Zero Confirmation Channels

A zero-confirmation channel, also known as a “zero-conf” channel, is a Lightning Network payment channel. It allows users to send and receive transactions immediately after the channel opening transaction is broadcasted, but before the funding transaction is confirmed on the Bitcoin blockchain. This enables faster transactions without waiting for the blockchain confirmation.

These channels operate through a 2-of-2 multisig contract, requiring both parties to approve any transactions. To minimize trust issues and prevent double-spending before confirmation, a third-party co-signer like Lightning Pool can be used. Actual bitcoin ownership doesn’t transfer until the funding transaction is confirmed, providing immediate liquidity without changing ownership during the unconfirmed state. This makes the Lightning Network more efficient, accessible, and maintains higher liquidity levels.