Lightning Network is a Layer 2 payment protocol that operates over Bitcoin’s Blockchain. It enables fast transactions between participating nodes and has been touted as a solution to the Bitcoin scalability problem. It offers a peer-to-peer system for micropayments of cryptocurrency via a network of two-way payment channels without delegation of custody funds, which makes it useful for daily payments, but also allows more advanced applications. Lightning can serve as a basis for decentralized exchanges in which digital products can be swapped instantly without counterparty risk. In addition, the simple Dapps currently built on Ethereum can be built on Lightning, but much cheaper, faster and scalable. The normal use of the Lightning network is to open a payment channel by registering a financing transaction with the corresponding base blockchain (Layer 1) and then performing any number of Lightning transactions that update the interim allocation of funds. This will in-turn be followed by the closure of the payment channel by broadcasting the final version of the transaction to distribute the funds of the channel. Payment channels allow participants to transfer money without having to make all their transactions public on the blockchain. This is done by penalizing non-cooperating participants. When opening a channel, participants must commit an amount in a financing transaction, which is on the base blockchain. Time-based scripting, such as CheckSequenceVerifyand CheckLockTimeVerify, make the penalties possible. Lightning Network has been live for about a year and a half today and still is growing exponentially. The wallets are still primitive and the network is not yet 100% reliable but it is heading there. It will probably take some time before the adoption really takes off, but when that happens, it could be a cause for the price to skyrocket because Lightning is effectively turning the Bitcoin monetary system into a payment system from the Internet! What we really expect, when Lighting succeeds, the market will understand that we only need Bitcoin. A single blockchain is much more efficient, a much higher level of security can be achieved with less energy. Lightning Network is a second-tier solution that will likely take market share on all fast and cheap cryptocurrencies that functions as a medium of exchange. In addition, Lightning will take over the market share of the smart contract platforms and the third, fourth and fifth layers of Bitcoin will eventually replace the Blockchains with more specialized functions. Bitcoin may very well be the TCP/IP of money.