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Scaling · Modern Bitcoin

On-chain versus Lightning

On-chain transactions settle directly in Bitcoin blocks; Lightning transactions occur through payment channels and can later settle on-chain.

Why it matters

On-chain transactions settle directly in Bitcoin blocks; Lightning transactions occur through payment channels and can later settle on-chain.

Key ideas

Primary and technical sources

Bitcoin Developer DocumentationBitcoin.orgBitcoin: A Peer-to-Peer Electronic Cash SystemSatoshi Nakamoto

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