Solutions
Introduction to the
Lightning Network
Anchored in the trust of the Bitcoin network, the Lightning Network enables the instant exchange of value at the speed of light. It is the equivalent of the email protocol applied to payments.
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Discover the opportunities of using instant and atomic payments
Lightning : a "Layer2" protocol
The overall efficiency of the internet relies on its multi-layer architecture: each protocol layer ("layer") is specialized, simple, agnostic, and independent of the others, offering immense flexibility. This structure enables the development of a wide range of diversified applications across different levels.
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The Lightning Network is a protocol layer (layer2) designed to solve the scalability issue of the main Bitcoin network, allowing for:
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An increased number of possible transactions per second
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Nearly instant payments, potentially of very low amounts, and at an extremely reduced cost
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Without compromising security
The Lightning Network enables Bitcoin transactions while minimally interacting with the main Bitcoin blockchain:
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Funds are initially locked (escrowed) on the main chain to establish a payment channel between two parties.
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A network of payment channels between multiple parties creates a payment network (routing and meshing).
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Transactions occur between parties but are not yet published on the main Bitcoin blockchain ("off-chain").
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When they are published on the main Bitcoin blockchain ("on-chain"), it's only the final balance of all the transactions in a channel, allowing for numerous transactions to have occurred in the meantime.
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A user can close their channel at any time and recover their Bitcoins by publishing the latest state of their transactions. This is the principle of transactions that are "publishable" at any moment but "unpublished."
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This approach avoids the slowness and complexity of performing all transactions on the main Bitcoin blockchain by only recording the final balances, thus benefiting from its security. The Lightning Network is a network "on top" of Bitcoin but is anchored to it.
Lightning Network enables Bitcoin to scale as a payment network
An ultra fast payment rail
The Lightning Network radically transforms the way "money" circulates, making it as free and fast as data transmission on the Internet.
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Here are its main features:
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Peer-to-Peer and Universal: It requires no intermediaries or permissions to conduct transactions.
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'Atomic' Payment Rail: It can handle transaction volumes a thousand times greater and at a speed a thousand times faster than the traditional banking system, for amounts of all sizes (for example, 0.004 cents). It also has an energy consumption a thousand times lower.
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Proven Security: It benefits from the robust security of the Bitcoin protocol layer, which has never been compromised and has been operational for 15 years.
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Nearly Instant Payment Finality: Transactions are finalized in about 500 milliseconds, thus eliminating traditional payment delays such as the "30-day payment."
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High Availability (high uptime).
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Controllable
Ultra-fast and universal, the Lightning Network is an "atomic" payment network.
Lightning use cases
The primary use case of the Lightning Network is for everyday payments.
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If Bitcoin is the user's inviolable safe, then the Lightning Network is the current account that is periodically replenished and used for daily transactions. Its speed and ability to handle very small payments at a lower cost than the traditional banking network are major advantages.
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For a business, it is easy to set up to accept these types of payments. It only takes a few minutes using a smartphone app.
The applications of the Lightning Network are virtually limitless, as offering a completely free and instant payment rail opens up entire sectors of the economy to benefit from its use.
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With instant and atomic payments, businesses can, for example:
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Breathe new life into sales.
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Explore new economic models.
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Develop next-generation marketing actions by reaching users directly in their wallets (advertising, gift cards, loyalty programs, etc.).
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Reduce their costs and fees.
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Reach a new class of users.
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Enter the "atomic" economy, especially in the realm of machines (IoT, AI, APIs, etc.).
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Examples to explore:
