Lightning Network vs Spark: Bitcoin L2 Comparison

Lightning Network is optimized for fast payments, while Spark is designed for DeFi functionality including AMMs, stablecoins, and smart contracts on Bitcoin. They're complementary layers, not competitors.

Flashnet Team|February 11, 2026

What Is the Lightning Network?

The Lightning Network is Bitcoin's most established layer-2 solution, launched in 2018. It creates payment channels between users that enable instant, near-zero-fee Bitcoin transactions. Lightning excels at micropayments and point-of-sale transactions.

Lightning's limitation is that it's primarily a payment network. It doesn't support complex smart contracts, stablecoins, or DeFi protocols natively. You can send Bitcoin fast and cheap, but you can't trade, provide liquidity, or hold stable-value assets.

Spark is a newer Bitcoin layer-2 that extends Bitcoin with programmable transaction capabilities. Unlike Lightning's payment channels, Spark supports stateful smart contracts, stablecoins (like USDB), AMMs, and order book trading. Spark inherits Bitcoin's security while adding the DeFi capabilities previously only available on Ethereum.

Key Differences

Lightning excels at: instant payments, micropayments, point-of-sale, tipping, and payment streaming. It has widespread wallet support and growing adoption across exchanges and apps.

Spark excels at: decentralized trading, AMMs, stablecoins, lending, yield generation, and programmable financial instruments. It's newer but purpose-built for DeFi.

Both derive security from Bitcoin's base layer. Both have low transaction fees. The difference is in what they enable — Lightning is a payment network, Spark is a DeFi platform.

How Flashnet Uses Spark

Flashnet is built on Spark, leveraging its smart contract capabilities for non-custodial trading, AMM liquidity pools, order book matching, and USDB stablecoin operations. Flashnet helped design key aspects of Spark's architecture to optimize for trading use cases.

Compare Spark with other Bitcoin L2s using the L2 Comparison Table.

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