The Lightning Network

Bitcoin's base layer is optimized for secure settlement, not for tiny payments every few seconds. Lightning is the scaling path that moves frequent payments off-chain while still anchoring the relationship back to Bitcoin.

Instead of writing every coffee purchase to Layer 1, Lightning lets participants update balances privately and cheaply until they are ready to settle.

The tradeoff is that Lightning adds operational complexity. Liquidity must be placed in channels, routing can fail, and users rely on software that is more dynamic than a simple on-chain wallet.

Even with those tradeoffs, Lightning explains how Bitcoin can aim for both a conservative base layer and a more practical payments experience on top of it.