• THE LIGHTNING NETWORK NOW HOUSES MORE THAN 3,000 BITCOINS

  • According to TXStats.com, the Lightning Network, Bitcoin’s layer 2 scaling solution for fast and cheap bitcoin payments, now has over 3,000 BTC in its more than 77,000 channels. Since June, when it passed the 1,500 BTC mark, the network’s bitcoin capacity has more than doubled.

    Lightning has seen a significant increase in activity in terms of channel number and bitcoin capacity, owing to increased awareness following El Salvador’s adoption of the Bitcoin legal tender law. Since the beginning of the year, the amount of BTC held in Lightning channels has nearly tripled.

    Lightning is a decentralized scaling solution built on top of the Bitcoin blockchain — hence the “layer 2” or “second-layer” naming — that allows users to conduct small and frequent transactions at a low cost. The Lightning Network’s strength lies in its ability to follow the same rules as Bitcoin transactions while making payments cheap and quick.

    A Lightning channel is created in the network with a multisignature address in which the two parties each hold a key, and moving funds requires both keys. This scheme allows the channel’s two users to transact while preventing one user from stealing funds from the other.

    Although improvements are needed, Lightning is a powerful technology that allows Bitcoin to scale, debunks common but false arguments from the mainstream media. More importantly, Lightning makes it economically feasible for human rights activists and citizens of developing countries to transact value on a daily basis in bitcoin, the best form of money humanity has ever known.

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