TD₿: The Bitcoin Lightning Network: Bitcoin's Payment Solution by NYDIG
TL;DR A good, concise overview of Bitcoin's second layer payments solution, the Lightning Network
Hey Bitcoiners,
A bright spot of this bear market has been the explosive growth of Bitcoin’s second layer payment protocol, the Lightning Network. ⚡
The Lightning Network now has 3,980 bitcoin locked in it, or ~120 million dollars worth of bitcoin, up 170% from a year ago.
It is encouraging to see the growth of scaling solutions like the Lightning Network that will add more functionality to Bitcoin and allow for cheap, fast payments.
Today, Bitcoin is broadly viewed as a store of value given where we are in its adoption cycle, but in the future, more and more Bitcoiners will begin using it as a medium of exchange to purchase goods and services.
Protocols like the Lightning Network will be key in enabling this and allowing Bitcoin to scale to billions of users.
Although its growth has been impressive over the last couple of years, it’s still early for the Lightning Network, and people are still wrapping their heads around what it is exactly.
I came across this report from NYDIG that I think is one of the better overviews of the Lightning Network and will help beginners understand what this protocol is and what it enables. (03/01/2022)
In the future, I believe the Lightning Network will be just one scaling layer amongst many that are built on top of the Bitcoin protocol.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Bitcoin currently cannot handle small, instant payments. At one point, the Internet could not handle streaming video, but it now accounts for the majority of Internet traffic. Bitcoin's Lightning Network enables streaming money (those small, instant payments).” - Kyle Torpey, Writer and Bitcoiner
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