Lightning Network Protocol Architecture and its Role in Blockchain Scalability

Citation: Yevhenii Shcherbina, "Lightning Network Protocol Architecture and its Role in Blockchain Scalability", Universal Library of Innovative Research and Studies, Volume 02, Issue 03.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The article is devoted to the analysis of the Lightning Network protocol architecture and its role in addressing the blockchain scalability problem. The relevance of the study is driven by the growing throughput requirements of decentralized networks that cannot be met at the base layer (Layer-1). The novelty lies in the systematization and analysis of recent research on economic models, security, and network topology. The work describes the fundamental scalability limitations of blockchains using Bitcoin as an example and examines the key components of the Lightning Network: payment channels and hashed timelock contracts (HTLC). Special attention is paid to payment routing mechanisms and liquidity management challenges. The study sets the objective of assessing the effectiveness and maturity of the protocol as a second-layer solution. To achieve this objective, methods of systematic literature review and comparative analysis are employed. The conclusion outlines the advantages of the protocol, as well as unresolved issues such as the risk of centralization and routing complexity. The article will be useful for researchers, developers, and specialists in the field of blockchain technologies.

Keywords: Lightning Network, Blockchain, Scalability, Bitcoin, Layer-2, Payment Channels, HTLC, Micropayments, Payment Routing, Decentralization.

https://doi.org/10.70315/uloap.ulirs.2025.0203008