The Lightning Network enables fast and cheap transactions on top of the Bitcoin blockchain from "summary" of The Bitcoin Standard by Saifedean Ammous
The Lightning Network is a second-layer protocol that operates on top of the Bitcoin blockchain. It aims to address the issue of slow transaction speeds and high fees associated with on-chain Bitcoin transactions. By allowing users to create payment channels between each other off-chain, the Lightning Network enables fast and cheap transactions that are settled on the Bitcoin blockchain only when necessary. To use the Lightning Network, users need to fund a payment channel by locking some Bitcoin in a multi-signature address shared between the two parties. This amount represents the maximum that can be transacted between them. Once the channel is open, the two parties can transact as many times as they want, with the final balances settled ...
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