It’s Time to Let the Lightning Network Shine

Ever since Lightning Labs officially launched the Lightning Network in 2018, the off-chain protocol has been in BETA testing. Over that time, the network has seen impressive growth in both users and functionalities. Now, it’s time to let the Lightning Network shine.

This second-layer protocol has matured from a testing ground into a legitimate and core aspect of Bitcoin’s expansion. As such, there are many who believe that the Lightning Network is finally ready to shine. Here’s why they believe it’s time to take the training wheels off.

You Can See the Maturity

It’s a completely different Lightning Network than the original one in that it has seen significant security and technical upgrades. Today, the Lightning Network ecosystem includes thousands of node operators, exchanges, payment processors, and a host of other blockchain service providers.

It still serves its role to reduce blockchain congestion and prices. However, it now has a bunch of other capabilities that have expanded its use case scenarios. For example, users can issue digital assets and create smart contracts on Bitcoin utilizing the off-chain solution.

Lightning Network Strikes Hard

Notably, the Lightning Network expanded to new heights with each new technical upgrade. Recently, the network has seen some channel consolidation, which analysts depict as a sign of maturity. While BTC capacity shrank, the total value of the Lightning Network rose by +$100M over the last year, according to Block.co reports.

In order to achieve this growth, the Lightning network had to overcome several roadblocks to adoption. Primarily, the network needed to become less technical. As a second-layer protocol, the Lightning Network relies on privately funded channels to deliver its savings.

Lightning Network Shine

Opening and funding these channels have proven to be difficult for new users in the past. Today, there are several platforms that streamline this process. Additionally, there are now more channel hosts who make it easier to find reliable and funded channels.

Another major upgrade enabled the network to break larger payments into multiple channels automatically. This maneuver helped to improve the consistency of the network by ensuring that users weren’t left scrounging for suitable channels or waiting on multipart payments to complete.

Regulatory Concerns

Regulatory concerns were another hurdle that had to be overcome. Thankfully, major economies like the US have pivoted toward crypto service providers rather than away. They have introduced new licensing, and nations like the US are now holding Bitcoin reserves. Each of these steps helped to reduce the regulatory uncertainties of cryptocurrencies.

Reliability Issues Be Gone

There are still some concerns surrounding the structure of the Lightning Network and its reliance on towers to determine if a user is attempting to act maliciously. Additionally, routing failures and channel imbalances caused users to experience finicky payments for years.

Exchange and Wallet Adoption

At the core of the Lightning Network’s maturity is its newfound support from large CEXs (centralized exchanges). Platforms like Coinbase and Binance integrated the network as part of their strategy to provide low-cost and fast Bitcoin deposits and withdrawals. This maneuver cemented the off-chain protocol as a core component of Bitcoin’s legacy while also helping to solve many liquidity issues.

Real World Payment Processors

The Lightning Network can be credited with keeping Bitcoin viable as a day-to-day currency. Before its introduction, Bitcoin’s adoption had stalled as a means of currency. Instead, it was seen as a store of value, but delays and fees negated its use for daily commerce. The Lightning Network changed everything.

Its integration into crypto payment processors as of late has helped to drive adoption across the industry. The second-layer protocol is ideal for the task. Today, major payment processors support LN-powered transactions as a way to reduce your payment costs.

Let the Lightning Network Strike

Now that the Lightning Network has seen so many improvements and growing support, it’s ready to go mainstream. It’s already found a home across the industry where it serves its role as a viable way to reduce congestion, costs, and transaction times for millions of Bitcoiners. From here, the logical next step is further adoption.

Learn about other Important Lightning Network Developments here.