![ln_sc.png](https://cdn.steemitimages.com/DQmbWWHJpga5cZvY5nhSRNPRVSkavAEKKbjXMk3Qr2HJuWd/ln_sc.png)

Lightning Network is a second-tier payment protocol that works on a blockchain (mainly for Bitcoin). Designed to securely conduct offline transactions, the lightning network essentially uses a hash time locked smart contract to securely perform a zero-recognition transaction. By setting up a clever 'smart contract', the user's unconfirmed transactions on the Lightning Network are as secure as gold (or Bitcoin). A status channel essentially provides state maintenance services between different entities by establishing a two-way channel between different users and services. It allows many operations on the blockchain to be managed outside the chain. The final result is chained after the multi-party signature is confirmed after completing the out-of-chain operation.

Bitcoin and Ethereum respectively proposed off chain protocols such as lightning network and status channel to provide support for immediate arrival and large-scale concurrent demands. But such agreements result in high transaction costs and asset liquidity issues It is both difficult to apply to small-volume high-frequency trading needs, and prevent centralization trends. Ambr's off-chain protocol differs from the lightning network in its normal state channel by introducing an observer role to punish the malicious and to ensure the benefits of both parties in a high-frequency off-chain transaction. This model has highly scalablility.

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