability (Number of transactions per second, right now Bitcoin handles about seven transactions per second), speed (time required to confirm a transaction,), cost (fee to pay for each transaction).
So, now OMGFIN transaction is on a Lightning Network node, and The Lightning Network is like an additional layer of connections built over the blockchain that dramatically improves its performance. It enables Bitcoin to handle millions of transactions per second with almost zero fees. This creates possibilities beyond what’s possible with traditional money.
At OMGFIN, we’re very excited about the Lightning Network. We believe this technology is the next step for Bitcoin and one of the future payment systems.
Advantages of the Lightning Network
The Lightning Network enables near-instant payments without waiting for network confirmations. Transaction speed is measured in milliseconds to seconds.
Low Fees and Minimums
By enabling transfers as small as a fraction of a cent with almost zero fees, the Lightning Network opens the door to new use cases, such as pay-per-second video streaming.
With the power of Lightning, Bitcoin can handle millions of transactions per second and outperform traditional payment systems without relying on a mediator.
How does the Lightning Network work?
The Lightning Network is a second-layer solution, which means it builds on top of blockchain technology and adds off-chain features. It works by opening select payment channels between users that allow you to instantly send and receive crypto as long as the channel is open. Once the circuit is closed, the new balances are written on the blockchain.
Go and check OMGFIN the Lightning Network Node details: https://static.omgfin.com/lightning-network-node/.