Break up Bitcoin (BTC) transactions via Lightning Network for large amounts

By MichDon | MichDon | 16 Apr 2020

Bitcoin developers announced multi-part payments for the Lightning Network. This update makes it easier to send larger amounts of bitcoin (BTC).

These functionalities were previously announced and are now in LND 0.10. LND is the application of Lightning Labs for the Lightning Network, a kind of operating system for Lightning.

Split transactions

Simply put, multi-part payments allow you to split your transactions. The Lightning network depends on nodes (pawns in the network, computers) that transmit transactions, but there must be enough BTC available for this.

A node with 1 million satoshis cannot forward a transaction of 10 million satoshis. If you can cut a transaction into small parts, several small nodes can process the larger transaction together.

Big payments

Large payments cause problems on the Lightning Network, there is still relatively little liquidity. Currently about 950 BTC is used on the network.

A transaction that normally could not be processed can be popped up on the network with multi-part payments.

In addition to the advantage for large transactions, this option can also be interesting in terms of privacy. When you divide and split transactions across multiple nodes, less information is available to everyone.

Maximum number of routes

Question: What is the disadvantage of splitting your transaction over as many nodes as possible?

The more routes you use, the more likely you are to split the transactions even more often. It is not yet a foregone conclusion which is better, as the work is still in the initial phase of this network.

But more options and more choice is always good. And that is what multi-part payments do.

My articles:

Resources

https://twitter.com/joostjgr

Cryptocurrency Bitcoin (BTC) Crypto BTC lightning network

MichDon

Crypto entousiast, father, taekwondo

MichDon

Crypto-enthousiast dad with an aim to try to inform readers of new and interesting projects, upgrades and updates to projects and of course any news of interest on the Crypto spectrum.