Lighting Network adoption is helping to scale Bitcoin across the globe. It will also be crucial to safeguarding our digital freedoms.
This opinion editorial is by Paolo Ardoino, chief technology officer at Bitfinex.
Don't listen to the fearful avalanche of uncertainty, doubt and fear (badum tssss), which is coming down from large parts of the popular media: Bitcoin is here for the long-term.
According to a joint report by Bitget, Boston Consulting Group and Foresight Ventures, crypto users will reach one billion by 2030 according to a recent joint report. It was noted that the industry is still in its early adoption phase and there is plenty of growth ahead.
Although there are clear signs that the market will grow for many years, some skeptics continue to question the viability and sustainability of cryptocurrency such as bitcoin as a popular means of payment. Particularly, the issue of scaling has been cited as a significant obstacle to widespread adoption.
Bitcoin's security and decentralization focus limits its ability to process large volumes of transactions in a short time. It is often criticized that Bitcoin's focus on security and decentralization means that it cannot process large blocks of transaction data quickly. This could lead to fees that are higher than the cost of the coffee.
Bitcoin must be able execute transactions quickly and cheaply if it is to reach its full potential as a payment system in an alternative financial system. The Lightning Network is crucial to Bitcoin's success as a payment option.
Lightning Network is a second-layer protocol that facilitates micropayment channels at large. It allows Bitcoin to return to its original purpose of a peer to peer payment network. Transactions are taken off-chain, making them faster and cheaper.
According to BitcoinVisuals data, there are 4,700.623 bitcoins in liquidity flowing through Lightning Network at the time this article was written. Even in a bear market, the Lightning Network's capacity has been steadily growing over the past year. This growth in usage shows that technology is still in its infancy.
Bitcoin's Real-World Adoption is Growing
Bitcoin has seen rapid adoption and growth. It is now legal tender in emerging countries like El Salvador and the Central African Republic. These countries can accept bitcoin via their mobile phones to pay for Big Macs and frappuccinos through brick-and-mortar stores.
The widespread acceptance of cryptocurrency transactions for everyday goods and services isn't stopping there. Payments apps like El Salvador's Chivo Wallet allow for low-cost, fast transactions. Cash App integrated Lightning Network in February and made zero-fee bitcoin payments possible for its customers. This widespread adoption has led to a rise in popularity. The Lightning Network's payment volume grew by 410% over the last year. Arcane Research also reported that payments through the Lightning Network were made available to more than 80 million people in March, as opposed to just 100,000 in August 2021.
The number of people who have access to lightning network payments will continue to rise as more cryptocurrency exchanges incorporate it into their platforms. This will make the payments industry highly vulnerable to disruption. Two U.S. senators have introduced legislation to exempt small cryptocurrency transactions from tax this summer, even crypto-skeptical superpowers.
Lightning Network offers many benefits beyond the ability to make payments fast and at a low cost for everyday users. Many companies are exploring ways to use this tool for financial freedom to protect freedom of speech.
Protecting Freedom of Speech with Bitcoin
Without freedom of speech, communication, and privacy, true decentralization and financial liberty cannot be achieved. The value of the Lighting Network's payments can be seen in its ability extend low-cost, high speed cryptocurrency transactions to more people. But there is another benefit. Arcane Research found that approximately 50% of activity was from peer-to–peer transactions. This means that half of the Lighting Network activity comes from individuals quickly connecting to one another.
Some companies are using Lighting Network technology to secure video conferencing and direct messaging. There has been much written about how large tech can collect data from its users and then sell it to the highest bidder. This space is also open for disruption. Alternative messaging apps like Bitrefill, Sphinx, Strike and Sphinx can help achieve true decentralization. They are fast, private, easy-to-use, private, and free of charge.
The Lighting Network could allow for quicker answers to questions about bitcoin's viability and scalability. The Lighting Network may also be a solution to financial freedom and freedom of speech, as crypto builders continue to innovate. The Lighting Network is expected to have one billion users by 2030. It will be interesting to see how more countries and companies take advantage of its ability to process data quickly at a low cost.
Paolo Ardoino contributed this guest post. These opinions are not necessarily those of BTC Inc.
By: Paolo Ardoino
Title: Widespread Bitcoin Adoption, Digital Freedom Can Only Happen Through Lightning
Sourced From: bitcoinmagazine.com/culture/bitcoin-adoption-freedom-via-lightning
Published Date: Tue, 20 Sep 2022 12:00:00 GMT