Ethereum: Single-hop Payment vs Multi-hop payments

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Ethereum: Single-hop vs. Multi-hop Payment

As a beginner getting to know the Lightning Network, one of the most frequently asked questions is: “What are single-hop and multi-hop payments in Ethereum?” In this article, we will look at the differences between these two types of payments to help you understand how they work.

Single-hop Payment

A
single-hop payment

is a type of transaction on the Ethereum network in which a sender initiates a transfer of value from their wallet to another user. The recipient receives the funds directly, without having to go through other nodes or relays on the network.

Here’s an example: Alice wants to send 10 Ether (ETH) to Bob, and she can use the Lightning Network to do so without having to go through any intermediate nodes.

Multi-hop payments

A
multi-hop payment

, on the other hand, is a type of transaction where multiple transactions must be made in sequence. The sender initiates two transactions: one that transfers value from their wallet to another user (the first hop) and one that transfers value through multiple nodes on the network (the second hop).

Here’s an example: Alice sends 10 Ether to Bob, but she also wants to send 5 more ETH to Charlie. To transfer these funds from Bob to Charlie, she will need to make two separate transactions: one from Bob to the relay node (hop 1) and one from the relay node to Charlie (hop 2).

Key Differences

So what are the key differences between single-hop and multi-hop payments on the Ethereum network?

Conclusion

In conclusion, understanding the difference between single-hop and multi-hop payments on the Ethereum network is essential for building robust and efficient decentralized applications (dApps) using the Lightning Network. While single-hop payments offer faster execution times and lower relay node costs, multi-hop payments provide greater security and reliability due to the additional layer of protection provided by multiple relay nodes.

I hope this article helped you understand the basics of single-hop and multi-hop payments on the Ethereum network!

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