1. Scaling the Blockchain:
Lightning Network
Nikolay Angelov
Blockchain Developer

2. Blockchain
Has Issues with Scaling

3. Transaction throughput-
Block Size
1 MB + -
Block Time
~10 Minutes

4. Transaction throughput
tps
transactions
second
per

5. Transaction throughput
Bitcoin
7 tps
Visa handles tps
Capacity Up-to tps

6. Transaction throughput
We need Bigger throughput

7. Nikolay Angelov Blockchain Trainer Software Engineer
Gamer - FOR THE HORDE!
/ghkgk
/in/Thedi

8. Transaction throughput10 -
Block Size
1 MB + -
Block Time
~10 Minutes
Seconds

9. Lightning Network

10. Lightning Network
Layer 2
Off-chain Approach
Payment Channels

11. Lightning Network Bar Bob 5 BTC 0 BTC
Source:
Bar
Bob

12. Blockchain (Layer 1) Bar Bob 5 BTC 0 BTC 5 BTC 0 BTC 4 BTC 1 BTC 2 BTC
Source:
Bar
Bob

13. Blockchain (Layer 1) Bar Bob 3 BTC 0 BTC 2 BTC 5 BTC 5 BTC 0 BTC 4 BTC
Source:
Bar
Bob

14. Lightning Network Peter Bob The Office is Boring
Let’s go to my favorite Bar
The Office is Boring
GO GO GO
15 BTC
20 BTC
Peter
Bob

15. Bob Bar Peter 5 BTC 0 BTC 15 BTC Round on me 20 BTC
Source:
20 BTC
Bar
Peter

16. Lightning Network
No need of Trust
You can recover at Any Time

17. Lightning Network Reduces the load on the Chain
Removes Small transactions

18. Lightning Network

19. Lightning Network
4,200 Nodes
12,500 Channels
450 BTC Locked

20. Basis of Lightning Technology (BOLT)

21. Lightning Network Run your Own Node

22. Thanks! Nikolay Angelov Any questions? Find me @
/ghkgk
Any questions?
/in/Thedi