The Lightning Network (LN) is a second layer scaling solution that was initiated along with the SegWit implementation in late 2017. While it has failed to gain mainstream use, the lighting network (LN) is currently the only plausible scaling solution that will be able to reduce the transaction fee and enable instantaneous transactions.
The top two US-based Exchanges, BitMEX and Bitstamp, have established Lightning Network (LN) nodes. Bitstamp Exchange noted in their press release,
Transactions are made off-chain with confidence of on-chain enforceability. This is similar to how we enter a contract with another person, but do not have to go to court to sign it.
Nejc Kodric, the Co-Founder and CEO of Bitstamp tweeted about the LN node,
— Nejc Kodrič (@nejc_kodric) July 8, 2019
The scaling solution is the more widely accepted solution on Bitcoin. It’s been almost two years since the Lightning Network plan was initiated and not much progress has happened on it. This is primarily due to centralization doubts around the semi-permissioned scaling solution. Nic Carter, crypto-influencer and analyst, has also raised doubts around the probability of success of the lightning Network.
Reportedly, the number of Bitcoin in the scaling channels are currently even less 1000 BTC. Therefore, the adoption rate is prolonged at this point.
Nevertheless, Bitcoin has established itself as a ‘store of value.’ Hence, the price is rising independently of the scaling concerns. However, supporters are still looking forward to the implementation of the scaling solution.
The Lightning Labs have also released the Lightning Network (LN) mobile and desktop apps. Moreover, many other popular Bitcoin wallets like Electrum have also announced the addition of the LN support.
The LN is designed to act a global payment system where the channels will form a world-web of payments. Moreover, if the Exchanges start Lightning Network (LN) payments on their wallets, it will sharply increase the viability of the Lightning Network.
Do you think Lightning Network will go mainstream in 2019? Please share our views with us.
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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