Tuesday, February 18, 2020

Bitcoin’s Lightning Network Reaches a Capacity of Over 1,000 BTCs

Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering Contact@ reigngracia@gmail.com

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.

Latest News

Samsung Could Become the Biggest Driver of Bitcoin’s Adoption

Samsung, a South Korean multinational conglomerate could potentially become one of the biggest drivers of Bitcoin's and Blockchain’s adoption....

OneConnect Announces Fourth Quarter and Full Year 2019 Unaudited Financial Results

Revenue Growth of 51% in the Fourth Quarter and 65% for the Full Year Premium Customer Number Increased from 221 to 473 for the...

Most Bearish Bitcoin Countries

Bitcoin has surged significantly in 2020 and its adoption has also increased. However, some countries are trying too hard to discourage their citizens from...

Love is in the air at Fair Go Casino

One lucky player will be one of the first to receive a Samsung Galaxy S20 Ultra smartphone after entering the popular online casino’s Valentine’s...

BitGo Acquires Digital Securities Platform Harbor

BitGo Extends Digital Asset Capabilities to Include Digital Securities PALO ALTO, Calif.--(BUSINESS WIRE)--#cryptocurrencies--BitGo, the leader in digital asset financial services, announced today that it is...
- Advertisement -