A new report issued by Kraken Intelligence has analyzed the growth of the Lighting Network. The report reveals that during the past year, the network capacity has expanded 150%.
As bitcoin’s global adoption grows, its use as a medium of exchange also increases.
In Kraken Intelligence’s latest report, The Lightning Network: Bitcoin Evolution to Medium of Exchange, the team analyzes the current state of the Lightning Network and its current adoption to date.
The Lightning Network protocol is what makes it possible to transact bitcoin in a fast and cost-effective manner, and this is without having to make concessions to custodial risk or centralization. Precisely the same decisions that were planned in its design to make bitcoin the most secure and decentralized currency in the world are at the same time limiting bitcoin transactions to approximately seven per second.
This is where the Lightning Network increases the limit to about 25 million transactions while offering instant settlement of transactions, without the need to compromise the security or decentralization of the Bitcoin protocol.
Lightning is a more efficient way to carry out small transactions.
Following its launch in 2018, the Lightning Network is showing a remarkable and steady growth in adoption, which consequently leads to the establishment of bitcoin as an easy, fast, and yet inexpensive medium of exchange.
This medium of exchange offered by the network has turned BTC into a practical currency that solves existing problems, mainly for all unbanked people in emerging markets such as El Salvador. The Republic of El Salvador recognized BTC as legal tender, becoming the first country to do so. Thus legitimizing the use of bitcoin for any transaction, from buying a drink to even paying taxes.
This steady trend of adoption has offered an effective alternative for people with economic difficulties in developing countries. Bitcoin has become an effective alternative to traditional payment systems.