Earlier this year, the Lightning Network (LN) saw massive growth and continued adoption by the Bitcoin community. Just yesterday, Lightning Network was able to increase its capacity to over 1500 BTC.
This surge in activity and adoption shows that users are confident that they can safely conduct out-of-chain transactions through the LN. These payments are then secured on the blockchain by bilateral ledger entries.
This year alone, the Lightning Network saw a massive 42% growth in the number of BTC available. In addition, there are now over 12,000 nodes taking care of 45,000 payment channels. These bullish numbers are only expected to grow with the advent of cryptocurrency as any everyday form of payment.
Source: Arcane Research
Why does BTC need the Lightning Network?
Since its inception, Bitcoin has had problems with blockchain congestion and the associated higher fees during an influx of transactions. The LN aims to reduce these congestion while lowering transaction fees.
As the second layer payment protocol on Bitcoin, the Lightning Network is vital to enable users to microtransactions. Without the ability to conduct these transactions, BTC is obsolete for the common man due to higher fees and slower transaction times.
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Allowing users to conduct these smaller transactions is important to the adoption of cryptocurrencies that are used in our daily lives. For the global adoption of cryptocurrencies, it is essential to ensure that transactions are almost instant and completely secure. The scalability that the Lightning Network brings to the blockchain is critical to ensuring that this technology is no longer used as a traditional investment and more as a type of fiat currency.
In the past few weeks since El Salvador announced Bitcoin as legal tender, Bitrefill announced that they have processed over 10,000 transactions several times a day. This high number of transactions on the LN saved almost 2 blocks in the chain. This proves that the Lightning Network is applicable to everyday transactions and is helping to scale Bitcoin for everyone to use.
Will Twitter integrate with the Lightning Network?
In another big win for the Lightning Network launch, Twitter CEO Jack Dorsey responded to a tweet last Thursday asking about integration with Twitter or Bluesky, a new decentralized social media protocol that is being built. His answer was short and sweet:
It’s only a matter of time
– jack (@jack) June 11, 2021
With the continued adoption of blockchain technology, the Lightning Network will be a critical integration for everyday app users who transact with crypto. While there is still no integration, Jack Dorsey’s answer to the question is illuminating.
Related reading | The Bitcoin community is celebrating the launch of the Crucial Lightning Network project
Soon, apps around the world will be developed with blockchain technology in mind to make transactions through transactions in the Lightning Network continuously easier, faster and more secure than ever.
Featured Image Source: Nastya Dulhiier on Unsplash