The Bitcoin Lightning Network has achieved another milestone. Total public capacity crossed over 5,000 BTC for the first time in history, continuing with the rising trend of 2022. This new milestone pushes far beyond the potential and promise of the Bitcoin Lightning Network. Just as always, there was a reason behind such a big push.
Intensify the development of Bitcoin
The continuous development of the Bitcoin network has been a large part of the reason why digital assets remain so valuable today. Being the largest decentralized network in the space, there are always developers looking for new ways to take advantage of the Bitcoin network’s offerings and push it into the mainstream.
Lightning Labs is a development company that continues to focus heavily on Bitcoin development and has been behind the all-time high capacity of the new Lightning Network. The developer has expanded the capacity of the River Financial Channel and Loop, allowing the network to be able to accommodate more BTC. It also comes after the introduction of the new Taro protocol, whose token went public anatomy last week as Lightning Labs continues to expand the capabilities of the Bitcoin network.
Lightning network reaches new milestone | Source: Arcane Research
The Bitcoin Lightning network is becoming increasingly popular among BTC users. MicroStrategy, which holds a large BTC investment position, made the news when it posted a job offer looking for a full-time Lightning Network Engineer. Apparently, the company is looking to build a Lightning Network-based SaaS platform for e-commerce and enterprise use cases.
The Taro Protocol, mentioned above, enables developers to issue, send and receive new tokens on the bitcoin blockchain. Take the Ethereum ERC token as an example. It will also expand the capabilities of the NFT on the bitcoin blockchain, as well as allow the creation of stablecoins based on the bitcoin blockchain.
BTC price settles above $20,000 | Source: BTCUSD on TradingView.com
The Lightning Network is increasingly featured in crypto payment services due to its speed. El Salvador has adopted the Lightning Network to facilitate BTC payments in the country and a digital payment provider Strike raised $80 million in September To expand the Lightning Network-based payment solutions for merchants.
Layer 2 solutions such as the Lightning Network are also expected to be more important to the Bitcoin network in the future. Cardano founder Charles Hoskison recently revealed that he expects the majority of BTC to likely exist outside the Bitcoin network in the next five years and to be encapsulated in these second layer solutions.
Featured image from Coindesk, charts from Arcane Research and TradingView.com
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