Lightning Network fees

Each Lightning Network payment requires a small fee. Usually, around $0.001, the fee is paid to the nodes which process the transaction, allowing them to keep their nodes well connected and increase the payment success rate.

To pay with the Lightning Network, the sender needs to open a payment channel with the receiver. The sender then sends the payment through the Lightning Network, which is routed through the network to the recipient. Once the payment is received, it is then secured and stored in the channel, and both parties are notified. The payment is then confirmed on the Bitcoin network when both parties close the payment channel.

At Xapo, we maintain our own well-connected node through which we process our members' transactions. Xapo members can seamlessly execute Lightning Network transactions just by scanning a QR code via their Xapo Bank app, without being worried about payment channels.