Back to Glossary
General TradingL

Lightning Network

A decentralized layer 2 payment protocol layered on top of the Bitcoin network that makes bitcoin (BTC) better by transacting off-chain, or outside of the Bitcoin network. It can handle billions of transactions per second across its network. It can handle billions of transactions per second across its network, providing near-instant financial transactions between platforms and wallets using it together. The Lightning Network can also offer cross-chain atomic swaps, happening off-chain instantly

Example

Using the Lightning Network, a user in El Salvador paid for a cup of coffee with Bitcoin in under two seconds and with fees less than one cent.