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Lightning Network
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What does Lightning Network mean in crypto terms?
The Lightning Network is a second-layer scaling solution designed to enable fast, low-cost transactions on blockchain networks like Bitcoin. It operates by creating off-chain micropayment channels between two parties, allowing them to transact multiple times without needing to record each transaction on the blockchain. Only the final balance is recorded on-chain when the channel is closed. This approach significantly reduces transaction times and fees, making micropayments and frequent transactions more feasible on the network.
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