What Is the Lightning Network?

The Lightning Network is a layer-2 payment system built on top of Bitcoin that enables fast, low-cost transactions. Instead of sending every payment directly to the Bitcoin blockchain, Lightning allows users to transact through payment channels—special connections between wallets that can send value instantly. These transactions are settled off-chain first and only touch the blockchain when channels are opened or closed.

Lightning was created to solve Bitcoin’s scaling challenge. The Bitcoin blockchain is intentionally limited in capacity so it remains secure and decentralized. But that means it can't handle millions of small payments per second on its own. Lightning adds an extra layer built specifically for speed and efficiency, while still relying on Bitcoin’s strong security underneath.

For everyday use—tipping online, buying coffee, or making small recurring payments—Lightning feels like a typical mobile payment app, but without banks or intermediaries. It enables Bitcoin to function not only as digital gold, but also as digital cash.