# Payment Channels

The Lightning Network is made up of payment channels. Each channel represents an UTXO on the Bitcoin Blockchain and is cooperatively controlled by two peers, who can transact through that channel as frequently as they want.

{% content-ref url="payment-channels/lifecycle-of-a-payment-channel" %}
[lifecycle-of-a-payment-channel](https://docs.lightning.engineering/the-lightning-network/payment-channels/lifecycle-of-a-payment-channel)
{% endcontent-ref %}

{% content-ref url="payment-channels/etymology" %}
[etymology](https://docs.lightning.engineering/the-lightning-network/payment-channels/etymology)
{% endcontent-ref %}