Lightning Network

The lightning network refers to the second layer payment protocol that works on top of a blockchain network. A lightning network facilitates fast and scalable transactions across the various nodes. Initially, it was designed to cater to Bitcoin’s scalability issue.

Predominantly transactions occur on the blockchain while taking a significant hit on the transaction fees due to congestion. The lightning network involves facilitating those transactions off-chain.

Initially, the lightning network was developed to take off the strain on the Bitcoin network, while significantly lowering the transaction fees. The transactions are often faster since no approval by the nodes is required whatsoever.