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What is the Lightning Network? (Explained Simply)The Lightning Network is a second layer added to Bitcoin's (BTC) blockchain that allows off-chain transactions, i.e. transactions between parties not on the. The Lightning Network is a Layer 2 communication and payment protocol built on Bitcoin blockchain. In other words, the Lightning Network is a. Lightning is a decentralized network using smart contract functionality in the blockchain to enable instant payments across a network of participants. How it.