btc lightning network

Remember the lightning network? There was a lot of hype surrounding it initially, though upon release it was simply too buggy to operate. If you’re not a fan of the Lightning network and have only heard small bits and pieces about it, fear not. You may be surprised to know that even despite the negative reception the lightning network received upon release, the network is still alive and is even considered a success by some. 

What is the Lightning Network?

The lightning network is a ‘solution’ to Bitcoin’s scaling problems. The Lightning Network is specially designed for micropayments as they would work considerably smoother on the Lightning network as opposed to the original Bitcoin network. The main idea of the Lightning Network was to be able to make off-chain payments that would not slow up the Bitcoin network as much as normal payments currently do. Also, it may be important to note that by the end of 2017, the Bitcoin network was extremely congested and highly volatile. As a result, people wouldn’t always receive the same amount of money they were sent.

Bitcoin’s SegWit means the many well-financed companies researching Lightning solutions can start to test on the main network – Fran Strajnar, co-founder and CEO of Brave New Coin

Because of this, the Lightning Network is designed to be a solution to save us all. So what happened? Bugs. And not the type of bugs that can be exterminated with ease. In fact, the Lightning Network was so buggy on release that many people actually lost money by using it. However, nobody lost massive amounts of money, as people use the Lightning Network for micropayments. But due to all the bugs it faced, people looked for different alternatives to save the risk.

Record Capacity

Despite the recent declines for Bitcoin and other cryptocurrencies, the bitcoin Lightning Network hit a record capacity of $2 Million. If you’re familiar with Blockstream CEO Adam Back’s recent prediction of a $500,000 Bitcoin, this may not be a surprise. But being one of the blockchain startup’s main technological efforts, the Lightning network saw a steep rise to over $2 Million in capacity even while the price of bitcoin rapidly decreased.

The thing is, Adam Back is not an economist, he is a cryptographer. His firm thrives when Bitcoin and other cryptocurrencies do well. Be that as it may, Tom Lee is a graduate from Wharton School and a financial analyst with over 25 years of experience in financial research. His prediction, with just a few weeks left of 2018, is a $15,000 bitcoin before the year ends.

Is the Bitcoin Lightning Network ready for Mainstream Use?

Hype surrounded the Lightning network as it presented itself as a solution to scale the technological issues Bitcoin faces. Even without having a solid foundation, the blockchain network is in a beta and development phase. Because of this, the Lightning network is technically not ready for mainstream use of yet. It’s simply too risky for users to invest large amounts of money into the lightning app or any app that has integrated this new blockchain protocol.

Despite this, the Lightning Network has shown many signs of success. Plus, with added optimizations and upgrades, the network is currently running far smoother than it did post-launch. The Lightning Network’s recent bubble could partially be the result of the recent hash war. This is the same hash war that caused the price of Bitcoin Cash and many other coins to plummet. Many users have been losing faith in this Bitcoin spin-off, which is a surprise. Many previous Bitcoin Cash users preferred the coin as it was a faster and more usable version of Bitcoin.

Are these two cryptocurrencies (Bitcoin SV and Bitcoin ABC) managed by idiots? Some may think that the recent in-house fighting between the differing miner factions — one being Bitcoin SV miners, the other being Bitcoin Cash miners — is all the proof we need. Could this be driving people toward altcoin trading? Let us know your thoughts in the comments below!

Even with all of these changes we iCE3X are here to give the best information and trading fees. Join us now, register and start trading!

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.