The Lightning Community has grown 75% in measurement over the previous 12 months, hitting a document excessive 8,900 nodes for the primary time on Feb. 8, in keeping with LN displays at Bitcoin Visuals.
A major proportion of the rise occurred extra lately, suggesting that some Bitcoiners are gravitating towards the layer-two resolution, doubtlessly as a way of escaping ever-increasing transaction fees.
The overall 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 document $42.72 million at present locked on the community.
The overall variety of channels between nodes at present stands at about 38,600, which is the very best since Might 2019. This rely 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 centered on financial inclusion, which requires decentralized unstoppable cash, which requires a payment 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 dealing with an uphill battle to on-board new contributors, and is but to realize 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 massive exchanges have begun to undertake the community. In Dec. 2020, Kraken shared its plans to integrate the Lightning Network in the course of the first half of 2021. OKEx made a similar announcement early final week and expects to roll out LN help “within the coming quarter.”
Bitfinex, which has offered fee-less conversions of LN funds for over a year, has taken the extra step of additionally supporting Liquid BTC, which is Blockstream’s competing smart contract-driven L2 solution. 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 become much faster and cheaper, with commonplace transaction charges being changed with Lightning’s median base payment of 1 satoshi.
The Lightning Community was initially conceived by Joseph Poon and Thaddeus Dryja, who published their white paper on the topic in Jan. 2016. Recognizing the constraints of Bitcoin’s (then) 1MB block measurement cap, Poon and Dryja got down to create a method wherein BTC transactions might be made off-chain. The outcome was an impartial, good contract-based community that has the potential to assist Bitcoin scale to a a lot increased throughput of transactions per second.
— Ryan Gentry (@RyanTheGentry) February 5, 2021