Bitcoin’s Lightning Network has been in the news over the past few months for its widespread adoption and implementation by a majority of mainstream players.
Since Bitcoin’s inception, the virtual currency has not really been able to facilitate widespread adoption due to its relatively high transaction fees and significant transaction time of 10 minutes per block. Due to these factors, many users and crypto-analysts had come to the conclusion that Bitcoin’s functionality as a widely accepted currency is irrelevant and that it will function better as a store of value.
This was one of the major reasons why the Lighting Network was developed; to act as a second-layer payment protocol designed to work on top of the Bitcoin[BTC] network. The Lightning Network was expected to bring answers and allow Bitcoin to solve its persisting scalability issues.
The implementation of the second-layer protocol was meant to enable transactions to be processed off-chain, both rapidly and with marginal fees. Now, according to recent reports from p2sh.info, the Lightning Network has experienced a staggering 830% increase in capacity over the past six months.
As it can be observed from the graph, the rate of increased capacity of the Lightning Network in terms of Bitcoins handled hiked staggeringly from being 112.3 BTC in October 2018 to 710 BTC, at press time.
The progress can also be tracked by looking into other variables, such as the number of nodes, network capacity, new and active channels developed, among others. According to data from 1ml.com, the number of nodes has increased by an impressive 15.82% over the past 30 days, coming up to 6,479 now. The number of channels has also seen a significant 34.8% hike over the past month.
The network capacity is currently at 710.13 BTC, which is a 28% hike and over the past 24 hours, around 937 new channels have been added to the network. The average transaction fee over the Lightning Network remained at 1 Satoshi.
The stats demonstrate Lightning Network’s huge growth and potential over time and indicate a rising rate of adoption by the network for faster and convenient transactions.
However, it is important to note that the Lightning Network protocol is still considered as ‘beta,’ despite witnessing significant support and applause from the Bitcoin community.
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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