Lightning Network
A Layer 2 payment network built on Bitcoin that enables fast, low-cost transactions through payment channels.
In-Depth Explanation
Lightning creates payment channels between parties where many transactions occur off-chain, with only channel open/close transactions hitting the blockchain. Payments can route through multiple channels. Lightning enables Bitcoin micropayments but requires channel liquidity management and online nodes. Adoption is growing for payments and remittances.
Related Terms
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Bitcoin
BTCThe first and largest cryptocurrency, created by Satoshi Nakamoto in 2009 as a peer-to-peer electronic cash system.
Hashed Timelock Contract
HTLCA smart contract that locks funds with two conditions: a cryptographic hash preimage and a time deadline.
Off-Chain
Transactions or computations that occur outside the main blockchain, often for speed or cost efficiency.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.