← Bitcoin Encyclopedia

Invoice

🌱 Beginner

💡 The Plain-English Definition

A Lightning invoice is a payment request — a short piece of data, often shown as a QR code, that tells the sender exactly how much to pay, where to send it, and when the request expires. It’s the standard way to receive a Lightning payment.

🤔 But Why Though?

On Bitcoin’s base layer, you can share the same address again and again to receive many payments — though that hurts your privacy. Lightning works differently. Each payment is routed using a specific payment hash — a unique cryptographic identifier generated just for that transaction — and once it’s used, that hash is spent and can’t be reused. So Lightning needs a fresh invoice for each payment.

The BOLT11 standard (Basis of Lightning Technology 11 — the specification that defines the invoice format) packs several details into a compact string starting with “lnbc” (for Bitcoin’s main network): the amount, the destination node’s public key, the payment hash, the expiry time (usually ten minutes to an hour, after which it’s invalid), and an optional description. When you scan a Lightning QR code in a wallet or a coffee shop, your wallet reads all this, finds a route to the destination, and sends the exact amount to the exact payment hash.

The contrast with a Bitcoin address is meaningful. A Bitcoin address is a destination that can receive any amount, at any time, indefinitely. A Lightning invoice is a single-use request for a specific amount with a set expiry — closer to a bill from a shop than an address on a letter.

🌍 The Real-World Analogy

A Lightning invoice is like a parking-ticket payment code — a specific reference number tied to a specific amount owed, with an expiry, issued for exactly one payment. You can’t use the same code to pay two different fines. You can’t use a code that expired yesterday. The code carries everything the payment system needs — who issued it, how much, when it expires — in a compact, scannable form. A Lightning invoice does exactly that for Bitcoin payments.

⚡ So What?

Invoices are the normal way to receive Lightning payments — you’ll generate one from your wallet whenever someone wants to pay you. A few practical things to know: invoices expire, so don’t create one until you’re ready to share it; the amount is usually fixed, so the payer can’t pay more or less than the invoice says (though zero-amount invoices exist for cases where the sender chooses the amount); and if one expires before it’s paid, just generate a new one.

📩 The Daily Bit · free

Get one plain-English Bitcoin email each morning.

The Daily Bit — free, two minutes, unsubscribe anytime.

The Bitcoin EncyclopediaPrefer a book? The Bitcoin Encyclopedia