The Lightning Network (LN) continues to expand even when Bitcoin and cryptocurrencies fall. During the last few days, the network capacity has grown by 294% reaching 443 BTC. The number of nodes also continues to increase as time passes.
Lightning Network Expansion
The Lightning Network shows that it’s growing in a healthy way even when the market operates negatively. This is very important for Bitcoin (BTC), showing that developers continue to work in order to improve Bitcoin’s network.
LN is the ultimate scaling solution for Bitcoin. As an off-chain network, the LN aims at solving the scalability issues that Bitcoin could face in the future and that already experienced in the past. Once it is implemented, users will be able to transact funds in a fast and simple way. Additionally, it will help Bitcoin’s main network to avoid being congested.
At the time of writing this article, the capacity of the network is 443.81 BTC ($1.9 million USD). This represents a 294% increase compared to 30 days ago. The number of nodes has also been growing. There are 4,157 nodes in the network, growing 8.4% compared to the last month.
The Twitter user LongHash released a tweet in which they show how the LN grew over time. LongHash wrote about it:
“Bitcoin’s lightning network now holds $2 million worth of BTC in payment channels. In 10 days, the total network capacity has grown by 300% in BTC channel value.”
Bitcoin's lightning network now holds $2 million worth of BTC in payment channels.
In 10 days, the total network capacity has grown by 300% in BTC channel value. pic.twitter.com/HjERaH0EDh
— LongHash (@longhashdata) November 21, 2018
The growth in the LN started to be faster close to November 15, the date of Bitcoin Cash’s (BCH) network upgrade.
Although these are very optimistic numbers for the future and for the bear market in which cryptocurrencies currently are, the network remains as an experiment. It has its own problems and things that must be solved before it is able to go live. For example, if there are big nodes that disappear from the network, the smaller nodes will have to find new paths to perform transfers.
These issues and many others are currently being addressed by Bitcoin developers and Lightning Labs.
Bitcoin Cash, instead, is proposing a different way to scale Bitcoin. It aims at increasing the block size and allow transactions to be performed on-chain.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.