Bitcoin is first locked into a multi-signature address when a channel is opened (moving funds from Layer 1 into Layer 2 - The Lightning Network).
Once the channel exists, payments settle by updating channel balances using cryptographic mechanisms, such as HTLCs, which ensure funds are released only when the receiver can claim them. This process typically takes milliseconds to seconds, and the transaction is considered final once complete.
No blockchain confirmations are needed, and only the sender and receiver know that a transaction is taking place on the Lightning Network, adding a layer of security and privacy. Intermediary nodes only see their part of the route, not the full path or payment details.
Channels can remain open for long periods, especially when operated by service providers. A Bitcoin layer 1 transaction is used again only when channels are closed or rebalanced (by moving funds back on-chain, which requires a miner's confirmation).