Pintermediate
7 min read
Payment Channels
A two-party smart contract enabling unlimited off-chain transactions with only two on-chain events (open + close). The fundamental building block of Lightning.
lightninglayer2scalability
What is Payment Channels?
A two-party smart contract enabling unlimited off-chain transactions with only two on-chain events (open + close). The fundamental building block of Lightning.
Why It Matters
Understanding Payment Channels is essential for anyone serious about Bitcoin. This concept forms a key building block of how Bitcoin works and why it's valuable.
Key Points
- This is a core Bitcoin concept at the intermediate level
- Related to: lightning, layer2, scalability
- Estimated reading time: 7 minutes
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