Bitcoin Lightning Network or LN is a second layer solution for cryptocurrency trading that is built on top of the main Bitcoin blockchain. The main aim of the LN is to increase the scalability of the Bitcoin blockchain. The developers at LN are continuously working on upgrades and updates to add new features and improve its functions.
The latest conquest of the LN is adding a new update to the network that allows the LN to process more transactions per second. The upgrade has arrived at a time when the cryptocurrency market is undergoing a bear cycle. Overall the capacity of LN is reportedly increased by 34.6% following the upgrade. Since the price of Bitcoin fell from its latest ATH of $69K last year.
As per the latest report shared by Glassnode, the Bitcoin Lightning Network update has allowed it to increase its public capacity and helped the second layer solution soar to new heights. At the same time, the project has made significant progress during the very concerning cascading period for Bitcoin and the cryptocurrency market.
Blockchain experts deem that the secondary Bitcoin network is seen as a sign of the cryptocurrency market about perseverance and stability. It seems like LN developers are determined to keep working on the network for a long duration faithfully. At the same time, the goal of the LN is to allow the users to make faster and cheaper transactions in comparison to Bitcoin.
The Success of Lightning Network
A recent study conducted by the Federal Reserve Bank of Cleveland has taken notice of the LN program. The study postulated that the increase in the LN adoption is strongly correlated with decreased traction for the main blockchain and makes way for the removal of congestion on the mainframe. LN has allowed users to make payments with greater efficiency using Bitcoin.
The study also claims the updates on the mainframe of Bitcoin, such as SegWit, did not have the same impact. Since the spread of LN news related to upgrades, the traction for Bitcoin has improved. To this end, Bitcoin prices are recovered by 70% and have a better chance of sustaining the price above $20k and maintaining a short-term rally.