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Lightning Payments on the Bitcoin Blockchain
Bitcoin transactions are bundled using “payment channels” off-chain, i.e. tracked by each lightning node (a node is a single running instance of the Lightning software) and recorded on-chain when a node wishes to exit the software and/or record a set of bundled payments at once, through means of an on-chain transaction.
This means that typically users that transact frequently using Bitcoin can update debits/credits between their counterparty in a trustless manner over Lightning and then “cash-out” or settle by making a single on-chain payment instead of hundreds or thousands of smaller on-chain payments for each transaction.
Routing crypto payments on the Lightning Network API
If Bob wants to pay Alice and both are network participants, i.e. each runs/uses a node, payment routing is fundamental to the core of the software in a trustless way such that Bob and Alice need not be directly connected and can instead find a path through the maze of “payment channels” to get paid or pay with Lightning Network.
For example, John has an open channel with Jonathan, who has an open channel with Marco, and who does not have an open channel with Frank. In such a scenario, Frank can send the payment to Marco through John. The routing of payments over the Lightning Network may involve several hops, but the core Lightning implementations automatically search for the shortest and/or most cost-efficient path available.
How to use Lightning Network for small transactions?
Ideal for small-scale transactions and large numbers of transactions, the Lightning Network offers an instant payment solution for amounts as low as on the order of 1 milli satoshi. Lightning network transactions are particularly useful for micropayments, eliminating the usual confirmation delays associated with traditional Bitcoin transfers improving the transaction speeds, and cutting the high fees related to the on chain transactions.
Deposit & Withdraw Bitcoin with Striga's Lightning Network API
Striga’s Lightning Network API allows easy integration of the Lightning payments into business models, simplifying efficient Bitcoin deposit and withdrawal processes. This integration ensures full compliance with EU regulations, allowing you to onboard users that can deposit/withdraw/buy/sell/spend Bitcoin via Lightning and on-chain transactions, as a basis point for your broader payment application.
Experience the Lightning Network on Striga’s sandbox and consider its potential for your business needs.
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