Historical retrospective · Layer 2
The Lightning paper framed payment channels as a Bitcoin scaling path
The Lightning Network’s foundational paper described routed payment channels that can settle balances on Bitcoin without recording every transfer on-chain.
Channel networks aim to reduce base-layer transaction demand while preserving the option to settle disputes using Bitcoin’s consensus rules.
The proposal helped establish a layered scaling narrative that continues to shape Bitcoin development.
Off-chain payments trade block-space use for channel liquidity, online availability and routing constraints.
Primary source
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