The Lightning Community has grown 75% in dimension over the previous yr, hitting a document excessive 8,900 nodes for the primary time on Feb. 8, in response to LN screens at Bitcoin Visuals.
A big proportion of the rise occurred extra just lately, suggesting that some Bitcoiners are gravitating towards the layer-two resolution, doubtlessly as a method of escaping ever-increasing transaction fees.
The entire BTC locked in LN channels has remained within the 1,000 to 1,100 vary since Aug. 2020 — nonetheless the overall greenback worth has risen 250% within the intervening months, translating to a document $42.72 million presently locked on the community.
The entire variety of channels between nodes presently stands at about 38,600, which is the very best since Could 2019. This rely doesn’t signify channels between personal 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 remains to be dealing with an uphill battle to on-board new members, and is but to realize a significant degree 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 large exchanges have begun to undertake the community. In Dec. 2020, Kraken shared its plans to integrate the Lightning Network through the first half of 2021. OKEx made a similar announcement early final week and expects to roll out LN assist “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 primarily based 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 dimension cap, Poon and Dryja got down to create a manner during which BTC transactions could possibly be made off-chain. The consequence was an unbiased, sensible 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