The Bitcoin Lightning Network: Explained in simple words
Before we dive deep into the world of Bitcoins and the lightning network, it is imperative we understand the concept of blockchain. A blockchain is nothing but a digital record of transactions that is distributed across a network of computers. Each block on the chain contains a number of transactions, and every time a new transaction is added, a new block is added to the chain. Once a block is added to the chain, it cannot be altered. This ensures that all transactions on the blockchain are fixed and tamper-proof.
Blockchain is the foundation of various cryptocurrencies like Bitcoin, Ethereum, and Litecoin. It is used for a range of other purposes such as supply chain management and digital identity verification.
Cryptocurrency and Bitcoin
A cryptocurrency is a form of currency that exists digitally or virtually. It uses cryptography for secure transactions. The first cryptocurrency was Bitcoin. It was introduced to the world in 2009. Cryptocurrencies operate independently of a central bank or government. They do not require central issuing and remain unsupervised by any regulating authority. Bitcoin remains the most popular cryptocurrency till date.
Cryptocurrencies use decentralized systems i.e. blockchain technology to carry out and secure transactions. Direct peer-to-peer transactions are undertaken with cryptocurrency holders. This means that there are no middlemen, banks, or payment getaways.
Cryptocurrencies are used as a replacement for physical money. They can be easily carried around and exchanged in the real world. Payments made using cryptocurrency exist purely as digital entries to an online database.
What is a Microtransaction, and how is it related to the Bitcoin Lightning Network?
Small financial transactions are referred to as Microtransactions. They are usually of low monetary value. In the context of the Bitcoin Lightning Network, microtransactions are small chunks of payments that are made between users within a payment channel. In this case, individual transactions are not recorded on the blockchain.
This setup can be useful for small, frequent transactions such as buying a cup of tea or an online purchase on an e-commerce app. Here the transaction fee for a traditional Bitcoin transaction would be disproportionately large compared to the amount being transferred.
Get rewarded in Bitcoins by using the sMiles BTC app.
The sMiles app rewards you for staying healthy and it is making use of the Bitcoin Lightning network – solves the question of how to get free Bitcoin. Leading an active lifestyle is quite difficult. One has to feel motivated or even lured into gaining something in return for exercising or staying active.
The sMiles BTC app was devised and designed to do the same. Do you love shopping or playing chess online? Do you go for morning jogs or long evening strolls? If the answer is ‘yes’, you will surely love the sMiles app.
The app pays users with Bitcoins for the little things they already do in their everyday lives. However, the primary focus of the app is to reward and motivate the users for being healthy and agile through exercise and continuous movement.
Additionally, one can also earn Bitcoins by playing virtual games, responding to surveys, or doing tasks recommended by sMiles partners.
How to download and use the sMiles BTC app?
It is very easy to download and set up the app. Here’s a step-by-step guide of the same:
- Download the sMiles app from an Android or Apple phone.
- Create and confirm an account using your email address.
- The sMiles app integrates with HealthKit on the iPhone, and presumably, a similar integration occurs with a health-tracking app on an Android phone.
Additional points to remember:
- 100 million Satoshis (Sats) = 1 Bitcoin.
- A Satoshi is the smallest denomination of Bitcoin.
- The user has to engage with the app, regularly.
- The reward amount will vary according to the location and Bitcoin/USD exchange rates.
- Highly active users are most likely to receive Bitcoin awards.
