Glossary - ChicksX

Lightning Network is a second-layer solution for Bitcoin, enabling faster transactions and lower fees by processing off-chain payments.

Lightning Network is a second-layer protocol built on Bitcoin's blockchain to facilitate faster and cheaper transactions. It operates by creating off-chain payment channels between users, allowing them to conduct multiple transactions without needing to record each one on the blockchain. Only the opening and closing of these channels are recorded on-chain, dramatically increasing transaction speed and reducing costs. This scalability solution enhances Bitcoin's capacity to handle a higher volume of transactions, making micropayments feasible. By routing transactions through interconnected channels, the Lightning Network aims to improve Bitcoin's utility for everyday use and broader adoption.