Even though we’ve already heard so many good things about Bitcoin, cryptocurrency still has a long way to go. For example, most people eagerly wait for BTC to attain global acceptance. They want to enjoy the low transaction fees and breakneck operational speeds. However, no one ever really thinks about the technical aspects. We’ll see many people who want to own Bitcoin and trade it on outstanding crypto exchanges like quantum ai
As things stand now, the Bitcoin network can’t handle numerous transactions. There’s a limit beyond which operations could stall and cause devastating economic impacts. Perhaps you’re wondering how this is even true because you see several people interacting with Bitcoin worldwide.
While your concern might be correct, it’s crucial to note that not everyone uses BTC technology for transactions. Most users hold Bitcoin as a commodity for its monetary value. So this means that this cryptocurrency is still very rare in transactions.
What if the Whole World Were to Adopt Bitcoin Technology Now Fully?
As we’ve already stated, Bitcoin’s current technical specifications can’t process transaction requests fast enough. You’ll wait between 10 to 60 minutes for your request to go through. Additionally, the Bitcoin blockchain network can’t handle many transactions at a go. Let alone the 1 billion users the tech supporters constantly dream of achieving.
Some problems we’re likely to experience if Bitcoin technology goes global include:
- Low speeds might force people to ditch the platform
- Increased network energy consumption, which will lead to higher transaction fees
- A possible collapse due to Bitcoin’s technical limitations
Perhaps, this is where the Lightning Network concept comes in.
What’s the Lightning Network Technology?
The lightning network concept has been with us since 2016. The technology developers have worked tirelessly since its release to make it the ideal solution. Their main aim is to address the challenges associated with the Bitcoin blockchain platform. Lightning network technology answers various BTC limitations such as small transaction capacities, low operational speeds, and so much more.
The lightning network adds a layer to the blockchain network. Being the second, it’s immensely capable of revolutionizing Bitcoin technology for more viable uses. Once completed, this digital initiative will make Bitcoin cryptocurrency more reasonable and attractive to various parties worldwide.
How Lightning Works
Lightning is different from Bitcoin’s primary network in numerous aspects. First, it allows users to conduct all their transactions off the blockchain and broadcast only the final one for recording. Working off the main blockchain relieves it from heavy traffic, and the speed increases exponentially.
The excellent speeds enable the lightning network to process transactions instantly. And this improves money flow significantly, causing a positive impact on the overall economy. Moreover, reducing the workload on the primary blockchain platform minimizes energy requirements and costs.
What Else Can the Lightning Network Do?
Just a lot! The key reason for developing lightning was never to speed up operations nor make them more affordable. Instead, the founders wanted to make Bitcoin more useful. They wanted to add more ways to use BTC in your everyday life. For example, the network will house several software development tools.
Software engineers will be able to create and sell various applications. Moreover, lightning will facilitate communication technology upgrades such as advanced VPNs, and private messaging, among others.
Importantly, this superior Bitcoin network can make money more accessible to everyone, especially in the developing world. Even though not the primary goal, BTC might become more prevalent in business transactions than ever.
The lightning network is a truly transformative innovation. It’s an additional layer on Bitcoin’s primary blockchain. Lightning executes most operations outside the primary network and broadcasts only the final one to the blockchain for recording. This way, the traffic goes down significantly on the blockchain, thus speeding up the rate of transactions.
Low traffic also means low power requirements. And this can make BTC more sustainable for a better future. The lightning network will also facilitate the development of various applications. Additionally, new communication solutions like private peer-to-peer messaging and VPNs will emerge.