More People Are Using BTC's Lightning NetworkMarch 31, 2023
There is good news and there is even better news. The good news is that bitcoin has been doing relatively well as of late. The currency recently hit a six-month high and many investors are becoming more hopeful that the horrors of 2022 are finally being left behind for good. The even better news is that bitcoin adoption appears to be growing, as use of the Lightning Network has hit a new high.
Use of the Lightning Network Is More Common Than Ever
The heavy use of the Lightning Network suggests that bitcoin is now – at least on a somewhat regular basis – being viewed as a form of currency. It’s being used to purchase goods and services. Richard Mico – US CEO of Banxa, a payment and compliance infrastructure provider – said in a recent interview:
The development in terms of building out crypto payments has continued apace, even if it’s gone somewhat unnoticed because of the volatility in the broader market. Crypto is evolving into a viable alternative for more and more people around the world.
The original goals of bitcoin and its digital counterparts are thus much closer to being achieved. What many people likely forget is that while bitcoin and many of its crypto cousins have taken on either speculative or even hedge-like statuses in recent years, many of them were initially designed to serve as payment tools. They were built to push checks, credit cards, and fiat currencies to the side, but this has been a relatively slow journey given the volatility that continues to drag them down.
It is extremely hard to understand when bitcoin and its crypto family will go up or down when it comes to their prices. Many stores and companies have been reluctant to say “yes” when it comes to accepting crypto payments for this reason, and to a degree, we can’t blame them.
Consider the following scenario: someone walks into a store and buys $50 worth of merchandise with bitcoin. For one reason or another, the store doesn’t trade the BTC into fiat right away and about 24 hours go by. From there, the price of BTC goes down and that $50 becomes $40. The customer gets to keep everything he or she bought, but the store has lost money in the end. Is this a fair situation? Not everyone thinks so.
Making Smaller Transactions Happen Faster
The Lightning Network is considered a solid “division” of the bitcoin arena given that it was designed to aid the digital currency by making its transaction processes faster and more efficient. Basically, many smaller or less heavy transactions occurring in bitcoin take place on the Lightning Network (off-chain) as a means of preventing congestion in the BTC space.
This also ensures that the transactions occur much faster, and people can get their money sooner.
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