Billy Garrison (part 2)
In part two of the interview with Billy Garrison (@Billy_btc), we talk about the Bitcoin Lightning network. The lightning network is designed to solve Bitcoin’s scalability problems. Part one of the episode is solely on Bitcoin. If you haven’t already checked out the part one with Billy Garrison, we recommend you do so, it is a good primer for the content in this episode.
If you didn’t know that Bitcoin has trouble scaling, then perhaps this episode is for you. When investing in Bitcoin, people like to answer the question of whether or not Bitcoin will be around in 5, 10, or 20 years. One metric people commonly look at is how efficient the network is, and how many transactions per second it can process. Bitcoin is slow relative to other global payment networks like PayPal or VISA. In this episode of Go Full Crypto, Billy breaks down exactly what the lightning network is, and how it is being used around the world.
What is the Lightning Network?
The best way to understand the lightning network, is to compare it to the internet. Most people don’t know what https is, but they see it all the time when they’re browsing the internet. HTTPS is a protocol designed to support websites. HTTPS isn’t websites, but it makes them possible. Using HTTPS, millions of webpages, and applications become possible. Bitcoin is like HTTPS, it is a base layer protocol that makes millions of other applications possible. The lightning network is like the websites, or applications from the analogy. The lightning network isn’t bitcoin itself, but it uses, and interacts with the protocol.
What does the Lightning Network Do?
The lightning network makes it possible for bitcoin transactions to be nearly free, and instantaneous.
The lightning network actually simplifies a lot of aspects of using the bitcoin network. It makes it so transactions are basically free, and they happen instantly. This makes the lightning network ideal for micro transactions, or small day to day purchases like coffee or groceries. Instead of waiting 10 minutes for your transaction to be confirmed on the bitcoin network, lightning transactions are basically instantaneous.
Who Uses the Lightning Network?
The first time we mentioned the lightning network, was on episode 16 with Michael Peterson from Bitcoin Beach. As it turns out, teaching people how to use the lightning network was much easier than teaching them to use a basic bitcoin wallet. That might be because using the lightning network feels a lot more like using cash. It was ultimately more familiar for the El Salvadorians living in El Zonte. People all over the world who are looking to use bitcoin as money are adopting the lightning network. Thats because it actually solves a lot of the headaches caused by using the main bitcoin network. No long wait times, and no $5 transaction fees.
Listen to the Episode
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