This article will explore Lightning Network and how you can withdraw Bitcoin from AADS in just 1 second using the Lightning.
What is Lightning Network?
According to Investopedia, BTC-Lightning, also known as the Lightning Network, is a second-layer technology for Bitcoin (BTC) that aims to address the issue of slow transaction speed on the Bitcoin blockchain. It helps to enable faster and more cost-effective transactions by introducing off-chain and micropayment channels.
The Need for the Lightning Network
To understand why the Lightning Network was developed, let's consider the main disadvantages of the standard Bitcoin network:
Low speed of transaction processing
Transactions on the Bitcoin network can take from 8 minutes to several days, depending on the network's workload and the transaction fee set at the time of sending.
High cost of transactions
Transaction fees on the Bitcoin network can vary from 200 satoshis to 30,000 satoshis or more.
Low anonymity of transactions
Special services can potentially reveal the identity of the sender or receiver of a Bitcoin payment.
The Lightning Network addresses these issues in the following ways:
- High speed of transaction
With the help of the Lightning Network, users can make transactions in as little as 1 second on average.
- Low cost of transactions
The average cost of a Lightning Network transaction is around one satoshi.
- High anonymity of transactions
Lightning transactions are not stored anywhere, which makes it difficult to determine the identity of the sender and receiver and their balance as quickly as possible on the standard Bitcoin network.
How to Withdraw Funds to a Lightning Wallet from AADS
If you don't have a wallet that supports LNURL payRequest or Lightning Address, you will need to obtain one. Currently, there are various mobile applications available for creating a Lightning wallet.
You can find a list of wallets that support Lightning Addresses via the link.
The simplest and quickest way to set up a wallet that supports Lightning is the app Wallet of Satoshi
Now that you have your Lightning wallet ready let's move on to the next steps for withdrawing funds from AADS:
Click on "Withdrawal options" in the Finances section in the user dashboard.
In the window that opens, select the "To lightning network" option and fill in the required fields in the form.
Follow the link that was sent to your email.
To confirm the new address, you need to click the confirmation link that we've sent to your email. The link is valid for 24 hours.
What if I don’t receive the confirmation email?
If you do not receive the confirmation email, we recommend checking your spam folder, as it may have been mistakenly filtered there. If you do not find the email in your spam folder, please proceed with requesting a new confirmation email.
Requesting a New Confirmation Email
You can request a new confirmation email 15 minutes after your initial attempt. Simply follow the instructions to initiate the request and ensure the email is sent to your designated inbox.
If you encounter difficulties or still do not receive the second email after the request, we kindly ask you to contact our support team.
They will help you throughout the process and resolve the issue promptly.
After three days, your new withdrawal method will become active, and you can go to the Finances => My Finances page and click Withdraw all funds.
In a couple of seconds, the funds will be in your wallet.
How else can you spend your withdrawals via BTC Lightning?
- Buying gift cards on Bitrefill
https://www.bitrefill.com/ is not a wallet, but they create lightning addresses for their users to deposit to. You can also withdraw money from AADS and buy gift cards on them.
- Payment for purchases in physical stores
If you start a wallet in CoinCorner, you can order an NFC card from them to purchase in stores.
Here, you can find a map with markings of places where they accept Lightning as payment: https://btcmap.org/.
Takeaways
- The Lightning Network is a cutting-edge technological solution designed to address the challenge of slow transaction speed on the Bitcoin blockchain. By implementing off-chain transactions, the Lightning Network aims to significantly improve the speed and efficiency of Bitcoin transactions.
- By bypassing the reliance on a centralized intermediary, the Lightning Network streamlines transaction routing and reduces the associated delays and costs.
FAQ
What is the Lightning Network?
The Lightning Network is a payment protocol for utxo-based cryptocurrencies like Bitcoin or Litecoin. It is a second-layer solution that enables instant off-chain transfers of cryptocurrency ownership without the need for a trusted third party. The Lightning Network helps achieve efficient payments without compromising the security model of the underlying blockchain.
Does the Lightning Network have its token?
No, the Lightning Network does not have its own token. Instead, it uses the token of the underlying network/blockchain. For example, the Bitcoin Lightning Network uses Bitcoin and its smaller denomination, satoshis. There can also be Lightning Networks for other cryptocurrencies like Litecoin.
What are some possible problems or challenges related to the Lightning Network?
Some possible problems or challenges related to the Lightning Network include the need for larger payment channels (which has been addressed with the introduction of "Wumbo" channels), integration with cryptocurrency exchanges and financial services platforms, and the role of watchtowers in preventing fraud within the Lightning Network.
