| description |
|---|
Payment channels are multisignature contracts between peers. Payments are made inside these payment channels and can be settled on the Blockchain. |
The Lightning Network is made up of payment channels. Each channel represents an UTXO on the Bitcoin Blockchain and is cooperatively controlled by two peers, who can transact through that channel as frequently as they want.
{% content-ref url="lifecycle-of-a-payment-channel.md" %} lifecycle-of-a-payment-channel.md {% endcontent-ref %}
{% content-ref url="etymology.md" %} etymology.md {% endcontent-ref %}