4min chapter

Swan Signal Live - A Bitcoin Show cover image

Lyn Alden: Bitcoin's Energy Usage Isn't a Problem. Here's Why.

Swan Signal Live - A Bitcoin Show

CHAPTER

The Lightning Network: Layer Three Developments

Lightning is an open-source sidechain of Bitcoin meant for large entities like exchanges to settle Bitcoins with each other in a faster and less expensive way. Liquid can't fully replicate the rock-solid security and decentralization level of the Bitcoin base layer, but it has much faster transaction throughput and has a reasonable degree of security and decentralisation. With liquid, Bitcoins get locked up into LBTC tokens with a peg-in transaction and those LBTC tokens can run on this sidechain with faster settlement times until an entity decides to unlock the Bitcoins from that chain and bring them back to the base layer by doing a peg-out transaction. There are also DeFi projects that run on Bitcoin using

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