To open a channel on the #LightningNetwork, one has to create a smart contract on the #Bitcoin chain.
#LN is Bitcoin.
Discussion
If Lightning isn’t #bitcoin then what the heck is all this bitcoin doing on our nodes?
What do bitcoin nodes have to do with lightning? I am just trying to understand how this works.
#[5] just told you. What part are you seeking clarification on?
#[6]
A bitcoin node that runs the Lightning Network protocol creares timelocked multisig transactions called channels using bitcoin to enable very low or even no-fee forwarding of payments between peers. The transactions have immediate final settlement, can be withdrawn and spent, and when the channel is closed, the transaction is broadcasted to the bitcoin blockchain. There is no token used other than satoshis, the smallest units of bitcoin.
Thanks
This video might help too.
Thanks for explaining. My understanding was that bitcoin does not support smart contracts. At least ones that are turing complete like solidity. What is the purpose of blockstacks? I would like to understand bitcoin better.