# Lightning Network

> A layer 2 for Bitcoin that lets users send fast, cheap payments through a network of payment channels.

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Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

The Lightning Network is a layer 2 built on top of Bitcoin. It uses payment channels to let users send tiny payments instantly, without each one being recorded on the main chain. Funds are moved across a network of channels, with each hop taking a small fee.

Lightning makes Bitcoin practical for everyday payments and remittances, with the trade-off that the user experience is more complex than a simple on-chain send.

## Related terms

- [Bitcoin](https://business.fudfomo.co/glossary/bitcoin): The first cryptocurrency. A digital money you can send anywhere in the world without a bank, secured by a network of computers.
- [Layer 2](https://business.fudfomo.co/glossary/layer-2): A faster, cheaper network built on top of a layer 1 like Ethereum. Borrows the main chain's security.
- [State Channel](https://business.fudfomo.co/glossary/state-channel): A way for two or more users to transact off-chain and only settle the final balance on the main chain.

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