In the Lightning Network, users can open a payment channel with one or more counterparties and send unlimited transactions between them without the need to broadcast each one to the blockchain. These transactions are only recorded on the main blockchain when the payment channel is closed, at which point the final balance is recorded on the blockchain.
One of the main benefits of the Lightning Network is that it allows for fast and cheap transactions, as the fees associated with on-chain transactions can be high, and transaction times can be slow due to the limited capacity of the blockchain. The Lightning Network also allows for increased privacy, as transactions can be conducted off the main blockchain, making them more challenging to track.
Many wallet providers, exchanges, and other Bitcoin-based services support the Lightning Network. It is considered an essential component of the long-term scalability and adoption of the Bitcoin network.