Bitcoin’s lightning network has surpassed a capacity of 1,000 BTC since its launch in 2018. The payment protocol which aims to solve the asset’s scaling issue has enabled users to send transactions speedily and with low-cost fees. There are also plans to allow small units of Bitcoin to be transferred using the network.
Bitcoin Lightning Network, a Second Layer on Blockchain
Bitcoin’s lightning network (LN) is known as a second layer on the Bitcoin blockchain. It makes use of a payment channel to allow two or more individuals transact. Here, all that is required is for a channel to be opened by one user and either party can send and receive funds speedily. The channel can also be left open for hours, days, or weeks before it is finally closed.
LN is believed to be the solution to Bitcoin’s scaling issue where thousands of transactions can be completed within a second. Therefore, it ensures that transactions are only recorded on the blockchain after the channel has been closed which helps to save time. It also helps to cut the high transaction fees that would’ve been levied to send payments at such speed.
CEO of Lightning Labs Announces Launch of Lightning Network
In March 2018, Elizabeth Stark, CEO of Lightning Labs announced the company’s beta implementation of the lightning network. Since then, the network capacity of the LN has incremented to 1,025 Bitcoin. In the same vein, 7,395 nodes and 39,329 channels have been created.
The LN became needful given that some businesses had stopped accepting bitcoin payments in 2017 which was attributed to the slow nature of completing transactions. Around that time, the virtual asset hit an all-time high of $20,000 and transactions took a lot of time to be completed despite the high fees that were paid.
Achievements of the LN Attributed to the Efforts of Community
The achievements of the LN can be attributed to some members of the crypto space such as Tippin.me. The company allows users to tip people on Twitter and websites using the Lightning network. Likewise, Hodlonaut, a Twitter user on January 19 began a trend where Bitcoin was transferred between individuals using the LN.
BTCNN on February 25 reported that the Bitcoin Lightning torch as the trend is called has passed through the hands of several users in over 40 countries. It has also been passed around over 187 times and the likes of Jack Dorsey, Twitter’s CEO, Fidelity Investments, a financial institution, and Erik Voorhees, ShapeShift’s CEO have all been torchbearers.