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Author: Admin | 2025-04-28
The Bitcoin Lightning network is a second layer network that allows for cheaper and faster transactions. This second layer network enables Bitcoin to scale to millions of transactions per second at a fraction of the cost. In order to interact with the Lightning network one needs to connect to a Lightning network node. Wallets, point of sale systems, applications, etc. all connect to a node in order to transact on the network. In order to run a Bitcoin Lightning node one needs to run a Bitcoin blockchain full node. The Lightning network needs to transact with the Bitcoin blockchain network to confirm final settlement of transactions. So in this tutorial we will detail how to setup a full Bitcoin blockchain node and a Bitcoin Lightning network node.One would host a Bitcoin blockchain node and Lightning network node for the following reasons:Contribute to the growth of the Bitcoin networkMaintain full custody of your BitcoinDirect access to the blockchain to self verify transaction dataEnable Bitcoin transaction privacyPrevent nefarious parties from changing Bitcoin code by not accepting software updatesEarn SATS by routing payments on the Lightning networkAllows one to be their own central bankThe Bitcoin blockchain & Bitcoin Lightning networkThe Bitcoin blockchain is typically referred to as layer 1 or the base layer. Miners process transactions on the base layer and can process approximately 10 transactions per second. The Lightning network is referred to as layer 2 and can theoretically process millions of transactions per second. Transacting on the Lightning network are sent to the Bitcoin blockchain to complete final settlement.Bitcoin Lightning Network High Level Process FlowWallets, point of sale systems, applications, etc. connect to a Bitcoin Lightning network nodeWallets, point of sale systems, applications, etc. can also connect directly to the Bitcoin networkWallet addresses are created on the Lightning network and can
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