This week, everyone has been talking about the Layer-2 Lightning Network of Bitcoin solution. Its capacity has reached 5,000 BTC, which is $100 million. It took less than four months for the capacity to reach 4,000 BTC.
The Lightning Network is Bitcoin’s main way to make transactions faster and cheaper as the network grows.
Lightning Network
Lighting Network is a solution for scaling that makes Bitcoin transactions faster and cheaper. With a bigger Lightning Network, more Bitcoin can be moved at a faster rate and in larger amounts. It lets people send Bitcoin or satoshis, the smallest unit of Bitcoin, to send or receive money faster and with lower fees. When the network has more space, it has more money flowing through it. Because of this, users can make transactions faster and possibly do more of them.
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Lightning Labs, the company that made Lightning Network, just put out a test version of new software that would let Bitcoin users make assets and work with them. The software, which is called Taro, would let the network host stablecoins. With Lightning Network integration, they could be moved across scaling solutions to make transactions that are quick and cheap.
BTC users are also becoming more interested in the Bitcoin Lightning network. MicroStrategy has a big stake in BTC and made headlines when it posted a job listing for a full-time lightning network engineer. It looks like the company wants to build an e-commerce and enterprise SaaS platform based on the Lightning network.
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Institutions Eye Lightning Network
On the other hand, Strike, a company that facilitates digital payments over the Lightning Network, has raised $80 million in a funding round headed by Ten31 and featuring contributions from Washington University in St. Louis and the University of Wyoming, among others. This investment demonstrates that other entities, such as businesses and institutions, are interested in having a similarly robust and creative fundraising experience.
Layer 2 solutions, such as the Lightning Network, are anticipated to play a larger role in the bitcoin network in the future.
