Payment channel
A channel that updates payment balances without requiring an onchain transaction for every payment.
In more detail
Participants commit funds and exchange enforceable updates about who can claim which amounts. Opening and closing still involve the blockchain. A funded channel also has directional liquidity: money available on one side does not automatically make an equally large payment possible in the opposite direction.
How you might use it
You make several Lightning payments by updating channel balances, without publishing a separate onchain transaction for each one.
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