Payment Channel
Layer 2● Common
A two-party arrangement enabling unlimited off-chain transactions by locking funds in a multisig output. Only the opening and closing transactions appear on-chain. Lightning Network is a network of interconnected payment channels enabling multi-hop payments.
Technical Notes
Funding tx: 2-of-2 multisig locks funds. Commitment txs: updated off-chain with each payment. Closing: cooperative (instant) or unilateral (timelock). Revocation keys punish cheating. Capacity limited by channel balance.
Metadata
Visibility: Public
Created:1/3/2026by System