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Lightning Network

The net of all Lightning Channels makes up the Lightning Network. This structure allows for the free flow of layer 2 transactions without the need to set up a channel to every individual you wish to pay. As long as there is a route of channels that can end up at the recipient, without any channel cap being less than the transaction amount, a lightning payment will be able to be routed. For example, if person A and B have a channel open with each other, and person B and C have a channel open with each other, person A will have the ability to transact with person C without needing a dedicated channel, as the payment will be able to automatically route through the Lightning Network.