Welcome to The Bitcoin Layer, where we bring you research, analysis, and education for all things bitcoin and macro. In this episode, Nik explains how Lightning Network works using easy-to-understand analogies to the dollar and VISA. Learn why bitcoin’s speed and capacity limits are essential to preserve its neutrality. Explore the concept of layered money. 0:18 Cargoship analogy to describe bitcoin 1:17 Why we pay transaction fees to use bitcoin 2:04 Is bitcoin slow and limited? 2:40 Comparing bitcoin to the dollar and VISA 3:23 Bitcoin's most valuable characteristic is its decentralization 4:18 Bitcoin is neutral money 4:35 Lightning Network is the second layer of bitcoin 5:21 Lightning Network uses smart contracts, not credit 6:11 Understanding how Lightning Network works 7:10 Why Lightning Network is so important for bitcoin 8:53 Thank you to sponsors Zebedee and Voltage New YouTube episodes every Tuesday and Thursday. New Substack posts every Wednesday and Friday. Thanks to our Sponsors! ZEBEDEE: https://zebedee.io/ VOLTAGE: https://voltage.cloud/?utm_source=bhatia&utm_medium=layer&utm_campaign=substack Subscribe and turn on notifications for TBL on YouTube. Subscribe to TBL on Substack: https://thebitcoinlayer.substack.com Follow TBL on Twitter: https://twitter.com/TheBitcoinLayer Follow TBL on LinkedIn: https://www.linkedin.com/company/TheB... Contribute to The Bitcoin Layer via Lightning Network: thebitcoinlayer@zbd.gg Nik Bhatia's Twitter: https://twitter.com/timevalueofbtc Research Associate Joe Consorti's Twitter: https://twitter.com/JoeConsorti Strategist Matthew Ball's Twitter: https://twitter.com/matthewrball Block Height 741726 #TheBitcoinLayer #NikBhatia #Bitcoin #BTC #Lightning #LightningNetwork #Finance #Economics #EducationSubscribe to The Bitcoin Layer on Soundwise