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Through the opening of these channels, it is possible to operate with a class of payments called HTLC (Hashed TimeLock Contracts) that use functions such as Timelocks. A Timelock is a type of smart contract that limits the spending of a certain amount of BTC until a future date or specific block height. 

As soon as the channel is closed, the most recent status of the off-chain ledger is uploaded to the Bitcoin Blockchain, updating the balance of all participants. 

Its function also improves interoperability between different blockchains that support the same crypto assets, allowing transactions between different cryptocurrencies on separate blockchains, thanks to a function called "Atomic Swap".

Thanks to LN it will now be possible to conceive new types of applications in ways previously unthought out; for example, micro-payments become possible thanks to the high reduction in transaction fees, compared to traditional payment methods such as VISA and MasterCard. This will allow remuneration for the performance of an employee by the minute, or even by the second.