Lightning Network

In plain words

Lightning is a payment network built on top of Bitcoin. Two people lock some bitcoin into a shared "channel" with one on-chain transaction. Then they can pay each other instantly, thousands of times, for almost nothing — only the final balance ever touches the blockchain. Channels link into a network, so you can pay strangers through other people's channels, and the math makes sure nobody in the middle can steal.

Why it matters

• Solves the speed problem without touching Bitcoin's base rules.
• Fees are usually well under a cent — tiny payments become possible.
• Payments settle in about a second — no ten-minute wait.

Not to be confused with

• An altcoin — Lightning moves real bitcoin; there is no separate token.

Go deeper

• Payment channels
• Lightning invoices
• Lightning vs on-chain