Onchain and Lightning Network are two different approaches to conducting transactions on blockchain-based networks, such as Bitcoin. Here's a breakdown of their key differences:

Onchain Transactions:

Onchain transactions refer to transactions that are directly recorded on the blockchain. Each transaction is individually broadcasted to the network, verified by miners, and included in a block. Onchain transactions require network fees to be paid for each transaction, as they consume computational resources and block space. These transactions are typically slower compared to Lightning Network due to the time required for block confirmation. Lightning Network:

The Lightning Network is a layer-2 scaling solution built on top of a blockchain network (e.g., Bitcoin). It enables faster and cheaper transactions by creating off-chain payment channels. Lightning Network transactions are not immediately recorded on the blockchain but rather occur privately between participants. Only the opening and closing of payment channels are recorded on the blockchain. By using payment channels, users can conduct a series of transactions without involving the main blockchain for each one. Transactions on the Lightning Network are generally faster and have lower fees compared to onchain transactions. The Lightning Network is designed to facilitate microtransactions and increase the scalability of the underlying blockchain network. To summarize, onchain transactions occur directly on the blockchain and are slower and more expensive, while the Lightning Network leverages off-chain payment channels to enable faster and cheaper transactions, making it suitable for smaller, frequent transactions.