Hello world, as we are in the 21st century we have seen much developments in science and technology.
Even our currency became digitalized. Cryptocurrency is one simple example of that.
Cryptocurrency is a virtual currency or alternative currency which have no physical existence but.
In today’s context, there are several crypto coins available in the Cryptocurrency world but . Some of the Cryptocurrencies present in the Cryptocurrency world are highlighted below:
What is Bitcoin?
Bitcoin is a digital currency or a virtual currency which was the first decentralized Cryptocurrency which was created in 2009 by a Japanese citizen named Satoshi Nakamoto.
Simply, Bitcoin is an electronic currency which . Bitcoin can be easily sent to any user on the peer-to-peer Bitcoin network and there is no any need or importance of intermediaries.
You don’t need any payment gateway or banking institution to transfer bitcoin from one user to another, it is all done electronically. Bitcoin is one of the most popular Cryptocurrency in the world which have no any physical existence, it is simply produced or originated by the computer through a software.
For example: If you want to purchase any goods or services and the owner of goods or services agreed to accept bitcoin then you can pay this Cryptocurrency electronically, It is beyond the control of any institution.
What’s the difference between Bitcoin and the physical currency or traditional currency?
Everyone is curious to know the difference between the Bitcoin and the physical currency. So, the major difference between them are highlighted below:
No any control:
As traditional or physical currency is controlled by the financial institution but Bitcoin is decentralized and it does not need any intermediaries to transfer it from one user to other. It is all done electronically
In a traditional payment system the identity of the users is verified by the banking institutions. But in the case of Bitcoin user’s identity are not verified This is one of the
Another main difference between bitcoin and traditional currency is immutability. In a transaction of physical currency or traditional currency the amount transferred can be reversed but in the case of bitcoin, As it is not controlled by any institutions and the transaction process is done electronically. So it is quite impossible to reverse money but
Thus, above mentioned three points are the major difference between the bitcoin and the physical currency.
What is Lightning Network?
Scalability is one of the most challenging problems of bitcoin and of other cryptocurrencies.
Previously bitcoin was which was good at that time but in the present scenario, it is not sufficient so to overcome from this problem Lightning Network is developed or created.
Lightning Network is a network which helps to facilitate a financial transaction at a lightning speed. , it helps users to transact at a very high speed. The Lightning Network has
At first Lightning, Network was developed for use on bitcoin but in today’s context, lots of other cryptocurrencies like
How the Lightning Network works?
Lightning Network works by simply which has multiple payment channels between bitcoin users.
So from this payment channels, the users can easily conduct a financial transaction
Plasma of Ethereum:
Plasma of Ethereum is very much similar to the Lightning Network.
The developers of Plasma are. They both developed Plasma to facilitate the smooth financial transaction. Plasma of Ethereum helps users to purchase tokens, cryptocurrencies, and the real goods and services at a very high speed.
One of the major similarities between Lightning Network and Plasma of Ethereum is that in both frameworks users do not need to identify or know or trust the other users to whom they are transacting, we can say . Plasma of Ethereum also plays a vital role in solving the scalability problems same as a Lightning Network.
What’s the difference between these two Frameworks?
So this is one of the most emerging questions in the crypto world. Everyone is curious to know the difference between these two frameworks. So below are some points which can differentiate Plasma of Ethereum and Lightning Network:
- The Lightning Network is whereas Plasma of Ethereum is
- Another difference between them is that Lightning Network facilitates between the same parties whereas Plasma of Ethereum is . It’s literally BlockChains which helps to do transaction between other address too.
- In terms of speed, It is instantaneous that means confirmation is not necessary for Plasma of Ethereum.
- Another simple difference between these two is that Lightning Network is mainly developed to solve the scalability problems of Bitcoin blockchain and Plasma of Ethereum is developed to solve the scalability problems of Ethereum blockchain.
Therefore, above-mentioned points are some differences between the Plasma of Ethereum and Lightning Network.
In a conclusion, Bitcoin is a world most popular and world first virtual currency which helps users to do financial transaction electronically.
Both Lightning Network and Plasma are similar to each other, they both are developed to solve the problem of scalability of the Cryptocurrencies. However, there are some points which differentiate both of them and we have already discussed them in the above paragraph.