The Lightning Network
- A scaling solution for Bitcoin
- Built on top of layer 1
- The money being sent is also BTC
LN characteristics
- Synchronous payments
- Fees based on payment amount rather than transaction size in bytes
- As with Layer 1, transactions are fully settled
Technical perspective
- Separate network alongside Layer 1 network
- Lightning anchors into Layer 1
- Payment synchronicity requires availability of payment receiver
- Interoperability between Layer 1 and 2 is challenging (UX)