Bitcoin Lightning.
⚡ What is the Bitcoin Lightning Network?
The Bitcoin Lightning Network is a so-called Layer 2 network built on top of Bitcoin.
It enables instant and very inexpensive payments by processing transactions not directly on the Bitcoin blockchain, but via payment channels outside the blockchain (off-chain).
This makes Lightning particularly suitable for:
- small amounts
- quick everyday payments
- microtransactions such as tips or vouchers (e.g., our 21 sats).
🧩 Why does Bitcoin need Lightning?
Every monetary system must find a compromise between three properties:
decentralization, security, and scalability.
This tension is known as the "trilemma."
A system can usually only fulfill two of these properties very well at the same time.
Bitcoin is particularly strong in:
✔ decentralization
✔ security.
As a result, transactions on the main blockchain are intentionally slower and more expensive.
Bitcoin only processes about 7 transactions per second, which is not sufficient for a global payment system on its own.
🚀 The solution: A second level.
To use Bitcoin as a means of payment in everyday life, an additional layer is needed for fast and inexpensive payments.
The Lightning Network was developed precisely for this purpose.
Lightning handles scalability, while Bitcoin itself continues to ensure security and decentralization.
This creates a system that is:
- secure in the background (Bitcoin)
- fast and inexpensive for everyday use (Lightning)
Our Lightning infrastructure.
We use our own Lightning infrastructure to process 21 sats.
This runs on a Virtual Private Server (VPS) at Hetzner and consists of an Alby Hub Lightning Node and the LNbits management system.
Both components are open-source software and allow for transparent and traceable processing of Lightning payments.
Why not third-party or custodial solutions?
Many Lightning applications rely on third-party or so-called custodial solutions, where users or operators don't have full insight into the technical processing.
We deliberately chose not to use these. By operating our own infrastructure, we retain control over the payout of 21 sats and can make the process transparent – without dependence on external payment service providers.
Bitcoin is the foundation.
Lightning is the fast payment layer on top.
