The recent times have seen a lively interest in the Lightning Network as a technology expected to transform the digital currency space, especially in lifting the slump that has affected Bitcoins of late. Lightning Network, or LN, as it is commonly referred to, is an off-chain solution that is likely to make fresh and unique functionalities available to users of Bitcoins. Despite still being in its Beta Testing phase, the LN solution is seeing more and more crypto-enthusiasts willing to adopt it to take advantage of the scalability it offers, often touted as the best solution for scalability in the Bitcoin or BTC space.
It appears that LN can also have a positive impact in the prices of Bitcoins and enhance its market value by fulfilling the promise of BTC being a “Peer-to-Peer electronic cash system”, as claimed in Satoshi’s white paper. In order to be so, BTC must efficiently handle large volumes of transactions while keeping time and costs low. The BTC blockchain is presently inadequately equipped to handle any more than just 7 transactions per second since it has a mere 1MB block size. Moreover, the present system has also been causing users to have to face soaring fees that reached a record high since the blockchain congestion that came about in the first half of 2017. The LN is expected to transform both these barriers and bring about a revolutionary rise in Bitcoin adoptions.
The LN will be able to handle thousands of transactions each second, raising the efficacy of the system manifold. BTC’s price depends upon the quantum of its demand and the publicity this cryptocurrency received in the last year had caused prices to peak, leading to a record high of $19,340 on 6th December 2017. However, the existing problems of the blockchain technology, delay and high fees, have threatened to steer BTC away from the sunny side.
The LN is expected to help the BTC re-establish its fledgeling leadership after it lost almost 20% of the market share it held, to new altcoins like BTC Cash, a hard fork of the actual BTC. While Bitcoin Cash and similar altcoins have seen a growing popularity, they are simply like Bitcoins but with a larger block size. With the advent of LN, Bitcoins are expected to take back space from its clones since it will then have a much larger block size.
Further, the LN is expected to propel BTC to a glory by adding functionality options for users to explore, like Smart Contracts. MIT has taken a leaf out of the book of the altcoin market, especially Ethereum, and focused on developing the Smart Contracts ability. With a substantially large following of developers, the LN is likely to see even greater success. The developers are working on adding functionalities despite it being in Beta Testing. LN, available on platforms like Lightning Spin or Satoshi’s Place, looks like it is all set to revive the BTCs. With just four million BTCs left to mine, added functionalities and rising adoption can definitely have an impressive impact on the space.