Lightning Network

Lightning Network is a decentralized layer two scaling solution built on top of the Bitcoin blockchain. It enables near-instant and low-cost Bitcoin transactions by creating payment channels between participants. Transactions occur off-chain within these channels, reducing the load on the main blockchain and improving scalability. Lightning Network facilitates micropayments, allowing transfers as small as one satoshi (0.00000001 BTC) with negligible fees.

Key features of Lightning Network include:

Scalability: Lightning Network can process millions of transactions per second across the network, significantly increasing Bitcoin's throughput.

Speed: Transactions on Lightning Network are nearly instantaneous, measured in milliseconds to seconds, without waiting for blockchain confirmations.

Low Cost: By transacting off-chain, Lightning Network allows for exceptionally low transaction fees, making it ideal for micropayments.

Cross-Chain Compatibility: Lightning Network supports cross-chain atomic swaps, enabling transactions across different blockchain protocols.

Lightning Network operates through a network of nodes that create payment channels for exchanging funds. Participants lock Bitcoin into a multi-signature address, enabling numerous off-chain transactions within the channel's capacity. Only the opening and closing transactions are recorded on the Bitcoin blockchain, reducing congestion and fees.

Key customers and partnerships

Travala, an online travel booking platform, integrates Lightning Network for faster and cheaper Bitcoin payments.

Strike, a remittance app, employs Lightning Network for efficient cross-border money transfers.

THNDR Games leverages Lightning Network for in-game item purchases and micropayments.

OpenNode, a Bitcoin payment processor, offers Lightning Network integration for merchants to accept instant and low-fee payments.

El Salvador has adopted Lightning Network for facilitating remittances and day-to-day transactions after recognizing Bitcoin as legal tender.