What is the Lightning Network?
Lightning Network (LN) is a network of payment channels in the form of an add-on above the block. The principle of LN operation is to create two-way confidential payment channels between users, united in one common network.
Within the payment channel, the main (opening and closing) and secondary (all other) transactions are conducted. Basic transactions are recorded in the blockroom. Secondary ones are carried out only in the LN network.
Advantages of LN: instant payments, scalability, low cost.
Lightning Network developed by Joseph Poong and Taj Driya in 2016, but the active phase of testing and launch began only in late 2017.
To date, in addition to Bitcoin, Litecoin, Zcash, Ethereum and Ripple are working on the practical implementation of LN or similar superstructure of the block. Also in late January, it became known about the plans of Stellar developers to add Lightning Network to increase network security and increase its bandwidth.