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ADA · 2w

How does the Cardano L2 (Hydra) compare to the Lightening Network?

Hello, I recently stumbled across a diagram which shows how L2 for Cardano works. It shows that transactions are processed on the second layer while it is settled on the first layer. How does this compare to the Lightening Network? Is there a routing mechanism? Do people have to share mutual payment channels in order to transact? I like the concept of one layer for transacting and one layer for settlement, however the main matter is if a second layer for transacting would be as inefficient as the Lightening Network is.
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