Bitcoin: instant payments using the Lightning Network

The Bitcoin blockchain is, by-design, limited in the number of transactions it can process. As a result, the maximum Transactions Per Second (TPS) for bitcoin is approximately 7. As a reference, the Visa network processed almost 600 million transactions per day in 2021. The low Bitcoin TPS is often referred to as a scalability problem. In this talk we will explain how, already today, the Lightning Network (LN) enables instant payments at nearly zero cost, with a TPS of up to 1 million. We will detail how LN functions as a 2 payment protocol, layered on top of the Bitcoin network and how it allows for peer-to-peer bitcoin transfers in a decentralized, trustless environment. The talk is concluded with examples of innovative payment solutions LN can enable in the near future.

After completing his PhD in atomic physics, Robert worked as a consultant in multiple areas of chipcard technology, including e-ticketing systems, contactless payment and mobile payment technologies. The last years he worked for a Dutch cyber security firm. Currently, Robert is a senior product lead at AMDAX.

Robert Meppelink, Product Lead at AMDAX

Maarten van Rooij, Business Development & Sales