Lightning Network


1. definition

The Lightning Network (LN) is a second layer scaling product on the Bitcoin (BTC) network. The LN is a series of payment channels which enable low-fee micro-transactions with improved anonymity.

The main cost of using the LN is opening and closing payment channels, each action require an on-chain BTC transaction. The price of which depends on current congestion, but can range from ~$0.10 to $20, or even more. Once the payment channel is open, the payments within the LN can be fast and cheap.
It will be interesting to see if this gains adoption, or if the cash use case moves to other chains.

* All terms and definitions may update as the Cryptionary improves.

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