Bitrefill has announced the first-ever public Lightning Network Channel to carry 1 BTC ($8,700). The channel was opened in collaboration with Bitcoin technology company Acinq and their eclair implementation. The new channel breaks the record of the 0.16777216 BTC channel limit and transactions are already running on the channel.
The Lightning Network is a layer 2 protocol for Bitcoin transactions that are meant to reduce the traffic of on-chain transactions and bring scalability to the Bitcoin network. The network has grown significantly, particularly after the “Lightning Torch” exercise earlier this year. It was however reported that the network capacity reduced 4% in just one month. The news on Bitrefill is a relief after the capacity decline development.
Bitrefill customers to enjoy higher limits
Discovering that it is possible to exceed the stated limit, Bitrefill intends to explore it to give its customers better shopping experience by increasing their limits on channels. This is expected to bring more liquidity to other aspects of the network as well as their Thor products. Speaking on the partnership with Acinq, Bitrefill said:
“It was awesome working with ACINQ on this and we really appreciate all of their work to make this possible with us! We are strong believers that the Lightning Network is a big part of Bitcoin’s future and are happy to have people that are willing to be #reckless with us!”
If the capacity continues to increase, the dream of BTC becoming more scalable may just become a reality in the near future.
A cryptocurrency enthusiast, author, and investor with high motivation in cryptocurrency/blockchain research and writing. He loves birdwatching and traveling. Follow him on Twitter at @Ponvangbu