The basics
The Lightning Network is a second-layer protocol built on top of Bitcoin. It enables fast and cheap transactions by creating payment channels between users, avoiding the need to record every transaction on the main blockchain.
How it works
Two users open a payment channel by creating a Bitcoin transaction on the main chain. They can then send unlimited transactions between each other off-chain. When they’re done, the final balance is written to the blockchain.
Benefits of Lightning
Lightning transactions are nearly instant and cost just a fraction of a cent. The system reduces congestion on the Bitcoin network and makes microtransactions possible — something not feasible on-chain due to fees and speed limits.
Is Lightning secure?
Yes. Lightning relies on smart contracts and cryptographic rules that are enforced by the Bitcoin blockchain. It’s ideal for day-to-day payments, while still backed by Bitcoin’s strong security model.
