Bitcoin Lightning: why a second payment layer exists

The Lightning Network is a payment network built on top of Bitcoin. Participants conduct many operations away from the base chain, while final states are anchored by Bitcoin transactions.

This enables fast smaller payments and reduces demand on the base blockchain. Both parties need compatible Lightning wallets, and the payment route needs sufficient liquidity.

A Lightning invoice and a regular Bitcoin address are different payment methods. Before sending, verify the format expected by the service, the invoice expiry and the amount.

For large balances, Lightning does not replace a considered security model. Its primary value is fast payments rather than a universal replacement for Bitcoin settlement.