What is Lightning Network?
The Lightning Network is a Layer 2 for Bitcoin built from bidirectional payment channels. Two parties open a channel with an on-chain transaction, exchange thousands of off-chain payments instantly and cheaply, then settle the final balance back on-chain.
Why Lightning Network matters
Understanding Lightning Network is part of building a solid mental model of how Bitcoin, blockchain and Web3 systems actually work. Concepts in the Bitcoin category sit at the foundation of the broader stack — get them right and the rest is far easier.
Learn this interactively
Reading the definition is a start. ZeroToBlock teaches concepts like Lightning Network through hands-on, browser-based simulations. Build the mental model by actually using it:
- Bitcoin 101 — interactive fundamentals course
- Bitcoin Proof of Work — mining, hashing and consensus
- Browse all interactive blockchain courses
Related terms
- Bitcoin — The first decentralised digital currency, launched in 2009.
- Layer 2 (L2) — A scaling network that settles to a Layer 1.
- Payment Channel — An off-chain ledger between two parties.
More bitcoin terms
- Address (Bitcoin / Crypto Address) — A public destination for receiving cryptocurrency.
- Block Header — The metadata at the top of each block.
- Block Reward — New coins paid to the miner of a block.
- Difficulty — A parameter that controls how hard it is to mine a block.
- Double Spend — Attempting to spend the same coin twice.
- Halving — The scheduled 50% cut in Bitcoin's block subsidy.
- Hash Rate — The total computational power securing the network.
- Mining — Producing new blocks by performing Proof of Work.
Keep exploring
Continue with the full blockchain glossary — 136 terms in total — or read the developer blog and FAQ for deeper context.