Hi everyone,
I just wanted to talk about a very interesting interfacing point that smart contract development has with the Lightning Network. Of course, many of you know that the Lightning Network is essentially a layer 2 Bitcoin solution that is aimed at facilitating transactions at a much faster rate and considerably lower fees. Now, the question is that how does that interplay or relate to smart contracts?
The main benefit of building smart contracts on the Lightning Network is tremendous savings in fee. New territories of microtransactions and application areas that otherwise proved too expensive are opened up.
As the Lightning Network runs off-chain, it will provide near-instant transactions. It’s particularly beneficial for those applications that are expected to respond promptly, such as gambling and financial services.
Furthermore, the underlying privacy capabilities in the Lightning Network can also assist in further securing smart contracts, making details of such transactions difficult for third parties to trace.
No doubt, smart contract development on the Lightning Network provides wonderful transformative opportunities for both businesses and users. Further discussion of this exciting subject is due!
Awaiting your thoughts!