Lightning Network

Category: infrastructure

A Layer-2 routing protocol built on top of Bitcoin that enables instant, low-cost micropayments via off-chain payment channels.

The Lightning Network solves Bitcoin’s base-layer scalability limitations. By opening bidirectional payment channels funded by a base-layer transaction, users can send funds back and forth instantly without waiting for 10-minute block confirmations. The base blockchain is only touched to open or close the channel, acting as the ultimate settlement judge.

Common Examples

  • We integrated a Lightning Network gateway into our data marketplace to process sub-cent payments for API calls in real-time.
  • A Lightning Network routing node earns small fees by forwarding transactional liquidity across its established payment channels.

AvoCoLab – Community, News & Market Intelligence