Lightning Network

The Lightning Network is Bitcoin's state-channel network for instant, near-free payments: open a channel once on-chain, then send unlimited sats off-chain,

The Lightning Network is Bitcoin’s state-channel network for instant, near-free payments: open a channel once on-chain, then send unlimited sats off-chain, settling only when you close. Payments route across the network like packets.

Why it matters

Lightning is how Bitcoin scales to coffee money without touching base-layer throughput — millions of instant payments, fees of a fraction of a cent. The honest caveats: channel liquidity management, needing to be online (or use watchtowers), and routing failures on large amounts. It’s improving fast and already settles real volume.

Related terms

bitcoin · state channel ·
satoshi

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