Surge in Bitcoin Lightning Network capacity may just be the tip of the iceberg

Quick Take

A rapid surge in the capacity of Bitcoin’s Lightning Network is now nearing a year-to-date high of over 5,500 Bitcoin, coming close to its all-time high.

This swift increase, observed predominantly over the past month, approximates around $180 million, representing the total BTC locked within this Layer 2 payment protocol.

The Bitcoin Lightning Network engineered atop the Bitcoin blockchain, aims to enable more affordable, speedier, and scalable transactions than traditional on-chain Bitcoin transactions.

Lightning Network Capacity: (Source: Glassnode)

However, this analysis may not capture the whole picture.

It’s crucial to consider the potentially larger Lightning Network capacity operating under TOR, The Onion Router. Known for bolstering transactional privacy by hiding IP addresses, TOR can circumvent censored regions, indicating an unseen swath of potential network capacity.

In theory, this infrastructure could facilitate discreet interactions between nation-states or corporations.

Lightning Network Capacity: (Source:
Lightning Network Capacity: (Source:

The overall node count for the Bitcoin lightning network stands at 14,559. Of these, 10,471 are TOR nodes operating in public channels that are formally announced, leading to a TOR capacity representation of 83%. However, the node count for private channels remains undetermined.

The post Surge in Bitcoin Lightning Network capacity may just be the tip of the iceberg appeared first on CryptoSlate.

Source link

Like it? Share with your friends!