Lightning Network

The Lightning Network is a “layer 2” payment protocol designed to be layered on top of a blockchain-based cryptocurrency such as BitcoinBitcoin (BTC)1$ 77,295.840.18%1h-6.01%24h-15.89%7ddetails or LitecoinLitecoin (LTC)13$ 71.000.13%1h0.39%24h1.59%7ddetails.

It is intended to enable fast transactions among participating nodes and has been proposed as a solution to the bitcoin scalability problem no blockchain has been able to optimise three qualities simultaneously, decentralisation, security, and scalabilityLearn more.

It features a peer-to-peer system for making micropayments of cryptocurrency through a network of bidirectional payment channels without delegating custody of funds.

Normal use of the Lightning Network consists of opening a payment channel by committing a funding transaction to the relevant base blockchain (layer 1), followed by making any number of Lightning Network transactions that update the tentative distribution of the channel’s funds without broadcasting those to the blockchain A blockchain is a digital ledger of transactions that works from a decentralized network.Learn more, optionally followed by closing the payment channel by broadcasting the final version of the settlement transaction to distribute the channel’s funds.