The "What is Money?" Show Bitcoin’s Trojan Horse: Lightning Network Masterclass w/ Jesse Shrader
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Sep 26, 2025 In this engaging session, Jesse Shrader, founder of Amboss and a Lightning Network expert, unpacks the intricacies of Bitcoin's Lightning Network. He explains how this layer-two technology enables off-chain microtransactions and tackles liquidity challenges. The conversation dives into privacy benefits, the importance of scaling solutions, and how Amboss utilizes data to enhance Lightning's efficiency. Jesse also reveals how incentivized liquidity can accelerate Bitcoin's adoption, shaping its future as both a monetary tool and a platform for diverse applications.
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How Lightning Scales Bitcoin
- Lightning creates off-chain channel relationships to update balances without touching Bitcoin's blockchain for each microtransaction.
- Channels open and close on-chain only when starting or ending the relationship, enabling massive scalability.
Buying Coffee In Madeira
- Robert recounts using Phoenix wallet in Madeira to buy coffee with Lightning faster than a credit card.
- That user experience convinced him Lightning works as a practical medium of exchange.
Liquidity Is The Routing Bottleneck
- Lightning payments hop across linked channels and require nodes to both receive and send liquidity to route payments.
- Routing success depends on nodes' liquidity distribution across the network, not just single channels.
