What is the Bitcoin’s Lightning Network in simple terms?

Lightning Network is based on the idea that not all transactions need to be recorded on the blockchain. Imagine that you and I have spent many times between us. In such a case, we can ignore the recording of transactions on the blockchain and transfer them out of the chain. In simple terms, we will open a payment channel between us and record its opening on the Blockchain. Now, you and I can trade at any time via this payment channel and it can stay open for hours, days, weeks or decades. The only time we would like to reach the Blockchain is when we close the channel. Then we will write the final status of the transactions that occurred via the Lightning channel. Using this payment channel idea, we can create a network of payment channels so that it is rarely necessary to make transactions on the Blockchain. It’s like a safe where two people deposit equal sums and lock them. The idea behind locking money in such a safe is that no one can spend money in the safe without the other. The money in this safe is then used to make settlement transactions between them at closure of the channel.

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