Bitcoin

Lightning Network

By Paul Brock·Updated on 22-04-2026
TL;DR

Lightning Network is a Layer-2 protocol atop Bitcoin enabling instant, near-free payments via a network of bidirectional payment channels.

Lightning moves transactions off-chain into private channels between users. Only channel opens and closes go on-chain. Inside channels, infinitely many transactions can happen, each sub-second, with fees of mere sats. Ideal for microtransactions and remittances; Bitcoin self-custody becomes realistic for daily payments. Popular wallets: Phoenix, Muun, Breez, Wallet of Satoshi (custodial).

Example

A content creator receives 50-sat tips from dozens of countries. On-chain: impossible (fees higher than tip). On Lightning: direct, free, no bank. Tens of euros per day without an on-chain tx.

Frequently asked questions

How do I start with Lightning?

Begin with Phoenix (non-custodial, smart channel-management) or Wallet of Satoshi (custodial, for microtransactions). Top up €5-20 to test.

Related terms

Payment channelSubmarine swapBitcoinProof of WorkSatoshi (unit)CoinJoinBlockHot walletSegWitBlock rewardHODL

Further reading

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