ScalingIntermediate

Lightning Network

A Bitcoin payment network that uses channels so every payment does not need its own onchain record.

PLAIN-ENGLISH DEFINITION

In more detail

Lightning payments move through channels backed by enforceable Bitcoin transactions. That can make small payments practical, but the route needs enough available liquidity in the right direction. Channel setup and settlement still involve the blockchain. A Lightning payment failing doesn't necessarily mean Bitcoin itself is down; the route may be the problem.

IN THE WILD

How you might use it

'The Lightning payment didn't go through.' The wallet tries another route because the first one lacks enough channel liquidity.

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By Crypto Dictionary · Published · Updated

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