What most users fail to notice is that the Bitcoin Layer 2 payment protocol Lightning Network has been expanding.
The Lightning Network was first proposed in 2015 and launched a beta version in 2018. In the past few months, its adoption rate and features have been accelerating.
The Lightning Network allows users to send fast and low-cost transactions through its payment channels. Unlike the Bitcoin-based layer, the Lightning Network uses an “off-chain” processing method called “gossip and probing” to enable nodes to follow possible transaction paths .
Arcane Research recently published a report exploring whether this Bitcoin-based network will have a similarly strong momentum as decentralized finance during the “DeFi Summer” period in July 2021.
During this period, the market is frenzy, and it seems that everyone is beginning to be interested in DeFi-DApps.
The research firm’s data shows that the Lightning Network increased its capacity from 1,100 to 1,200 in 39 days. Later, it only took 34 days to go from 1,200 to 1,300 , as shown in the figure below.
Currently, the capacity of the Bitcoin-based Lightning Network is approximately 1800 BTC. The time it takes to expand has been shortening, and it took 5 days to rise from 1,700 bitcoins to the current bitcoin value of 60 million U.S. dollars.
In comparison, at the beginning of 2021, this indicator was 1,040 Bitcoins. Arcane Research reports that the Lightning Network has grown by 70% in less than 6 months .
In contrast, it took three years for the Lightning Network to grow from zero to 1,000 bitcoins.
The number of activated nodes on the network has grown exponentially. The current indicator is 22,705, but Arcane Research pointed out that only 12,079 are active payment channels, and the number of activated nodes has exceeded 55,000.
Arcane Research pointed out: “This rapid growth may be due to more and more users using the Lightning Network. In recent weeks, the network’s exposure and demand have increased. At the same time, the El Salvadoran government has adopted Bitcoin as a legal tender.”
So, can Bitcoin be mainstreamed at the top of the Lightning Network?
This factor may facilitate Bitcoin’s first step towards reaching a wider user base. The Bitcoin Beach project in El Salvador has proven that Bitcoin can be used as a daily, low-cost use case.
As former Google employee Michael Levin pointed out in his opinion, “The Lightning Network is an important application that can help Bitcoin bridge the gap. This payment protocol may promote a new round of Bitcoin adoption .”
According to its adoption curve, Bitcoin is still in the early stages of adoption, and the gap between them and early users must be narrowed.
These users are usually more pragmatic and need a solution to meet their specific needs. The Lightning Network can conduct fast and low-cost transactions, which may create conditions for Bitcoin to become mainstream.
Levin pointed out, “ With the Lightning Network and aggressive users, the Bitcoin network has unlocked the power of human wisdom and choice in its race across the chasm .”
At the time of writing this report, the transaction price of Bitcoin was $32,409, a drop of 1.4% on the day. Bitcoin is currently facing tremendous selling pressure, and unless the bulls take decisive action, further declines may occur.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/credit-for-el-salvador-bitcoin-lightning-network-reaches-record-growth/
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