What is the Lightning Network?
The Lightning Network is a "layer 2" built on top of Bitcoin. Instead of recording every payment on the Bitcoin blockchain (which takes 10–60 minutes and costs a few pounds in fees), Lightning participants open payment channels between each other and route payments peer-to-peer. The result: payments settle in under a second with fees measured in satoshis.
Why merchants accept Lightning
- Instant settlement — no chargeback risk for small amounts
- Near-zero fees — even for tiny purchases (1p, 5p)
- Better UX — no waiting 10 minutes for a coffee
- Global by default — same protocol worldwide
Picking a Lightning wallet
For beginners
- Wallet of Satoshi — custodial, easiest onboarding, works on iOS and Android. Trade-off: the operator holds your funds.
- Strike — available in the US and expanding. Excellent UX.
For privacy and self-custody
- Phoenix (ACINQ) — self-custodial, auto-manages channels. Best balance of UX and sovereignty.
- Breez — self-custodial, more features, POS mode.
- Zeus — for power users running their own Lightning node.
For advanced users
- Core Lightning (CLN) or Lightning Network Daemon (LND) — run your own node.
- Lightning Address (e.g. you@lnaddress.com) — like email, but for Bitcoin. Works across wallets and merchants.
How to pay a Lightning invoice (in 10 seconds)
- Open your Lightning wallet.
- Tap "Send" or the scan icon.
- Scan the merchant's QR code or paste their Lightning invoice (starts with
lnbc…). - Confirm. Done.
Lightning Address (LNURL)
A Lightning Address looks like an email (you@yourdomain.com) but receives Bitcoin. Anyone with a Lightning wallet can send to it. Many merchants and creators use Lightning Addresses instead of generating invoices. Pay them by typing the address into your wallet.
Limits and gotchas
- Channel size matters. You can only send the size of your outbound channel liquidity. Phoenix and Breez handle this automatically.
- Receiving requires inbound liquidity. Phoenix solves this by swapping on-chain for you.
- Routing can fail. If a route doesn't work, the wallet tries another. If it keeps failing, try again in a few seconds.
Where to use Lightning
Anywhere a Lightning invoice is shown at checkout. The directory lists vendors that accept Lightning — start with the vendors page and filter by "Lightning Network".