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Glossary Term:

Lightning Channel

Lightning Channels comprise the Lightning Network as a Layer 2 solution on top of the blockchain. These are what enable users on the Lightning Network to send and receive Bitcoin to and from other users. They are channels that are opened on the main Bitcoin blockchain that can then allow the free flow of Bitcoins around without the need for creating new transactions on the main chain. These channels have a Bitcoin capacity that was set when the channel was opened from the main chain.