Pros and Cons of bitcoin’s Lightning network?

The demand for this digital coin is pumping daily, and users are eager to spend bitcoin for every transaction. Many people have already invested in bitcoin, but they want to spend their bitcoins as fiat currency. Since we do all the transactions in our daily lives via cash or online fiat currency, many businesses have started accepting this digital coin to increase their sales. Therefore, the lightning network came into existence so that everyone could use bitcoin as a fiat currency (fast and with minimal transactional fees).

What is the bitcoin lightning network, and how does it work?

The bitcoin blockchain can validate up to 1 MB of transactions in one block, which means five to seven transactions per second which became the transaction process very steady. No vendor will wait for more than five minutes in the online payment, but sometimes bitcoin transactions take over hours to complete the process. Miners do not prefer small amounts of bitcoin transactions because they will get small fees for solving the algorithms by using their skills, and that is why the small bitcoin transactions take hours to validate. So if the bitcoin user will pay through bitcoin in small amounts, he has to face some issues like slow transactional speed, high transactional validation charges, and too much bothering the merchants, and all the process happens through the first layer (directly on the blockchain). Still, bitql.app is opposite to the first layer.

Pros of bitcoin’s lightning network

There are many advantages of the bitcoin lightning network to the daily bitcoin users given below:

  1. Fast transactions: The slow transactional process limits doing transactions through the blockchain platform. But when you do bitcoin transactions through payment channels, there is no need to mine the bitcoin every time you send. Instead, the receiver will get prompt payments in bitcoin cryptocurrency since there is a second layer where transactions do not occur on the blockchain platform but through third-party payment channels. When a group of transactions is complete, it will broadcast all the transactions on the blockchain network.
  2. Less transactional fees: When you go with the blockchain network for the bitcoin payment, you have to pay high fees so that the miners can validate your transaction fast; otherwise, your transaction can take hours or days to transfer or receive. Buying bitcoin’s lightning network solved this issue because there is no need for miners to validate the transaction and nominal fees for small transactions.
  3. No-load on the blockchain network: When many bitcoin transactions co-occur, it becomes load on the blockchain network to validate, and miners take an average of ten minutes to solve a problem. Since the bitcoin miners also want to make money through their mining skills, they prefer to validate significant bitcoin transactions. Therefore, a pool of small bitcoin transactions would become a cause for making loads on the blockchain. More load on the blockchain means it will use more computational power and storage of nodes that will cause security bugs. The lightning network helps release the pressure on miners by providing a payment channel to the daily bitcoin users who do small transactions. When it becomes the pool of transactions, then all the transactions will be published to the blockchain to validate and record.
  4. Small transactions: The bitcoin lightning network’s model comes into existence to solve the problem of daily bitcoin users who want to pay in small amounts without charging high transactional fees. Since miners are not interested in small transactions, the second layer records the transactions of both parties. Then, after a while, it releases them on the blockchain network as a significant transaction so the miner can do it in minutes.

Cons of bitcoin’s lightning network

There is the following disadvantage of using bitcoin’s lightning network given below:

  1. Need a payment channel: The payment channel is the third-party wallet that creates the connection between the bitcoin sender and receiver, and you both need the same bitcoin wallet with the lightning network feature. Every time you want to do a transaction with another new bitcoin user, you both have to use the same channel for making the bitcoin trade, and it is a very lengthy and arduous process to convince every user.
  2. Stuck payments: Some bugs in bitcoin’s lightning network cause stuck bitcoin payments. However, the network has many features like instant payment and low transactional charges, but when your payment is stuck on the channel, it will take a few days to get back.
  3. Offline scams: Suppose you are sending a bitcoin payment through the second layer or payment channel and the receiver is offline, then there would be an offline scam, and when the receiver gets online, he will be late.