Over the year, the Lightning Network (LN) has seen massive growth and continued adoption by the Bitcoin community. Yesterday, the Lightning Network saw capacity spike to over 1500 BTC.
This increase shows that users have confidence in the ability to securely conduct out-of-chain transactions through the LN. This year alone, the Lightning Network has seen a massive 42% growth in the number of BTC available. In addition, there are now over 12,000 nodes that take care of 45,000 payment channels.
Since its inception, Bitcoin has had problems with blockchain congestion and the associated higher fees with an influx of transactions. The LN aims to reduce this congestion while lowering transaction fees.
As the second tier payment protocol, the Lightning Network is important for users to microtransactions. Without the ability to carry out these transactions, BTC is not exactly attractive as a payment method for the common man due to higher fees and slower transaction times.
Giving users the opportunity to make these smaller transactions is important for the acceptance of cryptocurrencies for everyday payments. The scalability that the Lightning Network brings to the blockchain is crucial to the fact that this technology is no longer used as a traditional investment, but as a kind of fiat currency.
In the past few weeks since El Salvador announced Bitcoin as legal tender, Bitrefill announced that it has processed over 10,000 daily transactions on multiple occasions. This high number of transactions on the LN saved almost 2 whole blocks on the blockchain. This proves that the Lightning Network is applicable for everyday transactions and that it helps to scale Bitcoin.
Twitter CEO Jack Dorsey answered a few questions last Thursday and indicated that it is only a matter of time before the LN is integrated into Twitter. With the advancement of blockchain technology, the Lightning Network will be an important integration for everyday app users who carry out transactions with Bitcoin. While there hasn't been any integration yet, Jack Dorsey's answer to the question is illuminating.
It is very likely that apps will soon be equipped with blockchain technology and make transactions through the Lightning Network ever easier, faster and more secure.