LTC Lightning Network Crosses 1,000 Litecoin Payment Channels as Price Continues Upward
Have you heard of the Litecoin Lightning Network? Many people do know the Bitcoin Lightning Network, the famous brother of Litecoin’s one, but this one is actually a fairly newer and smaller adaption of the LN.
Despite how much we all talk about how the LN can be used for Bitcoin, you can use for Litecoin a well. Any crypto which has activated the Segregated Witness (SegWit) in the past is compatible with the LN and can have its support enabled.
Today the Litecoin LN has reached a very important milestone: it has 1,000 channels right now which are fully operational. This is the first step to making this off-chain layer 2 solution more well-known to the public and, therefore, popular and accepted.
This will probably make even more channels be opened in the future, as all that it takes in order for a business to start properly is that first spark of hope.
According to NullTX, which has also reported on this story, the Litecoin LN increase in the number of payment channels may be directly linked to an increase in the price of Litecoin, which is having a good run lately and has passed the $50 USD mark.
The crypto media outlet has affirmed that there is some correlation that can be seen between one aspect and the other, however, it has also affirmed that it is hard to pinpoint exactly is the correlation is right or now. According to the site, this only speculation.
A New Dawn For the Litecoin Lightning Network
At the moment, there are 1,012 channels which are currently being operated by 161 participants, meaning that this is a very small-scale effort for the moment, something typical of times in which companies is starting out.
It is important to put this increase in perspective. At the moment, the whole capacity of the Litecoin LN is only around $7,000 USD. A number which is surely very low when compared to the Bitcoin LN, that’s a fact, but you should notice that some weeks ago, the whole capacity of the network was actually under $4,000 USD.
This means that in less than a whole month, the capacity of the network has almost doubled, which is a great sign because these things can grow exponentially if the community is strong.
Sure, the Litecoin LN will hardly ever reach the same size of the Bitcoin LN the same way that LTC will never be as valuable as BTC, but there is hope for a new dawn here.
In comparison, the Bitcoin Lightning Network has over 7,000 nodes and 32,000 payment channels. Its network capacity is $3 million USD, which puts the mark of $7,000 USD that the Litecoin LN has to shame in comparison.
About the Lightning Network
It can be said that some of the reason why the Litecoin LN is getting so popular now has to do with the popularity of the Bitcoin LN as well. The Lightning Network was launched last year and, unfortunately, it was very buggy at release, however, it seems most of the issues have been solved so far.
The initial issues were mostly focused on how funds were lost forever during transactions which did not work well. This used to happen because the transactions are made off-chain, that it outside of the main Bitcoin or Litecoin network.
With the Bitcoin Lightning Torch initiative, however, a lot of hype was started around the LN and this has made the initiative considerably more popular.