Lightning Network

The Lightning Network is a second-layer solution for blockchain networks, designed to enhance the scalability and speed of transactions, particularly for cryptocurrencies like Bitcoin.

History

Introduced as a concept in 2015 by Joseph Poon and Thaddeus Dryja and deployed on Bitcoin's mainnet in 2018, the Lightning Network aims to address the limitations of the base blockchain by enabling off-chain transactions. It operates as a network of payment channels, allowing participants to conduct near-instant and low-cost transactions without the need for each transaction to be recorded on the main blockchain. This approach alleviates congestion on the main blockchain and reduces transaction fees. The Lightning Network has garnered attention as a potential solution to the scalability challenges faced by many blockchain systems, offering a way to process microtransactions and enhance the overall efficiency of cryptocurrency transactions.