The Lightning Community has grown 75% in dimension over the previous 12 months, hitting a file excessive 8,900 nodes for the primary time on Feb. 8, in accordance with LN screens at Bitcoin Visuals.
A major proportion of the rise occurred extra not too long ago, suggesting that some Bitcoiners are gravitating towards the layer-two answer, doubtlessly as a method of escaping ever-increasing transaction charges.
The whole BTC locked in LN channels has remained within the 1,000 to 1,100 vary since Aug. 2020 — nevertheless the overall greenback worth has risen 250% within the intervening months, translating to a file $42.72 million presently locked on the community.
The whole variety of channels between nodes presently stands at about 38,600, which is the very best since Might 2019. This depend doesn’t characterize channels between non-public nodes.
I have been utilizing the lightning community for two years. I already use it for month-to-month payroll.
I am nonetheless targeted on financial inclusion, which requires decentralized unstoppable cash, which requires a charge market.
Stoppable cash with low charges will get… stopped.
— Andreas M. Antonopoulos (@aantonop) February 5, 2021
Three years after launch, the Lightning Community continues to be going through an uphill battle to on-board new individuals, and is but to attain a significant stage of adoption. Many common customers of Bitcoin are off-put by the technical necessities of funding a Lightning node and sustaining a channel, preferring to stay with on-chain transactions till the expertise turns into much less daunting.
Nonetheless large exchanges have begun to undertake the community. In Dec. 2020, Kraken shared its plans to combine the Lightning Community in the course of the first half of 2021. OKEx made an analogous announcement early final week and expects to roll out LN help “within the coming quarter.”
Bitfinex, which has provided fee-less conversions of LN funds for over a 12 months, has taken the extra step of additionally supporting Liquid BTC, which is Blockstream’s competing sensible contract-driven L2 answer. Each Lightning and Liquid BTC can readily be exchanged for BTC on-chain at Bitfinex.
As extra exchanges onboard second layer based mostly deposit and withdrawal choices for BTC, inter-exchange fund transfers are predicted to grow to be a lot sooner and cheaper, with normal transaction charges being changed with Lightning’s median base charge of 1 satoshi.
The Lightning Community was initially conceived by Joseph Poon and Thaddeus Dryja, who revealed their white paper on the topic in Jan. 2016. Recognizing the restrictions of Bitcoin’s (then) 1MB block dimension cap, Poon and Dryja got down to create a method by which BTC transactions could possibly be made off-chain. The end result was an unbiased, sensible contract-based community that has the potential to assist Bitcoin scale to a a lot greater throughput of transactions per second.
You could learn what Ross Stevens, Government Chairman of NYDIG, stated to @michael_saylor yesterday about how he is leveraging the #LightningNetwork, @ln_strike and @lightning. ⚡
It describes #Bitcoin’s Chapter 2 in such a direct and unbelievable method. Buckle up. pic.twitter.com/SKujGKeGuG
— Ryan Gentry (@RyanTheGentry) February 5, 2021