Lightning Network on Bitcoin?

Is this generally accurate?

Background: Bitcoin transactions are verified pretty fast, typically around 10 minutes, but at worst take a few hours. The Lightning Network speeds up Bitcoin transactions.

On-chain vs Off-chain, what’s the difference?

On-chain: Transactions that happen on the original Bitcoin Blockchain. Slower, more expensive, more secure, and has transparency.

Off-chain: Transactions that happen on the side of the blockchain. Typically faster, cheaper, not as secure, and has less transparency.

*Off-chain transactions typically use technologies called L2’s or layer 2’s. This just means you have your original Network, like the Bitcoin blockchain that nearly everyone uses. This is a Laye 1 or L1. Then these technologies are built on top of these L1 networks and work with the original blockchain but do most of their transactions on the side on this L2.

The “lightning network” is a technology built on top of Bitcoin. Some smart group created this “thing” or software that basically was built on top of how Bitcoin works. Instead of taking 10 minutes and costing a couple of dollars, it sends in seconds and costs pennies.

How? In short, instead of using the Bitcoin Network for every transaction, you’re kinda transacting on the side, or “off-chain” then eventually going back to the original Bitcoin network.

Now, what’s the catch? It’s technically not as secure as the original Bitcoin network, and it could be difficult to set up.

So, The Lightning Network is software built on Bitcoin that is faster and cheaper but less secure, that eventually goes back to the original Bitcoin network.