This is a transcribed excerpt of the “Bitcoin Journal Podcast,” hosted by P and Q. In this episode, they’re joined by Nate of Voltage to chat about how the Lightning Community can transfer price straight between two parties without having to possess an intermediary. The Lightning Community will allow the Bitcoin community to scale exponentially into the payments world.
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Q: What does “Layer 2” mean? Might maybe we equate it and give examples encourage to the latest files superhighway infrastructure and the map we work along with that to create it digestible? I chanced on that explanation is most pricey.
Nate: So the secure is decentralized files. Bitcoin is decentralized money. When the secure used to be first being establish collectively by geniuses 40-50 years ago, they [engineers] had been exact mad to pass bits and bytes to diversified college campuses. None of them had any opinion of tune streaming, video streaming, what we’re doing appropriate now, none of that used to be that it is probably you’ll presumably focal level on.
Diversified protocol layers had to be built on the secure on the TCP/IP protocol. I’m no longer an knowledgeable on it, nevertheless what we’re doing appropriate now is interacting with 5 or 6 layers of that defective files superhighway protocol. That increases issues fancy throughput, bandwidth and quality, all that roughly stuff.
So the secure is this layered cake that it is probably you’ll presumably visualize. It’s probably you’ll presumably Google “files superhighway protocol layers,” and I’m glorious sure there’s some frosty graphics for that. And Bitcoin is finest a miniature bit of over 12 years old style now or something? Layer 1 is giant. It’s miles extremely secure. It’s immutable, censorship resistant, all these really frosty aspects. However the throughput has an plan back whereas you impose world finance on prime of it.
Layer 2 is this opinion the attach it is probably you’ll presumably assemble bitcoin transactions without having to non-public the blocks or jam up the pipes of the defective layer. We might per chance presumably tranquil have that security apparatus in a map, nevertheless furthermore collect the fast settlement and finality without having to work along with that [base layer]. Lightning Community is one proposal of that block.
Blockstream has something called the Liquid Community the attach you in overall exact transfer bitcoin off of the Bitcoin defective layer — you’d also very smartly be no longer definitely doing that, nevertheless that helps you visualize it. Lightning is similar, nevertheless diversified on tale of Lightning has this selection of node gossip community device. It’s exact about taking the the same idea that labored for the secure and applying it to this contemporary money on tale of bitcoin is the money of the secure, on the other hand it is furthermore the secure of cash in that respect.
