{
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  "schemaVersion": "1.0.0",
  "id": "bitcoin-onchain-vs-lightning",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/bitcoin-onchain-vs-lightning/",
  "collection": "bitcoin",
  "title": "On-chain Bitcoin versus Lightning: choose the correct payment route",
  "description": "Compare a Bitcoin on-chain payment with Lightning by payment destination, settlement, fees, availability and recovery needs.",
  "aliases": [
    "bitcoin onchain vs lightning",
    "bitcoin onchain vs lightning explained"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:29:20.637Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "An on-chain Bitcoin payment creates a transaction for inclusion in the public blockchain. A Lightning payment changes channel balances through a separate payment protocol, usually without recording each payment on-chain. Both can transfer bitcoin, but they use different payment requests, fee models and recovery procedures. Choose the method the recipient actually supports and inspect the wallet’s final amount and fees.",
    "claimId": "bitcoin-onchain-vs-lightning-quick-answer",
    "sourceIds": [
      "x425-btc-dev-transactions",
      "x425-btc-ln-cycle",
      "x425-btc-ln-lifecycle"
    ]
  },
  "keyFacts": [
    {
      "label": "On-chain record",
      "value": "A transaction enters the shared blockchain",
      "sourceIds": [
        "x425-btc-dev-transactions"
      ],
      "id": "on-chain-record",
      "claimId": "bitcoin-onchain-vs-lightning-fact-on-chain-record"
    },
    {
      "label": "Lightning record",
      "value": "Individual payments usually update channels",
      "sourceIds": [
        "x425-btc-ln-lifecycle"
      ],
      "id": "lightning-record",
      "claimId": "bitcoin-onchain-vs-lightning-fact-lightning-record"
    },
    {
      "label": "Availability",
      "value": "A normal Lightning payment needs responsive nodes",
      "sourceIds": [
        "x425-btc-ln-cycle"
      ],
      "id": "availability",
      "claimId": "bitcoin-onchain-vs-lightning-fact-availability"
    }
  ],
  "prerequisites": [
    "lightning-network-explained",
    "bitcoin-confirmations"
  ],
  "sections": [
    {
      "id": "destination",
      "heading": "Use the right kind of payment request",
      "sourceIds": [
        "x425-btc-bip321",
        "x425-btc-bolt11",
        "x425-btc-bolt12",
        "x425-btc-ln-lifecycle",
        "x425-btc-ln-loop-fees"
      ],
      "paragraphs": [
        "An ordinary Bitcoin address describes an on-chain destination. A Lightning invoice provides information for a Lightning payment. A payment link can offer several methods, but its QR shape does not tell you which method the wallet selected.",
        "Check the decoded amount, network and payment method. A wallet may arrange a swap or open a channel behind the interface; those extra operations can add costs and waiting time."
      ]
    },
    {
      "id": "example",
      "heading": "Compare the whole cost of a small payment",
      "sourceIds": [
        "x425-btc-ln-payments",
        "x425-btc-ln-loop-fees",
        "x425-btc-dev-transactions"
      ],
      "paragraphs": [
        "Suppose a shop accepts 20,000 satoshis. One hypothetical wallet quotes 800 satoshis for an on-chain transaction; another quotes 15 satoshis for routing a Lightning payment over existing channels. The quoted totals are 20,800 and 20,015 satoshis. These are examples, not typical or guaranteed fees.",
        "If the second wallet also requires an on-chain setup transaction or a service charge, include that cost. A routing fee alone is not the complete price of every Lightning workflow."
      ]
    },
    {
      "id": "settlement",
      "heading": "Completion and recovery look different",
      "sourceIds": [
        "x425-btc-ln-payments",
        "x425-btc-ln-recovery",
        "x425-btc-dev-payment-processing",
        "x425-btc-ln-cycle",
        "x425-btc-dev-wallets"
      ],
      "paragraphs": [
        "For on-chain payments, watch transaction inclusion and the recipient’s confirmation policy. For Lightning, check the wallet’s final payment status. A pending payment is not equivalent to a confirmed failure.",
        "An offline recipient can receive an on-chain output. Ordinary Lightning payments need the receiving node or its service online. A Lightning node’s channel recovery can require information beyond the seed used for its on-chain keys."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does every Lightning payment create a Bitcoin transaction?",
      "answer": "No. Normal channel payments update channel balances without placing each payment on the blockchain. Opening, closing and some recovery or liquidity operations can involve on-chain transactions.",
      "sourceIds": [
        "x425-btc-ln-lifecycle"
      ]
    },
    {
      "question": "Can I paste a Lightning invoice into any Bitcoin wallet?",
      "answer": "Only a wallet that supports the relevant Lightning payment format and method can use it. A shared Bitcoin brand or QR scanner does not establish compatibility.",
      "sourceIds": [
        "x425-btc-bolt11",
        "x425-btc-bip321"
      ]
    }
  ],
  "claims": [
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      "id": "bitcoin-onchain-vs-lightning-quick-answer",
      "articleSlug": "bitcoin-onchain-vs-lightning",
      "statement": "An on-chain Bitcoin payment creates a transaction for inclusion in the public blockchain. A Lightning payment changes channel balances through a separate payment protocol, usually without recording each payment on-chain. Both can transfer bitcoin, but they use different payment requests, fee models and recovery procedures. Choose the method the recipient actually supports and inspect the wallet’s final amount and fees.",
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      "sourceLocators": [
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          "sourceId": "source-b282fdecc069b74d",
          "locator": "Introduction; Spending An Output; P2PKH Script Validation; Multisig; Transaction Fees And Change; Avoiding Key Reuse"
        },
        {
          "sourceId": "source-a021bc3231273474",
          "locator": "Introduction: sender and receiver interaction; Create invoice; Make the payment; Check the payment; Other payment types"
        },
        {
          "sourceId": "source-d0625e6983c0ac55",
          "locator": "Opening a channel; Sending funds through a payment channel; Closing a channel; Cooperatively; Non-cooperatively"
        }
      ],
      "scope": {
        "collection": "bitcoin",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "Educational explanation. Product-specific behavior is scoped to the cited documentation, checked 2026-10-02.",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:29:20.637Z",
        "reviewer": "Independent automated verification — Codex /root/verify_ethereum_100, separate from the Bitcoin drafting agent",
        "notes": [
          "Checked on-chain output flow versus channel updates, recipient availability and LND recovery.20,800/20,015sat hypothetical totals checked. Added direct channel setup/swap cost and availability sources to the relevant sections."
        ]
      }
    },
    {
      "id": "bitcoin-onchain-vs-lightning-fact-on-chain-record",
      "articleSlug": "bitcoin-onchain-vs-lightning",
      "statement": "On-chain record: A transaction enters the shared blockchain",
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        "source-b282fdecc069b74d"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-b282fdecc069b74d",
          "locator": "Introduction; Spending An Output; P2PKH Script Validation; Multisig; Transaction Fees And Change; Avoiding Key Reuse"
        }
      ],
      "scope": {
        "collection": "bitcoin",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "checkedAt": "2026-10-02T19:29:20.637Z",
        "reviewer": "Independent automated verification — Codex /root/verify_ethereum_100, separate from the Bitcoin drafting agent",
        "notes": [
          "Checked on-chain output flow versus channel updates, recipient availability and LND recovery.20,800/20,015sat hypothetical totals checked. Added direct channel setup/swap cost and availability sources to the relevant sections."
        ]
      }
    },
    {
      "id": "bitcoin-onchain-vs-lightning-fact-lightning-record",
      "articleSlug": "bitcoin-onchain-vs-lightning",
      "statement": "Lightning record: Individual payments usually update channels",
      "sourceIds": [
        "source-d0625e6983c0ac55"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-d0625e6983c0ac55",
          "locator": "Opening a channel; Sending funds through a payment channel; Closing a channel; Cooperatively; Non-cooperatively"
        }
      ],
      "scope": {
        "collection": "bitcoin",
        "dataAsOf": "2026-10-02",
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      "qualification": "",
      "evidenceStatus": "documented",
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        "notes": [
          "Checked on-chain output flow versus channel updates, recipient availability and LND recovery.20,800/20,015sat hypothetical totals checked. Added direct channel setup/swap cost and availability sources to the relevant sections."
        ]
      }
    },
    {
      "id": "bitcoin-onchain-vs-lightning-fact-availability",
      "articleSlug": "bitcoin-onchain-vs-lightning",
      "statement": "Availability: A normal Lightning payment needs responsive nodes",
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      "sourceLocators": [
        {
          "sourceId": "source-a021bc3231273474",
          "locator": "Introduction: sender and receiver interaction; Create invoice; Make the payment; Check the payment; Other payment types"
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        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-btc-dev-transactions",
      "label": "Transactions",
      "publisher": "Bitcoin developer documentation",
      "url": "https://developer.bitcoin.org/devguide/transactions.html",
      "locator": "Introduction; Spending An Output; P2PKH Script Validation; Multisig; Transaction Fees And Change; Avoiding Key Reuse",
      "note": "Inputs, outputs, authorization, change, coinbase exceptions and fee accounting.",
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    {
      "id": "x425-btc-ln-cycle",
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      "locator": "Introduction: sender and receiver interaction; Create invoice; Make the payment; Check the payment; Other payment types",
      "note": "Invoice-first Lightning flow, routes and settlement preimages.",
      "version": "Pinned Lightning Labs documentation revision; LND/Loop implementation scope",
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      "locator": "Opening a channel; Sending funds through a payment channel; Closing a channel; Cooperatively; Non-cooperatively",
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      "locator": "General rules for handling (important!); General Format; Query Keys; Transfer amount; Forward compatibility; Backward compatibility",
      "note": "Successor payment URI scheme and wallet-dependent payment instructions.",
      "version": "Pinned BIPs revision",
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      "locator": "Human-Readable Part; Data Part; Tagged Fields; Payer / Payee Interactions; Payer / Payee Requirements",
      "note": "Invoice amounts, payment hashes, expiry, signing and feature constraints.",
      "version": "Pinned BOLTs revision",
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      "locator": "Limitations of BOLT 11; Payment Flow Scenarios; Offers; Invoice Requests; Invoices; Payer Proofs",
      "note": "Reusable offers produce separate invoice requests and authenticated invoices.",
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      "locator": "Loop Out: Estimated fees, Actual fees; Loop In: Estimated fees, Actual fees",
      "note": "Service, chain and routing fees must be included when evaluating a swap.",
      "version": "Pinned Lightning Labs documentation revision; LND/Loop implementation scope",
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      "locator": "Requesting Payments; Verifying Payment; Issuing Refunds",
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      "locator": "Wallet Programs; Full-Service Wallets; Signing-Only Wallets; Wallet Files; Hierarchical Deterministic Key Creation; Loose-Key Wallets",
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  "related": {
    "articles": [
      "lightning-network-explained",
      "bitcoin-confirmations",
      "lightning-routing-fees",
      "lightning-invoices"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “On-chain Bitcoin versus Lightning: choose the correct payment route.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/bitcoin-onchain-vs-lightning/"
}