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Capacity of Lightning Network surpasses 3,000 Bitcoin

The capacity of the Bitcoin Lightning Network surpassed 3,000 Bitcoin on Tuesday.

The Lightning Network is the prominent Layer-2 solution for Bitcoin, built with the purpose of making payments of the cryptocurrency cheaper and faster.

“Lightning network is an extended phenotype of bitcoin. Similar to humans domesticating horses to move faster.”

In dollar terms the Lightning Network is now valued at over $150m.

Since the beginning of January 2021, the Lightning Network has been growing at a rapid rate.

The exponential growth has come about as a result of a number of factors. Most recently, Twitter announced that it was rolling out its tip function via the Lightning Network.

Then there is El Salvador, where the country’s official Bitcoin wallet, Chivo, is supported by the Lightning Network for transfers. Any announcements by nation states or major corporations are likely to bring about a continuation of the rapid trend seen since the beginning of the year.

Perhaps Brazil?

A Lightning channel is created with a multisignature address in the network in which the two parties each hold a key. Therefore both keys are required for moving funds.

This allows the two users in the channel to transact while preventing one user from stealing funds from the other.

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