GLOSSARY/LIGHTNING NETWORK

Lightning Network

PROTOCOL
DEFINITION
Bitcoin’s payments layer: a network of payment channels on top of the blockchain enabling instant, near-free transactions — the difference between settling and spending.
The base chain is a settlement system: global, final, ~10-minute confirmations, fees that rise with demand. Lightning locks bitcoin into two-party channels and routes payments across them, settling to the chain only when channels open or close. Result: payments in milliseconds for fractions of a cent.
In practice you meet Lightning through wallets like Phoenix (self-custodial, automated) or exchange withdrawals (River and Cash App support it natively). It is how bitcoin functions as daily money rather than only savings.
IN A SENTENCE
“The coffee cost 4,100 sats over Lightning — settled before the receipt printed.”

Key facts

Payment speedMilliseconds
Typical fee< 1 cent
Best wallet (our pick)Phoenix
Exchanges with LNRiver · Cash App · Kraken

Common questions

Is Lightning bitcoin?

Yes — real bitcoin in real channels, redeemable on-chain at any time. It is a way of moving bitcoin, not a separate token.

Why did I pay a fee to receive?

Inbound channel capacity has a cost; self-custodial wallets like Phoenix charge it transparently when new capacity is needed.

Learn it properly

Our 10-lesson path takes you from “what is bitcoin” to running your own node.
Start Lesson 1 →