Lightning Network
A payment layer on top of Bitcoin that settles small transfers in seconds for a tiny fee.
Lightning is a second-layer network built on Bitcoin. Users fund payment channels with on-chain BTC and route payments across a mesh of those channels. The main chain is touched only when a channel is opened or closed.
What it changes at the cashier
A regular on-chain Bitcoin deposit can take anywhere from 10 minutes to an hour, and fees climb when the network is congested. Over Lightning, a payment usually lands within seconds for a negligible fee. More and more crypto casinos take Lightning deposits, and a few also pay withdrawals that way.
Key differences from on-chain
- Instead of an address, you pay an invoice. Invoices typically begin with "lnbc" and have an expiry.
- Your wallet must support Lightning.
- A large payment may fail if no route has enough capacity, which is why casinos often cap Lightning withdrawals.
Mixing up the two
Never send on-chain BTC to a Lightning invoice, and never try to settle a Lightning invoice from a wallet that only does on-chain. Pick the cashier option that matches your wallet.