Lightning Empowers Bitcoin In El Salvador And Beyond

The bitcoin capacity of the Lightning Network, Bitcoin’s layer-2 scaling solution, keeps hitting new all-time highs every week. The network now houses over 2,400 BTC in more than 73,000 channels. Since bitcoin officially became a legal tender in El Salvador on September 7, Lightning saw almost 2,000 new channels opened and 100 additional bitcoin stored in them.

A one-year window of the state of the Lightning Network by Bitmex Research.

As the network advances in functionality and usability and more people get enlightened on the positive upsides inherent to adopting the technology, it becomes more significant in the Bitcoin ecosystem. As a result, it ends up housing more BTC and posing itself as one of the definitive answers to the base layer’s scaling issue.

Bitcoin and Lightning together generate a positive reinforcement loop. Bitcoin education will naturally lead people to Lightning, which in turn increases Bitcoin usage frequency, given the layer-2’s focus on small payments. The easier it is to perform cheap and quick payments with bitcoin through Lightning, the more people will use Bitcoin, propelling it toward becoming an established medium of exchange.

Be the first to comment

Leave a Reply

Your email address will not be published.