Cross Blockchain Transactions Using The Lightning Network

Second testing is successfully completed today. Crypto transactions exchanged across Bitcoin and Litecoin Network. A development team at Lightning Labs recently swapped testnet Bitcoins with testnet Litecoins. All this happened using The Lightning Network. No transaction entry recorded on either of the Blockchain ledgers.

This was the second cross Blockchain transaction. First transaction was on-chain where entry was written in Blockchain ledger. The first transaction was relatively slower than the second one. This off-chain atomic swap was faster and have low fees. Such a successful test has opened many doors for trustless cryptocurrency exchanges and multi-coin payment options.

The Lightning Network

The Lightning Network is potentially a second-layer to be deployed on top of Bitcoin. Open source Lightning Network can be easily integrated with any type of coin. People on another blockchain can pay as a Bitcoin and the receiver will receive equivalent Litecoin.

Both Bitcoin and Litecoin were not compatible in the beginning of this year for such deployment. However, in 2017, after a soft fork, it became compatible. Now the testnet versions of both blockchains are using the lightning network. Users can transact from one type of coin to the other.

It is faster, cheaper and a very private solution to make a transaction. It opens up the possibility of everyone act as an exchange. The one who offers low fees will win. Undoubtedly, it will give a lot of benefits if implemented on all major cryptocurrencies.

Merchants will have the option to choose any cryptocurrency and buyer will spend with any type of coin. Also, we will not be paying high fees to exchange will take this route to make a payment between different coins.

Here are the links to the blog post and video for more details.

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