Bitstamp, the well-known cryptocurrency exchange from Europe, has recently set up its very own Lightning Network node. The company announced this development through its Twitter page on the 8th of July 2019. This news was enthusiastically welcomes by crypto users, as this is expected to greatly improve the network’s capabilities.
Serving as a second layer on the Bitcoin blockchain, Lightning Network works to ensure that the market’s top cryptocurrency can operate effectively. It ensures fee-less transactions that are also tremendously speedy because of the direct payment channels established between users. The key advantage of this protocol seems to be the fact that it will tackle Bitcoin’s long-standing scalability problems head-on by keeping most of the transactions off-chain.
Bitstamp is planning to encourage the growth of its own network by launching its own Lightning Network node. At the same time, it is also trying to promote greater adoption of this technology within the crypto industry as a whole. As the official announcement explains, the problem of scalability is what the company is essentially trying to target. It says:
“One of the biggest questions facing Bitcoin has always been: can it scale? Will it be able to handle millions of people using it for small payments in their everyday lives? The Lightning Network provides a promising answer to these questions.”
As Bitstamp explained, the introduction of more nodes to the Lightning Network will help boost activity levels, as nodes basically act as its foundational units. Since the addition of new nodes help to create more payment channels, thereby increasing the network liquidity and the network’s transactional capabilities.
Clearly, this has been a very interesting and welcome development for the crypto community. We can only hope Lightning Network finds greater adoption in the near future.