Cardano’s development team unveiled the Cardano Lightning state channel system during a Developer’s Office Hour session on August 24. This architecture borrows from Bitcoin’s Lightning Network while running natively on Cardano’s eUTXO model, enabling fast payments with minimal or zero fees. The system uses a forked Lightning Development Kit (LDK) Node, a Rust-based relay for network coordination, and a liquidity manager smart contract. The Konduit protocol enables customers to pay in ADA while merchants receive native BTC over the Lightning Network without wrapped tokens or cross-chain bridges. Deployment is currently in pre-production with positive but measured community reaction.
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