Lightning Network

The Lightning Network is a secondary layer built on the Bitcoin blockchain that enables fast, low-cost transactions. Instead of recording every transaction on the main blockchain, users open private payment channels between each other. These channels allow for numerous transactions to be exchanged instantly and securely off-chain. Only the opening and closing transactions are recorded on the main blockchain, reducing congestion and fees. When users are done transacting, the final balances are settled on-chain. This setup facilitates quick, inexpensive micropayments and enhances Bitcoin's scalability while maintaining security.