Topic: Bitcoin Lightning Network Reaches Its All-Time High. (Read 222 times)

To development, I think this is a good step at list the data shows more adoption in the LN since the lighting network was built to consolidate the Bitcoin network which to this present moment still charges high fees and the network may get congested at some point.

taproot only makes those using taproot(instead of traditional multisg) cheaper

if people that do use multisig but have not pre depositied coins into a taproot format. they cannot use the discount

taproot does not make existing multisig cheaper nor normal single privkey formats cheaper

EG segwit did not make legacy formats cheaper.. !!
it just meant people spending in legacy at more cost to then deposit into segwit can later pay less. but requires people moving funds in the first place using traditional formats to make the move

segwit didnt even offer a discount. instead it threw legacy formats into a realm of premium costs by multiplying the size by a weight factor of 4

EG if train tickets at a station cost $10, but then the station master promised some special discount ticket.. and then when releasing the special ticket normal tickets became 4x more expensive.. and the special ticket was charged at normal rates .. where by the special ticket didnt offer any discount to the normal ticket holders. then its not really a discount to the promise the station master made to the ticket holders

.. here is another one for you
i want you to notice the near flatline in $ amount from 2009-2017.. and then.. watch it never return to the flat line after 2017
and while looking.. ask yourself.. what happened in 2017..what changed.. hmm.. (answer: segwit)

this was the reason why the lightening network was first implemented to reduce transactions fees and scalability within the blockchain network. But by now, i don't see the reason why/how people are still using it. Nowadays, the transaction in the btc network costs almost nothing in addition to the latest taproot upgrade. I do really have wonder why many services implemented it like it's a revolutionary step toward the crypto innovation like twitter and many exchange platforms .

In the peek of the 2017 bull run I experience one fees situations that I can never forget for a long time, I paid almost $100 fees on a small amount of Bitcoin then the lighting network was not all that popular and the network was a lot confusing and hard to understand for many of us then, But with a lot of development, the network is now simple and easy to use with a lot of wallets running the lighting network nodes.

thats the thing though..
american/EU developers dont care about fee's because their experience is based on the northern/western hemisphere pricing of fiat goods.. and so they are not really in the mindset to push for code changes to employe a good fee formulae in bitcoin to reduce fee's further.

however lets take africans.. that 'couple dollars' you experience as being just a coffee or 6 minutes of minimum wage labour, thus not a problem..for you!... but is infact 5 HOURS (a few days groceries) FOR A BILLION PEOPLE in africa

so while you think bitcoin is good for americans to still get their weekly wage and still have 99.9% left over to spend.. in africa. its like a spending a third of their weekly wage just to receive their wage.

same goes for LN
lets use your experience by translating what an african perceives into western experience

imagine if fiat cost a third of a weeks salary just to transfer money to someone else. whereby paypal was utopian dream offering a payment system that can offer it at cheaper then a slice of bread. but here is the issue. to use paypal you need to set up about 3 paypal accounts which cost 3x the third of a week wage to set up 3 acounts(a whole weeks wage wasted. where by you also then need to put in 3 months of your wage into those accounts just to have a semi guaranteed assurance that atleast one account will have a route to a destination you want to use a months worth of salary to buy your monthly living expenses with. and then to settle up at the end of the month is another weeks wage wasted to close the paypal accounts.

yep Ln requires roughly 3 channels to have plausible amount of routing options to reach the majority of Ln nodes. meaning locking up funds in those 3 channels. meaning having enough value in each to possible pay people. which you have to have all pre-planned and pre set up for the month long lock..

enjoy the thought from the prospective of the "unbanked" population of billions of people..
they wont want to have to lock up multiple months of value for cheap fee's to use paypal(aka LN). and pay 3 fee's just to set up the arrangement with another 3 fee's to settle the arrangements next month.

nor are they liking the normal payment system (analogy: wire transfer aka bitcoin payment) of being high too.

the solution which helps both would be to have bitcoin fee's being less.. but then people would still need to think about are they doing more then X payments a month to warrant preplanning spending habits and locking up large chunks of value to use a cheaper network fee for regular/multiple payments above the X per month threshold

so people will still be questioning the utility of LN if they are not doing more then 6 payments a month using crypto

I’m not sure in what world these guys are living in? I don’t see any problems in transacting through current bitcoin network. The fees are literally tiny, the transaction speed is pretty good. Usually it gets transacted real fast, it takes around 10 minutes for any transaction that I do these  days. This is also true for the transaction which are done on the high timings. So definitely I see no point in switching to bitcoin lightening network. Can I understand why there are peeps who has high fees and higher timings for transfer? Is it associated with higher transaction block?

To be honest, I think transaction fees used t be a bigger problem than they are now. Confirmation takes around 5-10 minutes and costs a couple of dollars, from my experience. While that is inconvenient if one wants to buy food in the supermarket or a cup of coffee, it is good enough for online purchases which don't require immediate payment processing. So it's good that the Lightning Network is getting more popular, but I am not sure it's needed in many cases.

There are also more and more wallets & services out there that handle lightning and do it fairly well. Blixt wallet or blue wallet and several others now. Just send BTC ones and you are good to go for LN transactions. No more running your own node or jumping though hoops to connect to another node. I think that helps people use it.
I know I have said it about other things but for a large part here on the forum we are more willing to play around and run our own things and do whatever to use stuff.

That is not the rest of the world, they for the most part don't care how it works, don't want to know how it works, they just want it to work. Now that more and more LN does that I see more people getting into it.

-Dave

i wouldnt call it "people loading channels"

id call it services locking up reserves so that their customers, should their customers eventualy find someone that wants to pay that person. or that person wants to withdraw from that service. the reserve is locked ready to process..

majority of the locked coins is not from millions of people loading in their weekly value.
its services locking up value incase people want to receive value via LN

in short its more like
user            user         user                user       user       user
     0             0           0                       100      100     100
       \            |          /            not             \        |      /    
        100    100   100                                 0     0     0
            LN service                                  btc/fiat exchange
                 300
                   !
                 300
        btc/fiat exchange

(where by in both cases only allows users a 100 spend limit each, for when they want to receive value in LN)

you can tell that its set-up is more like the left side ascii diagram. because there are alot of services offering "inbound capacity"

I was thinking this about fees but maybe people are loading channels/testing with the lightning network now that fees are low. It's probably a better assumption to make but the lightning network might be similar to segwit in thst it takes a while to adopt (if it does see network wide adoption - segwit had the same uncertainty).

(afaik lower fees and emptier blocks make the lightning network more secure).

You may not be wrong in that the 3600 mentioned in the news may be wrong, because that amount is small to be the total number of Bitcoin transactions within the lighting network. Being that as it may the focus here is to acknowledge the growth of Bitcoin Lighting network usage due to wider public adoption.

It appears that you might have misunderstood network capacity. Similar to much of Ethereum's layer 2 platforms, Lightning's network capacity is also the same to the total value locked in Arbitrum or Optimism. I might be wrong, however, I am quite certain it cannot be 3600 bitcoins in a transaction.

In any case, this news is good for bitcoin holders. We should hope that there will be smart contract functionality in Lightning's development roadmap.

People always wanted convenience rather than complicated things especially when their time involves and a lightning network will provide fast transactions with easy steps to follow. that's why we see these days people prepare it than the traditional bitcoins transaction method which has the disadvantage whenever it is congested and the result will not be praiseworthy at all. Now that they see the usefulness of the lightning network, I'm sure there will be some new improvements and adaptations for it in order to work well in the future.

"processing capacity"
"public capacity"

um no.. just no

lets simplify an explanation..
imagine this is the network with value associated to each channel partner:
               F 1000:1000 G
                \                /
A 100:100 B 70:100 C 100:100 D 50:100 E

imagine this diagram of 2600 "processing public capacity"(as you call it)

well. if F & G sit there doing nothing.. whereby A pays E via only B, C, D then its not 2600 processing capacity.. its only 50
because the most that A can send E is 50

and even if A pays E via B, F, G, C, D its still not "processing capacity" of 2600.. because again all that A is able to send E is 50..

how about use proper words..
.. like
publicly revealed total locked
publicly revealed total held

..
oh and by the way.. if i liked the network.. i personally me alone could put my old hoard into a lock. and announce it on LN and multiply the entire "capacity" while never doing a single payment on it..
.. which shows how feeble and useless the stat really is in comparison to showing viable functional utility of said amount
..
yep anyone with any substantial stash can decide they are doing nothing with their hoard for years, have no plans to spend any of it. so can EASILY put it into a multisig to themselves make it appear as a LN commitment and announce it through the LN gossip and hey presto. make fake "capacity" that is never actually used.

have a nice day thinking through that thought

Bitcoin transaction fee is not high, though if the mempool is congested, the fee will increase, but since I have known mempool and how bitcoin transaction works, the days to when the mempool is not congested to when the mempool is congested is like 95 : 05. So bitcoin on-chain fee is not high, only exchanges and some custodial wallet with high fee are making people to have such high fee misconception. But you are not wrong about lightning network, the fee is cheaper and the transaction is faster.

With the problem of high fees and long transaction confirmation time faced in the Bitcoin network which is always associated with price rise, which is most evident during bull run season as seen during the 2021 bull market, quite a large number of Bitcoin users are now diving into the adoption of Bitcoin lighting network a layer 2 network on the Bitcoin blockchain that offers cheaper transaction fees and faster transaction confirmation time. This growth in the adoption of lighting network has resulted in an increase in the lighting network capacity from 1000 Bitcoin in a transaction in 2021 to up to 3600 Bitcoin in transactions in the LN, this increase has made many wonders as to how and where the layer 2 networks on the native Bitcoin blockchain network will work to harmonize it balance operation interacting an unchain network with the original Bitcoin network. This new processing capacity will eventually give birth to more network demands on the unchain network that has promised to provide a better alternative to the Bitcoin network.
The chart below shows the growth of Bitcoin lighting network

Such: https://bitcoinist.com/bitcoin-lightning-network-capacity-reaches-new-ath/