Bitcoin Lightning Network which has been seen as the solution to most of Bitcoin’s Scalability issues has shown massive growth in the last month. The network has risen by 23% in last month itself, according to data by 1ML.
Bitcoin Lightning Network was used as the second layer solution to the increasing scalability faced on the Bitcoin network. The pioneer cryptocurrency has grown in leap and bounds since its inception in 2009, and as the number of transactions and volume increases, the network faces a lot of scaling difficulty and processing the transactions.
The first tryst with the scalability issue was experienced when the Bitcoin reached its peak value of $20,000.
How Does Lightning Network Solve the Scalability Problem?
The lightning network can process Bitcoin transaction off-chain, with instant, low cost and secure transactions.
Currently, the off-chain scaling solution can handle 552 BTC worth $2.23 Million at its peak, which in itself is a great achievement.
Despite the bearish trends plunging the market prices, Lightning Network seems to go about its business and making some significant progress on its way too.
The experts believe, that the 500 BTC was a major milestone for the network and the progress shows that the network is not just fulfilling the work it was assigned but making exponential progress along the way.
The rise of Bitcoin Lightning network has affected the whole Bitcoin ecosystem. A few examples that show the recent growth includes,
- The r/bitcoin subreddit saw a 61% growth in members.
- Bitcoin’s market dominance recovered from its all-time low of 32.5% to a yearly high of close to 58%.
- Bitcoin hash rate has doubled, contrary to what the mainstream media is saying.
- Bitcoin’s price dropped just over 80% while the majority of altcoins dropped well over 90%.
These stats are clear writing on the wall that Bitcoin is nearing the aim of becoming a mode of cashless transaction. Even the number of vendors accepting Bitcoin is on the rise if it manages to get past the scalability problems.
The news about the significant progress by Lightning Network could be the best thing for the Bitcoin network. Bitcoin has always faced the scalability scars since its peak rise of $20,000. With Lightning Network taking off the burden even for 500 BTC can help the network in countering transaction issues.
With more development work going behind the Lightning Network, it might push the Bitcoin mania to a larger audience which may include large centralized banks as well. Once Bitcoin gets past the scalability issue, its adaptation in the main financial ecosystem will boom to new heights.