The Lightning Network grew 75% in the past year. first reached a record of 8,900 knots on February 8thAccording to LN monitors at Bitcoin Visuals.
A significant portion of the increase has been more recent, suggesting it Some Bitcoiners tend to opt for the second tier solution, possibly to avoid increasing transaction fees.
The total number of BTC blocked on LN channels has been in the 1,000-1,100 range since August 2020. Yet, The total dollar value has increased 250% in the past few months, which is a record $ 42.72 million that is currently blocked on the network.
The total number of channels between nodes is currently around 38,600This is not the highest value since May 2019. This number does not represent channels between private nodes.
I’ve been using the lightning network for 2 years. I already use it for monthly payroll. I continue to focus on economic inclusion, which requires decentralized, unstoppable money and a commission market. Unstoppable money with low fees stops … stops.
– Andreas M. Antonopoulos (@aantonop) February 5, 2021
Three years after its introduction, the Lightning Network is still faced with a tough battle to accept new market participants and has yet to achieve a significant level of acceptance. A lot of ordinary bitcoin users feel like this discouraged Because of the technical requirements for funding a Lightning node and maintaining a channel, transactions in the chain prefer to continue until the experience is less daunting.
Yet, Large exchanges have started to take over the network. In December 2020 Kraken shared its plans to integrate the Lightning network in the first half of 2021. OKEx made a similar announcement Early last week and expects LN support to be rolled out “next quarter”.
Bitfinex, The company, which has been offering commission-free conversions of LN funds for over a year, has taken the additional step of supporting Liquid BTC, Blockstream’s L2 solution based on smart contracts. Both Lightning and Liquid BTC can easily be exchanged for BTC in the Bitfinex chain.
As more exchanges join BTC deposit and withdrawal options based on the second tier, it is expected that money transfers between exchanges will be much faster and cheaper. The standard transaction fees are replaced by the average basic Lightning fee of 1 satoshi.
The Lightning Network was originally designed by Joseph Poon and Thaddeus Dryja, who published their whitepaper on the subject in January 2016. Poon and Dryja recognized the limitations of the (then) block size limitation of Bitcoin and set about creating a way for BTC transactions to take place off-chain. The result was an independent network based on smart contracts that has the potential to help Bitcoin scale to a much higher transaction throughput per second.
It describes Chapter 2 of #Bitcoin in such a direct and incredible way. Fasten your seat belt. pic.twitter.com/SKujGKeGuG
– Ryan Gentry (@RyanTheGentry) February 5, 2021
Don’t stop reading: