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  3. /Lightning Network
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blockchain

Lightning Network

A Layer 2 payment network built on Bitcoin that enables near-instant, low-cost transactions through payment channels.

Definition

A Layer 2 payment network built on Bitcoin that enables near-instant, low-cost transactions through payment channels. Users open channels, transact off-chain, and settle on Bitcoin when they're done. It's the most widely adopted Bitcoin scaling solution and is used for everyday payments in countries like El Salvador.

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Learn More About Lightning Network

GuideWhat is Bitcoin? Complete GuideGuideLayer 2 Solutions Guide

Related Terms

State Channel

A Layer 2 scaling technique where two parties open a channel, transact off-chain as many times as they want, and only settle the final result on-chain.

Bitcoin

The first cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto.

Layer 2

A secondary network built on top of a Layer 1 to improve scalability.

ABI

Application Binary Interface.

Account Abstraction

A way to make crypto wallets behave more like normal apps by turning every account into a smart contract.

ERC-4337

The Ethereum standard for account abstraction without changing the core protocol.

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Bitcoin Guide/learn/bitcoinMining Guide/learn/miningLayer 2 Guide/learn/layer-2

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