Lightning Network 101
Introduction to the Lightning Network: Bitcoin's Layer 2 payment protocol for instant, low-cost transactions.
What is Lightning Network?
The Lightning Network is a Layer 2 protocol built on top of Bitcoin that enables instant, low-cost payments. By creating payment channels between users, Lightning allows transactions to occur off-chain while maintaining Bitcoin's security guarantees.
How Lightning Works
Lightning uses payment channels - two parties lock bitcoin in a multisig address and can transact unlimited times off-chain. Only the opening and closing transactions are recorded on the Bitcoin blockchain. Channels can be connected to route payments across the network.
Key Benefits
Instant Payments: Transactions settle in milliseconds, not minutes.
Low Fees: Routing fees are typically fractions of a cent.
Scalability: Millions of transactions per second possible.
Privacy: Payments don't broadcast to entire network.
Micropayments: Enable sub-satoshi payments for streaming and metered services.
Use Cases
Lightning enables new Bitcoin applications: streaming money, instant merchant payments, peer-to-peer transfers, gaming economies, and internet-native payment streaming. It's the foundation for Bitcoin's everyday payment layer.
Getting Started
Try Lightning yourself with mobile wallets like Phoenix, Breez, or Zeus. Join our workshops to learn about running nodes, channel management, and building Lightning applications.