Payment · Lexicon

Lightning Network, explained

Lightning is a Bitcoin payment-channel network supporting payments without recording each transfer as a separate base-chain transaction.

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Payment
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In this entry
Meaning · relevance · limits
01

The meaning

Lightning is a Bitcoin payment-channel network supporting payments without recording each transfer as a separate base-chain transaction.

02

Why it matters

It uses its own invoices and routing. A merchant must explicitly integrate the method before a Lightning payment can settle an order.

03

The boundary

Ordinary Bitcoin on-chain support does not establish Lightning compatibility.

04

Payment channels have operational requirements

A merchant may explore Lightning for small invoices, then assess channel liquidity, node availability, backups and payment reconciliation. Those requirements belong to a separate deployment from an on-chain Bitcoin receiving address. OmbraHost offers on-chain BTC among its eight asset/network routes; Lightning is not offered.

  • Separate an on-chain BTC invoice from a Lightning invoice and verify wallet compatibility.
  • Node availability and routing liquidity can affect payment success.
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