Bitcoin Lightning Network Adoption: Slow But Promising Progress

KANALCOIN NEWS –

Lightning Network emerged as a significant innovation in the crypto market. Claims to have the advantage of being able to complete 1 million TPS in 1 second, in contrast to its predecessor which could only complete 5 transactions in 1 second. In 2023, the Lightning Network user base will increase to 328 million users. In fact, these figures show that only a small percentage of crypto exchanges utilize this technology. Lightning Network’s adoption journey for crypto transactions has many challenges, but it has the potential for wider acceptance in the crypto industry.

Bitcoin Lightning Network Adoption

Several large exchanges that have already adopted Bitcoin Lightning Network technology such as Binance and OKEx appear to be contributing to its widespread accessibility and awareness. As the latest report shared by leading Bitcoin infrastructure company, Kaminari. Furthermore, the report also shows that the Lightning Network user base could grow significantly by 2024.

Kaminari added to his analysis that Binance alone has 150 million users by August 2023. OKEx has 50 million, and Bitstamp has 5 million users. Even though large exchanges such as Binance and OKEx have adopted it, there are still 14 of the 224 active centralized crypto exchanges that have integrated the Lightning Network into their systems. This shows that only 6% of crypto exchanges use the Lightning Network for Bitcoin transactions.

Another thing that makes Bitcoin users still reluctant to use the Bitcoin Lightning Network is the slow adoption rate. Of course this raises many questions about the scalability and ease of use of the network, especially for individual users. Despite the benefits of reducing fees and facilitating Bitcoin transactions, the Lightning Network also still seems exclusive because of the more than 350 wallets analyzed, only 30 have integrated Lightning. Among them, 15 are for storage purposes and 14 are for non-storage purposes. Notably, among the 10 most popular wallets by number of users, only Exodus and BitPay have adopted Lightning.

In terms of security, one journal from the University of Illinois in 2022 stated that the Bitcoin Lightning Network network is still vulnerable to criminal acts. This can result in theft of BTC points.

High Potential in BTC Transactions

The Bitcoin blockchain itself continues to show strong growth with a record number of transactions appearing in 2023. The increasing number of nodes and capacity of the Lightning Network shows the potential for increased adoption and integration in the cryptocurrency.

Additionally, with the addition of stablecoins to the Bitcoin blockchain, preparations for a revolution in the stablecoin market are underway. If billions of dollars worth of USD transactions move from the Tron and Ethereum networks to the Lightning Network, the stablecoin sector could certainly change quickly.

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