I know BTC is king, and I know BTC and LTC are leading lightning network and I know XSN is one of the only projects innovating on lightning besides the other 2. However, I am unsure why it matters?Can someone explain to me why lightning matters? How does it work?
Why is masternodes collateral necessary?
Stakenet's idea is to put its second layers - the Masternode (MN) network and the Lightning Network (LN) - at the service of each other, and to bridge between the different blockchains with Lightning Network.
Stakenet's MN will be:
- LN nodes, providing more decentralization to the LN.
- LN watchtowers, offering more security to the LN.
- Bridge nodes between the different blockchains with Lightning Network (BTC, LTC, ...).
Stakenet's MN will use their collateral to provide liquidity to LN, i.e. instead of having the collateral 'stuck' in the MN, it will be used to open large LN channels in order to route LN payments.
Stakenet will offer Lightning Swaps, i.e. swaps between two different cryptocurrencies on the Lightning Network.
Lightning swaps - which are off-chain and therefore instantaneous and with little fees - should not be confused with Atomic Swaps which are on-chain and therefore slow (need to wait for confirmation on both blockchains) and expensive in fees.
Lightning Swaps will be the basis of Stakenet's Decentralized Exchange (DEX), which will run on Stakenet's Masternodes.