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Author: Admin | 2025-04-28
This constraint is mitigated by the Lightning Network, a layer-2 solution built on top of Bitcoin. It can, in theory, reach millions of transactions per second, limited only by users' network connections and the capacity of Lightning nodes. These nodes establish bilateral off-chain channels, bypassing Bitcoin's on-chain limitations, and only record transactions on the Bitcoin blockchain when funds are transferred to or from the Lightning Network.This solution is also much cheaper than Bitcoin’s mainchain, with average fees under one cent compared to Bitcoin’s current average fee of $1.80. As a result, the Lightning Network is also ideal for micropayments, establishing itself as the main method of payment within the Bitcoin ecosystem.Bitcoin Adoption As A Means Of PaymentWhile on-chain BTC can be used for payments, Lightning Network is a more reliable measure of adoption. Not only is it better suited for payments, but it also helps filter out the speculative transaction spikes driven by Bitcoin-based projects like Ordinals or Runes.According to TheBlock, the Lightning Network capacity has doubled from $227 million in January 2024 to $500 million by the year’s end.The capacity of Lightning channels is not a direct indication of how much BTC circulates in the network - the exact number cannot be calculated. Yet, it provides a good estimate of the potential circulation, assuming that Lightning nodes only lock funds in the network if they generate a reasonable return from payment fees.Lightning Network's Capacity by TheBlock, dated 01/13/25Marie Poteriaieva, TheBlock The number of merchants accepting BTC is on the
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