Lightning Network
Bitcoin's Layer 2 payment network using state channels for instant, near-free micropayments.
The Lightning Network is Bitcoin’s leading Layer 2, built on state channels to enable instant, extremely cheap Bitcoin payments. Users open channels, transact off-chain as many times as they like at near-zero cost, and settle the net result to the Bitcoin base chain — sidestepping Bitcoin’s ~10-minute blocks and on-chain fees.
It’s what makes Bitcoin viable for everyday small payments and micropayments, and it underpins Bitcoin adoption in some regions and applications. Trade-offs include the need to manage channel liquidity, keep funds in online channels, and route payments through the network — friction that has kept it more useful for specific payment use cases than as a universal solution. It’s Bitcoin’s primary answer to the scaling question.