Lightning Network Whitepaper Co-Author: Exchanges Use of Bitcoin LN Would Spread Adoption
It is no secret that the Bitcoin Lightning Network has gained a lot of popularity in 2019. With the current capacity of $5 million USD, the network has grown a lot this year and cannot even be compared to what it was last year when it was originally launched.
This, however, is not enough for many people who want to see the LN reaching major adoption sooner rather than later. This brings up an important discussion of the network which has been fairly central recently: how to make the use of the Bitcoin LN more widespread.
Anton Kumaigorodsvkiy may have a hint. The Bitcoin Lightning Wallet dev has recently spoken about the technology and promised several upgrades that will make it much more efficient. This, he believes, would make it ready to be more widespread in adoption.
However, there are obvious other points that need to be considered as well. Creating a good solution is, unfortunately, not enough in order to fix all the adoption issues.
Now, the co-author of the white paper for the LN, Tadge Dryja, has affirmed that despite the LN being in its mainnet phase, it still held many characteristics that were very similar to a testnet.
The main problem, according to him, was that people were simply not using it for large transactions. Nobody bought goods using it and most of the people who were fond of the solution were very tech-savvy users.
According to Drija, one way in which the Lightning Network could get way more adoption would be if it was used between exchanges when they had to make transactions with each other. This could boost hugely the impact of technology and would be very important for the market.
He affirmed that it would be “really cool and safer” if Coinbase, Kraken, Gemini and others supported the LN and you could open channels and send payments very quickly using it and that it would benefit both the network, which would have more users, as well as the users themselves because they would have a better solution that they did not have before.
By using this new channel, the exchanges could revolutionize the crypto industry, he affirmed, so they have no reason not to do it.
However, they may do. Despite all the marketing behind it and the fact that the LN got really better in around a year, the LN is far from perfect. For instance, the funds still may be lost in transactions, so only small amounts can be sent without having any chance for problems, which is quite troublesome.
At the time of this report, the LN had a capacity of 1.957.980 BTC, around $5.5 million USD, and a total of over 8,200 nodes and 38,300 channels.