The Lightning Network is a “Layer 2” payment protocol that operates on top of a blockchain-based cryptocurrency (like Bitcoin). It enables fast transactions between participating nodes and has been touted as a solution to the Bitcoin scalability problem.
Lightning is a decentralized network using smart contract functionality in the blockchain to enable instant payments across a network of participants. The Lightning Network is dependent upon the underlying technology of the blockchain. By using real Bitcoin/blockchain transactions and using its native smart-contract scripting language, it is possible to create a secure network of participants which are able to transact at high volume and high speed. It promises to power transactions of the future – instant payments, scalability, low costs and cross blockchain compatible.
This SlideShare explores the concept of Lightning Network in brief.