Blockchain open sources Thunder network, paving the way for instant bitcoin transactions

Blockchain, the company behind the world’s most popular bitcoin wallet, has been quietly working on an interesting project called Thunder. The Thunder Network is a network of alternative nodes that allows you to make off-chain bitcoin payments in seconds and stabilize back to the occasional bitcoin blockchain. And it got me excited about bitcoin again, which sounds complicated but it’s pretty neat and can be a powerful innovation for bitcoin transactions. But first, let’s take a step back. Read: What is the Thunder Network If you’ve ever tried sending a few bitcoins from one wallet to another, you know it can take ten or twenty minutes before the blockchain confirms the transaction. This is blockchain which is a network of servers that share the same record of transactions. When you send two bitcoins, all the nodes in the blockchain will write a line with this transaction so everyone can confirm that the original wallet has lost two bitcoins and the destination wallet now has two more bitcoins. This is great and this is what makes bitcoin completely decentralized. Last year, Joseph Poon and Thaddeus Dryja wrote a paper on bitcoin’s speed and scalability issues as well as defining the Lightning network. These alternative networks will run independently of the main bitcoin blockchain and can register transactions in as little as a second. It uses smart contracts so that all nodes in the Lightning network do not need to know about all transactions. Blockchain hired Mats Jerratsch and started working on implementing the Lightning network. This is what the company is announcing and opening sourcing today. Thunder is the first implementation of a Lightning-type network. Blockchain already running Thunder nodes, and other bitcoin companies can view the source code, provide a Thunder wallet, adopt this network, or fork it. Thunder can also work with other cryptocurrencies. And the startup made its first live transaction on Thunder. While Blockchain will not use Thunder for Blockchain wallet users, the startup has been thinking about the real-life advantages of a solution like Thunder.With Thunder, a transaction is so fast that the network can handle 100,000 transactions per second. On average, Visa processes 2,000 transactions per second, and the Visa network is capable of handling 56,000 transactions per second. Read more: what is the tum used for | Top Q&AT To put this into perspective, Blockchain wallet users are on track to make 40 million transactions this year, or about 1.3 transactions per second. Pretty impressive, but let’s be honest. While there are many other wallets out there, as Blockchain is the most popular wallet maker, bitcoin transaction volume is far behind Visa. The reason for this is that bitcoin transactions are too cumbersome. So I believe projects like Thunder are part of the solution. It is also important that transactions become a lot cheaper thanks to Thunder. Once you complete your Thunder payments to the bitcoin blockchain, there are still fees associated with the blockchain. But you can do a lot of Thunder transactions before going back to the blockchain – and Thunder transactions don’t involve many nodes. If you divide the fee by the number of Thunder transactions, it becomes much cheaper to pay with bitcoins. Fees are so cheap that you can finally imagine doing microtransactions in bitcoin. So Thunder will make bitcoin a viable alternative to Visa. It removes many of the limitations behind the current bitcoin protocol. For now, there are still some barriers. Thunder cannot work with anyone with a bitcoin wallet because the bitcoin core development team needs to release separate witness and CHECKSEQUENCEVERIFY features. But the good news is that these features are on the roadmap and the core team wants to make the Lightning network possible. Until then, Thunder depends on trusted nodes. But with future bitcoin updates, Thunder could become a full-fledged Lightning network. Many people have turned to alternative cryptocurrencies like Ether due to the limitations of bitcoin. Slowly but surely, the bitcoin community is catching up and making bitcoin payments more attractive. Read more: What zodiac sign is July 25?

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