Algorithm

Cryptos:

2,117

Exchanges:

10

Marketcap:

$2,120,311,295,469

Volume 24h:

$50,109,644,881

Lightning Network

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.

Did you find this term clearly defined?

Yes

No

Explore Other Crypto Terms

Hash Rate

Hash Rate is a critical parameter in the world of cryptocurrencies, representing the number of hash operations a miner or the entire network can perform per second.

Read More

51% Attack

A 51% Attack refers to a security risk in a decentralized blockchain network, where an individual miner or mining pool gains control of more than 50% of the network's hash rate, allowing them to unilaterally manipulate the blockchain.

Read More

2FA (Two-Factor Authentication)

Two-Factor Authentication (2FA) is a security mechanism that requires a user to provide two types of identification to access an online account or service.

Read More

Wrapped Tokens

Wrapped Tokens are a type of cryptocurrency token that are issued on a blockchain different from the native blockchain of the asset it represents, and are pegged to the value of that asset.

Read More

Multisignature Wallet

A Multisignature Wallet, or multisig wallet for short, is a digital wallet designed to enhance security through the requirement of multiple signatures to authorize a transaction.

Read More

Peer-to-Peer

Peer-to-Peer (P2P) refers to a decentralized form of interaction that occurs directly between parties without the need for an intermediary or central authority.

Read More

Replay Attack

A Replay Attack is a malicious network attack where a valid data transmission is fraudulently repeated or delayed.

Read More

Side Chain

A Side Chain is a separate blockchain that operates alongside a parent blockchain, enabling enhanced functionality or value.

Read More