Bitcoin Block chain the Lightning Network -Fastest Transaction Layer?

Block chain technology is innovative and groundbreaking. Transparency and resistance to tampering all make these ledgers incredible tools for the financial technology sector. However, block chains aren’t perfect. In fact, they’re slow and expensive – it can sometimes take hours to transfer quantities of Bitcoin from one person to another. Not only that, the ballooning transaction fees slowly eroding the usability of the world’s preeminent crypto currency.
However, it doesn’t have to be this way. A new solution, the Bit coin Block chain Lightning Network, is poised to level the playing field when it comes to using slow and expensive block chains. But first, some background.
Although still in the testing phase, the lightning network can now be used to send transactions across different blockchains. The Lightning Labs development team successfully swapped testnet bitcoin for testnet litecoin through a lightning channel this week: ownership of the coins changed hands, while no transaction was recorded on either block chain.
Litecoin creator Charlie Lee told Bitcoin Magazine, referring to an older trick to exchange different types of coins trustlessly. “Off-chain atomic swaps are significantly better. They are instant, [have] low fees and better protected one’s privacy.”

How to Choose the Best Bitcoin Brokers?

The Bitcoin Trading Platform

The product offered by the Bitcoin broker is a crucial aspect. A more easy to use, quick to understand and intuitive trading platform will make your life easier and will increase the chances of generating a profit.
Buying Bitcoin is obviously holds risk, but also has great potential. Investing in Bitcoin using the brokers in the above table is wise as it allows for 24/7 Bitcoin trading, some offer leverage and it has the protection of regulators. These brokers also allow the option of Bitcoin trading using Paypal, Visa, Mastercard, other credit cards and other payment methods. So if you ask yourself where to buy bitcoin, the above brokers are a recommended way to invest.

Customer Service

Financial markets are highly unexpected, when you come to a decision you want to act fast upon it. The availability of a customer service in real time is quite important to the trading platform you choose. We are suggesting for looking at the communication channels that are offered (Email, Phone, Skype or others) and choosing the best trading platform for you. When ranking the best trading platforms this is something we take into account.

Assets

when you decide on a Bitcoin trading platform, it's time to review the tradable assets the different trading platforms offer. From bitcoin & commodities to CFD's and Forex. You should choose the trading platform that offers to trade with the assets of your preference.

Regulation

Regulators act in many ways in order to assure the stability of the trading platforms and online brokers, the fairness of their product and other aspects of their business. In terms of user experience, regulation asks brokers to validate the sources of the funds of users for example. This might slow down your way to a trade. This is an important factor in choosing the best trading platforms for you.

Does Bitcoin Blockchain Lightning Solve the Problem of Scalability?

The issue with blockchains is that as they get larger and more complex, it takes more time and effort to get things done. Blockchain scalability has always been a problem. If you think of a blockchain as a ledger, it’s easy to see why – each page of the ledger has a number of transactions on it. When the page fills up, it needs to be added to the ledger before turning over a new leaf and starting the process again.
For the Bitcoin blockchain, each page (a block) has to be processed before it’s added to the ledger (the chain). This process are involves reaching consensus with all the nodes running the blockchain, and this process can take around 10 minutes. Unfortunately it gets a lot more complicated from there.

The Solution to the Problem

So where does Lightning Network come in? This technology revolves around a simple but effective philosophy. It’s not every single transaction needs to be immortalized in the blockchain.
Yes, it’s true that part of the blockchain’s allure is because it’s a complete record of every single transaction. You can make a case for suspending it under certain circumstances – such as when two individuals carry on several transactions over time. In this case, it’s not necessarily as important to record each single exchange.

So how would Lightning Network resolve and streamline this process? By recording the opening of a “payment channel” between two parties on the blockchain . It is a not-so-secret passage that circumvents the need to record every electron as it transfers.
Payment channels can stay open, like a Star Trek wormhole, for as long as they’re used for. when all transactions are finished, the channel closes and the blockchain records just one overall transaction instead of dozens of little ones.
Think of it this way: you and your best friend open a payment channel between the two of you. You’re helping him buy a car, so you send him a couple of Bitcoin. Then, he buys the car and sends you the Bitcoin you loaned him, but over the course of a few days. Using the payment channel, the Bitcoin you sent him and the Bitcoin he sent you back is all recorded in one transaction once you close the payment channel. One transaction, one fee, one entry on the blockchain. It’s fast and easy.

More Payment Channel Examples

The best way to describe a payment channel, for those who still aren’t sure of it, is looking at it as a safety deposit box with two keys. Only you and whoever else has a key gains access to it.
When you opening a payment channel – or one of these deposit boxes – revolves creating an “opening transaction” where you and whoever else is using the box make an equal deposit. The double lock ensures that one person can’t make off with the cash without the input of the other.

Promise of Ownership

These transactions work on a “promise of ownership” model. The money in the box is used for transactions. Once you both fund the payment channel if you want to pay your friend, you promise to pay them out of your stash and vice versa.
Here’s a good example. There’s 20 BTC in your payment channel – 10 BTC from you, 10 BTC from your friend. You want to send 2 BTC to your friend, so you promise 2 BTC from your stash to your friend. Then, you both open the box, your friend has access to 12 BTC and you have access to 8 BTC.