The Lightning Network is growing, but with some scalability and security deficiencies
Bitcoin's Lightning Network is expanding exponentially despite a number of scalability and security gaps in the protocol.
Bitcoin’s Lightning Network usage is growing
The Lightning Network (LN) is a solution to Bitcoin's scalability problem. It was developed by Lightning Labs, a San Francisco-based company that is developing the next generation of decentralized financial infrastructure.
The idea was to increase the transaction throughput of BTC's blockchain network. This open source protocol enables instant payments at exceptionally low fees with millions to billions of transactions per second as well as cross-chain atomic swaps.
BitMEX Research, a subsidiary of the crypto derivatives trading platform BitMEX, published its sixth report on the Bitcoin’s Lightning Network. The team focused on blockchain data. Based on this data, it was determined that LN usage is “higher than expected”.
“The volume of transactions here [im nicht-kooperativen Kanal] is quite large and could indicate more LN experiments than many expected. The data also indicate that non-cooperative closures are more common than you might think. ”
According to BitMEX Research, a non-cooperative channel closure occurs when the output of a particular transaction is redeemed during the sweeping funds after the channel is closed. To date there have been almost 60. 00 0 channel closure transactions totaling 1. 074 Issue Bitcoin.
The analysts at BitMEX expected that the number of non-cooperative sewer closures would be around 30. 00 0 would be. This is half of the actual number shown. The massive number raises concerns about the stability of the LN.
“The fact that non-cooperative closures are more common than many thought means that the benefits of privacy and scalability of LN are also less than expected by many. ”
Despite the scalability and security deficiencies on the LN, BitMEX Research confirmed that the non-cooperative closings have declined significantly since March 2019 are. The sharp decline could be an indication of “improved user behavior and improved wallets”.
The Lightning Network is still an experimental project. Although various crypto exchanges, such as Bitfinex, who support LN deposit and withdrawal support for faster and cheaper transactions, many argue that it is not yet ready for production.
Reddit user ZipoTm “lost” four bitcoins on the LN and indicated that it was not easy to use. Time will tell if developers will be able to make improvements to the LN to curb the increase in non-cooperative channel closures.
Text proof: cryptoslate