Goldman Wins Patent For Its Own Cryptocoin Technology

Yeah but if you are a company that has hundreds or thousands of transactions a day it would make sense to use the LN instead right ?

EG: Instead of tens of small transaction's such as your Coffee buy or Hair loss lotions etc, say you have 5000 transactions a day or 50.000 transactions a day.
Lightning network allows all of those transactions for the concerned company to be transacted in one single transaction instead of each transaction having to become a separate single transaction at cost and each single transaction having to bear a separate cost on the chain rather than a conglomerate group of transactions.

The company can lodge all transactions at once for a single cost for all, and still have all the transactions recognized by the block.

That is it's whole purpose.

 

It's a two way agreement, so the company will have to convince the customer to open up a lightning channel with them. If I'm a customer that doesn't frequently buy at shop x then it makes no sense for me to do that. Remember money has to be pre-funded. So in reality there is no way a shop can get all their customer to use LN. It will only be for the customer that frequently buy from shop x.

Where LN really starts so have a big effect is say between two big finance companies that maybe trade back and forth between each other.

Another thing is how much will lightning fees end up costing? Because it has to be profitable enough for someone to run as a lightning node. Remember bitcoin was once free to do transactions, but as more people used it that changed. It's all still very new, so I guess we just have to wait and see how it all develops.