Electric Network as a solution for Bitcoin transaction speed

When it comes to Bitcoin, one of the main issues is the slow and costly transfers. This is where the Bitcoin Lightning Network comes into play — a second-layer technology that radically changes the approach to payments in the BTC network. Let’s understand why this protocol is considered revolutionary and how it works in practice.

How it works: payment channels instead of the blockchain

Unlike traditional Bitcoin transactions, which are recorded on the blockchain, the Lightning Network operates through a system of payment channels between participants. These channels allow for numerous transactions to be conducted off the main chain, recording only the opening and closing of the channel on the blockchain.

Thanks to this approach:

• Transactions are almost instant
• Fees are minimized
• Payment privacy is enhanced

Lightning Network nodes (nodes) form a routed network through which payments can be transmitted between participants, even if they do not have a direct channel. This multi-node connectivity creates a seamless microtransaction ecosystem.

From idea to reality: the history of the Lightning Network

The concept was first described in a whitepaper published by Joseph Poon and Thaddeus Dryja in 2015. However, it took another three years before the first working version appeared on the Bitcoin mainnet in 2018. This event ushered in a new era for cryptocurrency payments.

Performance: numbers are impressive

This is one of the main advantages. While the main Bitcoin network processes about 7-10 transactions per second, the Layer-2 solution Lightning Network can handle a million TPS. This colossal difference makes Bitcoin truly applicable for everyday transactions.

Comparison with the main Bitcoin network

The Lightning Network is more versatile — it supports not only Bitcoin but also other crypto assets: Litecoin, Stellar, XRP, Ethereum, Zcash. This makes it a platform for cross-asset payments.

Why is this critically important for Bitcoin

Scalability — Bitcoin’s main headache. During peak activity, the network gets congested, speeds drop, and fees soar. The Lightning Network solves this problem by enabling millions of transactions to bypass the main blockchain.

Practicality — today, Bitcoin is positioned not only as digital gold but also as a payment system. Speed and low cost are essential for this. The Lightning Network provides exactly that, paving the way for widespread adoption of BTC for microtransactions and everyday payments.

Compatibility — This network addresses fragmentation issues. Users can interact through various Lightning Network nodes, creating a cohesive payment ecosystem.

Modern trends — developments like Bitcoin ordinals and BRC-20 token standards require efficient second-layer infrastructure for scaling. The Lightning Network is becoming a key component of this ecosystem.

Practical applications

The Lightning Network is already used for:

• Microtransactions in content (streaming, articles, posts)
• Instant transfers between crypto exchanges
• Fast P2P payments without intermediaries
• Integration into mobile applications

Choosing between the main network and the Lightning Network depends on your goals: large transfers with maximum security — Bitcoin mainnet; frequent small payments — Lightning Network. Together, they create a comprehensive payment system of the future.