What Is The Lightning Network?

The Lightning Network is a Layer 2 solution for Bitcoin, enabling quick, low-cost transactions by operating off the main Bitcoin blockchain. By creating payment channels between two parties, transactions are settled instantly and privately, with only the opening and closing of channels being recorded on the Bitcoin blockchain. By consolidating numerous small transactions off-chain and then broadcasting them as a single transaction to the main blockchain, the Lightning Network alleviates congestion, ensuring more efficient and cost-effective Bitcoin transactions.