What is the Lightning Network?

The Lightning Network is a second-layer solution built on top of blockchain networks like Bitcoin and Litecoin to enable faster and cheaper transactions. It works by creating off-chain payment channels between users, allowing for multiple transactions to occur without being recorded on the main blockchain. Once the transactions are completed, the final result is recorded on the blockchain. This method significantly reduces transaction fees and processing times compared to on-chain transactions. The Lightning Network aims to improve scalability by enabling micro-transactions and facilitating instant payments, which is crucial for the adoption of cryptocurrencies in everyday transactions.