First purchase using Lightning Network

First purchase using Lightning Network

The story of how I bought a router, paid in bitcoins, and the transaction was instantly and cost only 2 dollars 40 cents.

Lightning Network – cheap and quick transaction

Lightning Network is the hope of the crypto community because it is through this technology transactions in the bitcoin network will take place almost instantaneously and with minimal Commission.

News on technology LN travels fast on social networks. So when a Reddit user under the nickname btc_throwaway1337 stated that he successfully used the LN-network for the purchase, the news got on Reddit more than a thousand of Apatow (similar to likes on FB).

In particular, the user btc_throwaway1337 said:

I used Lightning Network (using lnd) to purchase the AR300M router VPN TorGuard store, and here he is! Perhaps it was the first physical purchase with a LN.

Here’s how he described his shopping experience:

It was quick, easy and, most importantly, instantly and for free!

The user btc_throwaway1337 also presented evidence of the purchase and transaction cost 2 dollars and 40 cents.

And because TorGuard already has open payment channels that the company uses to pay for services, btc_throwaway1337 could use one of them.

TorGuard specializiruetsya on the provision of access to anonymous virtual private networks (VPN), and also sells equipment, particularly routers.

LN nodes and channels

Lightning Network is a decentralized system in which members can create special payment channels for carrying one or more micropayments to bypass the blockchain.

Payment channels are located outside the bitcoin blockchain. Transactions are between participants of the channel. After all transactions have been carried out they are sent to the blockchain as a separate transaction. As soon as the payment channel is closed, the transactions are sent to the main network.

Thus, regardless of the number of executed transactions to the blockchain appeal only twice, in the opening and closing of the channel.

The number of nodes in the network LN is steadily growing. At the time of this writing, the LN has more than 67 nod and 128 channels, working in core network bandwidth 133758803 Satoshi (about 17.128, $ 16).

The following graph visible progress LN

Of course, the technology of Lightning Network is still experimental. However, a growing number of gcd and channels that are already being tested suggests that full implementation is a matter of time.

Lightning Network, combined with Segwit, Schnorr Signatures and other technologies are concrete steps aimed at solving the most pressing problems in the Bitcoin network: scalability issues.

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