BitMEX Research Reports Dominance of Public Channels in Bitcoin Lightning Network (LN)

By Nivesh Rustgi
Published January 28, 2020 Updated January 28, 2020
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BitMEX Research Reports Dominance of Public Channels in Bitcoin Lightning Network (LN)

By Nivesh Rustgi
Published January 28, 2020 Updated January 28, 2020

The interest in Bitcoin [BTC] Lightning Network (LN) during early 2019 seemed to be subsiding due to lack of growth and adoption.

Nevertheless, the interest has been spurred again as leading exchanges like Bitfinex and Square Crypto led by Twitter CEO Jack Dorsey are looking to increase adoption.

Moreover, the total number of Bitcoins [BTC] in the lightning channel is closing in on 1000 BTC again. According to a recent estimate by BitMEX research, this only represents part of the total amount transacted via Lightning Network.

The reports by BitMEX Research with combined efforts from leading data analytics firm, Coinmetrics also confirm the growth of the protocol in the second half of 2019.

btc lightning network
Bitcoin Lightning Network (Coinmetrics and BitMEX Research – Source)

The report suggests that about 28% of the channels are private, hence extrapolating the data, the total number of Bitcoin in LN is more than 1050 BTC. Moreover, the total number of public and private channels in Bitcoin is somewhere between 50,000-55,0000. The reports says,

Using the http://1ml.com database of public channels, we checked it against our dataset of channel closures. Based on this, we estimate that around 28% of channels are private

bitcoin lightning
BitMEX Research Comparison of Public and Private Channels in LN

According to their findings, the number of public channels closures have decreased to new lows, as the number openings continue to rise. The blue bars represent the number of closures each month, while the red line represents the number of public channels.

bitcoin ln
Bitcoin Lightning (LN) Public Network Growth

Bitcoin LN’s inclusion is making micro-payments across web applications and social media websites, would open a new world of payment structure. Bitcoin adoption can expect to undergo similar hysteria of the 2013-2014 period which subsided after the rising fees and scalability issues.

Have you used the Lightning Network yet? Please share your views with us. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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