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Lightning Network
Layer 2 payment channels enabling instant, near-free Bitcoin transactions. Scalability solution for everyday use.
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What is the Lightning Network?
The Lightning Network is Bitcoin's Layer 2 scaling solution. It enables instant, near-zero-fee Bitcoin payments by creating payment channels off the main blockchain.
The Scaling Problem
Bitcoin's base layer processes ~7 transactions per second. Visa processes ~24,000 TPS. For Bitcoin to become global payment infrastructure, it needs to scale — without sacrificing decentralization or security.
How Lightning Works
- Two parties open a payment channel by locking Bitcoin in a multisig address on-chain
- They exchange signed payment updates off-chain — instantly, for free
- Either party can close the channel at any time, settling on-chain
- Payments route through a network of channels — no direct connection required
Alice ←→ Bob ←→ Carol ←→ Dave
Lightning Network Path
Lightning Properties
- Instant: Millisecond settlement
- Cheap: Fractions of a satoshi in fees
- Private: Payments not published on-chain
- Programmable: Supports streaming payments, BOLT12
Real Use Cases
Lightning enables microtransactions previously impossible with Bitcoin: tipping content creators, pay-per-article, streaming money per second, gaming, machine-to-machine payments.
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