Lightning Network
A Layer 2 network built on Bitcoin that enables fast, low-fee payments through off-chain payment channels.
The Lightning Network is a Layer 2 payment network built on top of Bitcoin, allowing participants to transact through off-chain payment channels rather than settling every individual payment directly on Bitcoin's base layer.
Only opening and closing a channel typically requires an on-chain Bitcoin transaction — any number of payments made while the channel is open can happen instantly and with far lower fees than an equivalent number of base-layer transactions.
Examples
- Two parties can exchange many small Lightning payments back and forth, with only the channel's final balance settled on Bitcoin's base layer.
- Lightning is commonly used for small, frequent payments where Bitcoin's base-layer fees and confirmation times would be impractical.
Learn more
The Lightning Network Explained
Read the full guide
Payment Channel
Read the Payment Channel glossary definition
Hashed Timelock Contract (HTLC)
Read the Hashed Timelock Contract (HTLC) glossary definition
Watchtower (Lightning Network)
Read the Watchtower (Lightning Network) glossary definition