on the crypto
With the bitcoin price hitting new highs recently (here the quotation in real time), the operators of the routing nodes of Bitcoin's Lightning network are preparing to welcome the new users who usually arrive in a race to the top.
Is the Lightning Network ready to handle a new wave of users?
Bitcoin's Lightning Network promises faster, cheaper payments, without the sometimes insane fees associated with the underlying Bitcoin network. Launched in 2018, the platform is still relatively new.
For this, the developers think that it may hide bugs that could lead to loss of funds. Would the network be able to handle an influx of new users? Those who manage the routing nodes are seriously preparing for such a scenario. Bitcoin Lightning's routing nodes are those in charge of transferring payments across the network.
Why use the Lightning Network?
In one word: commissions. Bitcoin's fees are now higher than they have been in more than two years, reaching an average of $ 13 per transaction. With Lightning, users can avoid these fees. Lightning payments usually cost less than a dime, making the payment method more and more appealing as fees increase.
Avoid bitcoin fees
Channels are the lifeblood of the Lightning Network. They are also the means by which Lightning routing nodes relay payments to others. But building such channels requires one-time on-chain transactions, which can be costly if the network is congested.
So, Lightning routers are actively looking for the best times to open channels. They noted that fees are generally lower on weekends, when users send fewer transactions.
Therefore, at the moment, they are suggesting Lightning users to open channels on weekends. Later, during the week, you will be able to use Lightning payments and avoid sky-high fees.
Build liquidity and connections
Once a Lightning channel is open, it's not all downhill. Lightning requires a lot of cash management that is unfamiliar to most people. In short, it's not enough to just invest money in the Lightning Network; money needs to be moved to the right places at the right time.
Not to mention that every time a payment is made from a routing node, this liquidity is shifted. Hence, the routing nodes must constantly manage the position of the coins. The goal of the developers is to find out how to use routing nodes sustainably without clogging the mempool when it gets expensive.
Thousands of new users?
While many Lightning routers are preparing, some think the network is already equipped for the future. "I think Lightning Network is already capable enough to support thousands of new users," Paolo Ardoino told Bitfinex CTO. The cryptocurrency exchange operates both the second and third Lightning routing nodes on the network and was one of the first exchanges to support Lightning payments.
