What is Lightning Network and how will it solve bitcoin's scaling issue?

So what is Lightning Network and how will it solve Bitcoin’s scaling issue? As mentioned previously, Lightning Network is a network that exists as an off-chain, second layer of the Bitcoin network. Transactions on the LN layer are not recorded on the Bitcoin blockchain itself.

What is the Lightning Network & how does it work?

It's a network of payment channels that allows for near-instant, low-cost bitcoin transactions. On the Lightning Network, users can send and receive bitcoin without having to wait for confirmations on the blockchain. This means that transactions can be completed instantly, rather than in minutes or hours. What Is The Lightning Network?

How many transactions a second can a bitcoin blockchain handle?

While the main Bitcoin blockchain (layer 1) can typically handle fewer than 10 transactions per second, the Lightning Network (layer 2) can theoretically handle millions of transactions a second. How does the Lightning Network work? The Lightning Network uses smart contracts to establish off-blockchain payment channels between pairs of users.

What is an off-chain second layer Lightning Network transaction?

The idea of an off-chain second layer Lightning Network transaction is that two participants – like Alice and Bob – who may frequently interact with each other can opt to open a payment channel on the Lightning Network. This is a smart contract that holds a committed amount from both sides.