Bitcoin [BTC] has been witnessing a price correction throughout the broader cryptocurrency market. However, the asset’s current price drawdown failed to impact the network’s Lightning protocol. In fact, the layer 2 solution has struck a new record in terms of capacity, hitting 3225 BTC. As observed by data analytic platform, Arcane research, the Public Lightning network capacity witnessed a massive acceleration following El Salvador’s Bitcoin adoption as a legal tender last September.
Lightning Network [L/N] is a second-layer scalability solution built on top of a bitcoin blockchain. It consists of multiple payment channels or getaways between users to carry out day-to-day asset transfers with fewer transaction fees. Working on a parallel chain reduces the burden on the parent chain and solves the scalability issue.
In addition to that, the LN consists of two types of channels: Public and Private. The Private channels are not visible to the network and are only recognized by the two involved nodes. There is also a possibility that entire nodes might remain hidden from the network. In fact, channels based on mobile wallets are private. This ensures the user’s privacy and effective routing of transactions.
Bitcoin’s LN latest real world use cases
The stability solution has seen a lot of traction owing to the announcements of several notable projects. Yesterday, Synonym Software Ltd., a subsidiary of Tether Holdings Limited, announced to build a product that will facilitate users to buy connections on the Lightning Network. Thus eliminating the users to go through the complex procedure of creating channels. Apart from that, the firm is also currently engaged in creating a mobile wallet compatible with Bitcoin and LN.
Aiming to promote Bitcoin adoption, CEO of Synonym John Carvalho said,
“Hyperbitcoinization won’t magically happen on its own… we need a strategy and ecosystem to replace the legacy economy.”
Additionally, Tron Weekly previously reported the LN’s official integration with a Switzerland-based crypto firm that further boosted its presence in the European market. Recently, the Bitcoin network officially activated the Taproot upgrade that comes with features like faster transaction, enhanced privacy, and smart contract functionality.