Distributed database that is used to maintain a continuously growing list of records, called blocks.
Bitcoin and Blockchain technologies provider Bitfury conducted a successful experiment with Lightning Network technology by sending real bitcoins to the test version of the protocol. This is reported by the Bitcoin Magazine.
Leaders in Lightning: Bitfury’s engineers have completed the first ever bitcoin transaction on the Lightning Network https://t.co/zIosMEaxMz
— The Bitfury Group (@BitFuryGroup) July 20, 2017
As the publication notes, BitFury implementation of the technology is compatible with the current bitcoin protocol and, accordingly, can work without the Segregated Witness (SegWit) protocol.
This is a major accomplishment by our technical team and an important step forward for the Lightning Network and the growth of Bitcoin. The Lightning Network has the potential to solve Bitcoin’s scalability issue and provide instant payment functionality. By demonstrating that the Lightning Network can function now, Bitfury has cleared the way to increased transaction processing and further adoption of Bitcoin. The Lightning Network will be the most effective when used with SegWit, which is why we are fully committed to SegWit’s implementation, and we will continue working on a version of the Lightning Network that is compatible with SegWit.
The Bitfury Group, CEO
Lightning Network represents the decision on scaling bitcoin thanks to which instant and inexpensive microtransactions should become possible.
Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.
During its experiment, the BitFury team created two LN transactions. One of them was a direct transaction from one node to another, which actually simulated the payment channel between the two users. Available here.
The second experiment was to create a single-hop transaction, designed to better simulate the main task of the Lightning Network. Users pay each other through a common third-party trust. Available here.
It is noted that since this was just a test, the developers in both cases limited themselves to only one transaction, although they could create thousands of such transactions without additional costs.
The most interesting thing about the experiment is that it was held with real Bitcoins, in valid protocol.