What is Lightning network

Lightening network is a layer 2 solution to address the scalability issue Bitcoin suffers from. Compared to traditional platforms, Bitcoin can process a much lower number of transactions per second. To put things into perspective, Bitcoin can only process around seven transactions per second, whereas Visa can process thousands of transactions per second. This causes Bitcoin transaction fees to skyrocket.

As Bitcoin’s popularity grows and to foster wide scale adoption, the transaction throughput needs to be increased. As a result, several technological solutions were developed to address the scaling problem. The lightening network represents one of those solutions, enabling transactions to be processed at a higher rate.