Earn Bitcoin with Sports

Bitcoin Lightning Network Hits All Time High in Average Payment Channel Capacity

Crypto, Bitcoin
Published 1 week ago
ID #1719
QR CODE
1 photo
Full Node
Bitcoin Lightning Network Hits All Time High in Average Payment Channel Capacity
Crypto, Bitcoin,
Published 1 week ago

Description

Sending large sums of money through the Bitcoin Lightning - LN network is becoming more feasible, thanks to the constant growth in the average capacity of its payment channels.

The average capacity of LN payment channels is 4.7 million satoshis, or 0.047 BTC. It is the first time that this figure has been reached in the Bitcoin micropayment network. While, based on the current price of BTC in the market, the average record capacity of these channels is around USD 880.

Through the first half of 2022, the average transaction capacity offered by Lightning Network channels has increased by 17%. Interestingly, due to the crash in the market price of bitcoin, the average amount in fiat money earlier this year was higher than it is today, around $1,800.

LN can house approximately USD 75 million that can be sent in portions between the channels that make up the network. However, this does not mean that one person can send such amount of money to another in a snap.

The true ability to send money in LN is measured by the payment channels, which are the ways that the nodes that make up this network communicate.

The capacity of payment channels is depleted as they are used. For example: Alicia opens a payment channel together with Pedro that has a capacity of 0.35 BTC. If Alice today sends 0.2 BTC to Pedro, but she wants to send another 0.2 BTC tomorrow, it will be impossible for her, since Alicia would only have 0.1 BTC of liquidity in her channel after her first transaction.

A BitcoinTalk forum user made a comment related to the issue of LN channel capacity and its global capacity. According to franky1, the total capacity of the network is as insignificant a figure as the market capitalization of a cryptocurrency, since it does not show real utility.

The payment routes in the Bitcoin Lightning Network

A payment on the Lightning network can pass through 3 or more different payment channels and nodes before reaching its destination.

The solution to liquidity problems in payment channels when trying to make a transaction in LN is simply to re fund the channel.


Vote
Result 1 votes

 

Contact seller

    frankois
    User-Chain-Block
    You must log in or register a new account in order to contact the advertiser.

    Comments

    Question? Need more information? Want to ask question? Add new comment...
    Ask questions related to this listing only.
    Comments are moderated.
    Add new comment
    Full Node

    Seller's info

    frankois
    User-Chain-Block

    X-NODE Location

    Crypto, Bitcoin
    Bitcoin Lightning BTC Network Payment