Last Year Lightning Network’s Capacity Is Up Over 700% Since September 2018
Bitcoin’s one of the biggest criticisms had been its scalability problem and the Lightning Network was designed to solve it.
The Lightning Network is a layer two protocol for Bitcoin, specifically designed for cheap, fast and private payments. As an overlay network consisting of payment channels, Lightning payments are not recorded on Bitcoin’s blockchain, only channel-funding transactions and channel-closing transactions are.
The Lightning Network was first proposed in 2015, in the Lightning Network white paper, authored by Joseph Poon and Thaddeus Dryja. Since then, several teams have been working on different Lightning implementations, including Blockstream’s c-lightning, Lightning Labs’ lnd and Acinq’s Eclair.
A full-capacity Bitcoin network results in fees far too high to make micropayments worthwhile. Lightning is a way of serving transactions without having to wait until they’re confirmed in a block, thus sidestepping the competition for fees.
Micropayments have been a hot topic in the Bitcoin community for years now. The reason for Bitcoin Cash’s (BHC) hardfork in 2017 centered around this very issue. A sizeable chunk of developers disagreed with plans to have Bitcoin scale using layer-2 solutions like Lightning, instead of scaling directly on the mainchain.
Messari compares these metrics of BCH and Lightning Network.
The general idea is to give the network enough time to patch security flaws while simultaneously keeping bad actors in the dark, which stops the exploitation of bugs.
Rusty Russell, an Australian software programmer and a bitcoin lightning coder, saying that security issues have been discovered in various lightning projects which could cause loss of funds.