The Bitcoin Lightning Network is a second-layer solution designed to facilitate faster and cheaper transactions on the Bitcoin blockchain. It aims to address the scalability issues that arise when the network experiences high volumes of transactions.

Instead of processing every transaction on the main blockchain, users can open payment channels between each other. This allows them to conduct multiple transactions off-chain without needing to record each one on the Bitcoin blockchain. Once users finish their transactions, only the final balance is recorded on the main blockchain, significantly reducing fees and processing times.

The Lightning Network enhances payment flexibility, making microtransactions feasible. As a result, it can support various applications, including online tipping, small purchases, and other frequent transaction needs, encouraging broader Bitcoin adoption. Overall, the Lightning Network represents a critical innovation aimed at improving Bitcoin’s usability, helping it function more like cash for everyday transactions.