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Lightning network crosses major milestone- completes 1,000 mainnet Payment channels

Feb 04, 2018 Posted /  27823 Views

Lightning network crosses major milestone- completes 1,000 mainnet Payment channels

Many investors have been in dilemma since the start of 2018 as for whether to hold or sell their bitcoin and cryptocurrencies as the market has faced a steep decline leading to huge losses. However, bitcoin does not seem to be affected by this and its progression is in full flow despite all the negative developments surfacing around the leading cryptocurrency.

One of the most awaited technologies in the space of Bitcoin is the Lightning network (LN) which is slowly and steadily progressing one milestone to other. The technology reached one of the major milestones earlier this week. The lightning network this week reached 1,000 mainnet Payment channels for the first time in its history. This can be labelled as one of the most celebrated developments which can advance the adoption of this burgeoning technology to new heights. according to many developers in the field of the blockchain, this technology can actually be a long-term solution to Bitcoin's network congestion.

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At present, Bitcoin is facing a downfall in usage as many people are reaching out for new altcoins which have better technology and provides greater convenience. Reportedly, Bitcoin's network congestion has especially reduced the utility of the cryptocurrency for low-value transactions, which lead many companies including the payment processor for bitcoin Stripe to abandon its support for the payments.

How Lightning Network solves the issue

Lightning Network is a new protocol, which is said to bring a shift in the bitcoin's operating blockchain and ease network congestion. LN will move transactions out from the main blockchain and build a second layer protocol of its own. To ease off clogging the network will use payment channels and the users will be able to make an almost immediate transaction at almost nil cost.

The proponents of bitcoin for sure argue that all those who had thought off shifting away from the technology because of the recent issues will now propel back for the currency because now it will process payments of all sorts and sizes instantly.

Nonetheless, Lightning Network is still in its alpha testing phase and the passionate users have started setting up LN nodes on the Bitcoin mainnet, while also opening up payment channels with one another. As the media reports, there are almost 419 nodes that are already running with the LN software on the mainnet. On January 17, last year when media reported about the network there were some 30 nodes that were running at the time.  

According to the reports in the media, another bitcoin fork- Bitcoin cash which is also the fourth largest cryptocurrency according to the market capitalization of virtual currencies, currently have 1,171 nodes running. These are less than three times more that of the alpha-stage LN.

More accolades

Well if reaching 1,000 mainnet payment channels was one milestone that Lightning network reached this week, there were several others too which the network passed recently. Some brave users risked mainnet BTC to facilitate in the speeding of the development of this encouraging technology.

In January this year, TorGuard started admitting mainnet LN payments for its VPN service, and the company later identified the Lightning Network’s “pizza transaction” when it approved a brave user to pay for a physical item with the help of an LN payment.

Also in this week, Austria-based startup Coinfinity developed what is considered to be the primary LN transaction on a Bitcoin ATM.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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