The Bitcoin Lightning Network has more than 10,000 nodes

The Lightning Network continued to grow significantly in the past year. The number of Lightning nodes doubled to 10,439 and the total liquidity in the network is now almost 1200 BTC, about $70 million dollars at the current price.

The Lightning Network has continued to grow at a rapid pace over the past year, according to information on BitcoinVisuals.com. Last year the network had just over 5,000 nodes, but that has now almost doubled to 10,439 nodes. The number of payment channels grew from almost 29,000 to more than 38,000.

Source: BitcoinVisuals.com

Total liquidity in the payment channels also increased sharply. That increased tenfold from about $7 million dollars in BTC a year ago to a whopping $70 million dollars in BTC today. This is mainly because the price has risen significantly since then. Expressed in bitcoins, the total liquidity in the payment channels increased by about 30%, from 920 BTC to almost 1200 BTC.

Lightning Network

The Lightning Network is a relatively new technology that has only been available since 2018. It is a network protocol and so-called second-layer scalability solution, which makes bitcoin payments lightning fast and cheap. You can do a bitcoin transaction for just a few satoshis that is almost instant, without compromising decentralization. The technology is still developing.

The Lightning Network works on the basis of payment channels that users open to each other, with which mutual Bitcoin transactions can be done ‘off-chain’ . Only the final settlement is registered on the blockchain. The usual transaction costs on the blockchain and the block time of 10 minutes are therefore hardly applicable anymore. It also provides privacy benefits.

The Lightning Network is one of the ways the Bitcoin network can scale for mass use without sacrificing decentralization. Many people expect that more and more bitcoin transactions will take place via these types of ‘off-chain’ solutions in the future.

Progress

Especially in the past year, the advancement of the Lightning Network gained momentum. More and more bitcoin wallets support it and thanks to user-friendly software such as Umbrel, it has never been easier to set up a Bitcoin Lighting Node. This can probably explain part of the growth in the number of nodes.

Technology is also evolving. New opportunities emerged in the past year thanks to Lightning Pool, LSAT and Wumbo channels and exciting use cases such as Podcasting 2.0. Work is also underway on the integration of the Lightning Network in computer games.

Also read our previous articles about the Lightning Network. Did you know that there is also a Dutch Lightning Network community on Telegram?

Footage: nathan_lounds, CC PDM 1.0

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