We were one of the first exchanges to implement sending and receiving bitcoin via the Lightning Network on our platform. Sending via the Lightning Network makes it easy for CoinCorner users to deposit and withdraw bitcoin to/from an account off-chain with no fees on our side.
What is the Lightning Network?
The Lightning Network is a second-layer technology built on top of the Bitcoin network that uses micropayment channels which allows transactions to be sent and confirmed quicker, allowing transactions to be completed much more efficiently.
A Lightning Network transaction is classed as an 'off-chain' transaction. These are quick and cost-effective, resulting in an almost instant settlement. The Lightning Network takes the stress off the Bitcoin network by reducing the number of transactions being sent, as smaller transactions can be sent off-chain instead.
How does it work?
Any funds sent via Lightning will be routed through Lightning channels to get to their destination. These channels are connected to a number of other channels, however these channels are not linked to every other channel on the network meaning that different routes are available for the funds to take to arrive in the destination wallet. For example, Lightning payments can be sent through the quickest route to the destination wallet, or the cheapest route when it comes to fees. Below is an example of the route funds sent from Wallet A to Wallet Q may take, as Wallet A is not directly linked to Wallet Q itself.
Image credit: Wikipedia
Payments sent will be routed through the required channels and the funds will be transferred from channel to channel until arriving in the recipient wallet. For example, if you are sending 0.005 BTC, the funds will be sent to a wallet you are connected to, and then onwards to the recipient wallet via as many other channels as necessary to reach the destination. This may simply be one, or a more complex route may be required and the funds may be routed through a number of channels.
You can find a guide on how to send/receive via the Lightning Network in your CoinCorner account here.
Have any questions? Get in touch!