Definition
The Lightning Network is a second-layer protocol that enables near-instant Bitcoin payments at very low cost. It works by opening payment channels between participants, where multiple transactions can occur off-chain. Only the opening and closing transactions are recorded on the Bitcoin blockchain.
Lightning is particularly relevant for miners because it enables instant micropayments for pool rewards and can be used for small mining-related purchases. It demonstrates Bitcoin’s layered scaling approach: base layer for security and settlement, Lightning for speed and volume.
In Simple Terms
A Layer 2 protocol enabling fast, cheap Bitcoin payments through off-chain payment channels.
A Layer 2 payment protocol built on top of Bitcoin that enables fast, cheap, and scalable transactions through payment channels.