What is the Lightning Network?. The Lightning Network is a payment layer for Bitcoin that enables instant, low‑fee transfers by settling many transactions off‑chain and netting the result on‑chain.
How it works
Users open payment channels on Bitcoin, route payments through connected nodes, then close channels to settle the final balances.
Why it matters
Lightning improves usability for small, frequent payments without changing Bitcoin’s base layer.
Common pitfalls
- Forgetting inbound liquidity requirements
- Running nodes without backups of channel states
- Using unreliable routing nodes for large payments
Quick example
A café accepts Lightning payments that confirm in seconds, not minutes, while still ultimately settling on Bitcoin.
See also
- Bitcoin
- Layer 2
- Channel State
TL;DR: What is the Lightning Network? defined in plain English with practical next steps.
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