Lightning - The Internet of Bitcoin

November 13, 2021

Context

I was listening to a podcast where @jackmallers referred to lightning network as the internet of bitcoin.

The Internet of Bitcoin

I wanted to see if I could explain it to make sure I fully understood it.

protocol, in computer science, a set of rules or procedures for transmitting data between electronic devices, such as computers

The modern internet is built on top the protocol TCP/IP.

The Internet protocol suite, commonly known as TCP/IP, is the set of communications protocols used in the Internet and similar computer networks.

Someone came up with a standard (in this case TCP/IP) by which different computers can communicate
There were many other competing protocols but this one won out
The modern internet is built on top of these protocols
If these protocols were to disappear, the modern internet would disappear

Bitcoin is really just a set of rules. Here’s a few of them.

There will never be more than 21M bitcoin
I own bitcoin if I have a private key (256 bit secret number) to a wallet with bitcoin in it
New bitcoins are created using computers that expend large amounts of electricity

Lightning is built on top of Bitcoin.

It makes it cheap, fast and simple to send payments across borders.

This will enable a generation of entrepeneurs to build applications that weren’t possible.

That’s why it’s the internet of Bitcoin.