Lightning Speed: Eight Mind-blowing Facts About The Lightning Network

0 66

Welcome to “Lightning Speed,” a new section in which NewsBTC will explore the possibilities that Bitcoin’s Lightning Network opens. In this first edition, we will focus on Peter St Onge’s “The Lightning Network is About to Change the World” article. According to his bio, the academic “holds a Ph.D. in Economics from George Mason University, and a B.A. in Economics and Political Science from McGill University.” Make of that what you will. 

St Onge was at the Free State Project’s Porcfest in New Hampshire when he had an epiphany. “The Lightning Network is now moving Bitcoin exponentially closer to becoming a true universal medium of exchange that is controlled by the people, not by governments.” That’s right. Bitcoin already won the store of value race, but, with the Lightning Network, it becomes the apex medium of exchange. What does this mean for the world?

Lightning At The Porcfest

Before we blow minds, let’s explore the Free State Project’s Porcfest real quick. St Onge sets the stage:

“As we enjoyed the mild New Hampshire summer, people wandered over to buy $2 sodas with Bitcoin, paying instantly and with zero transaction fee. I watched patient bitcoiners onboard Lightning newbies, taking them from zero to a Lightning wallet full of fresh hot sats in literally 5 minutes. It was the iconic “buy a coffee with Bitcoin” on steroids.”

This was before everybody and their grandmothers went to Bitcoin Beach to test the Lightning Network first hand. Watching the transaction’s speed and comfort, St Onge knew. This was “Confirmation that the Bitcoin developer ecosystem has now built the holy grail: Bitcoin as a true medium of exchange. One where transfers are instant, essentially free, and as easy to use as the simplest app on your phone.”

St Onge’s Four Insights About The LN As A Medium Of Exchange

  • The fees are really that cheap. St Onge recalls, “our sats party replicated what’s now going on across the world. Just last week at El Salvador’s now-famous Bitcoin Beach, 20,000 near-instant transactions went around with aggregate fees of $4.98. One-fortieth of a penny per transaction.” 
  • Traditional banking can’t compete. “For perspective, that’s about 500 times cheaper than the credit card fee on a $5 cappucino, and it’s at least 4,000 times cheaper than the average credit card transaction fee.”
  • It gets better. The fees are not correlated to the transaction’s total amount. “Note, 1/40 of a penny would cover essentially any amount — you could buy a house with Lightning for 1/40 penny.” 
  • The Lightning Network doesn’t sleep. “It transfers instantly, 24/7 including holidays, and is able to leap national borders and regulatory gatekeepers with zero effort.”

BTCUSD price chart for 12/04/2021 - TradingView

BTC price chart for 12/04/2021 on Tradestation | Source: BTC/USD on TradingView.com

St Onge’s Four Insights About The Lightning Network’s Growth & Potential

  • The network is growing exponentially. “Lightning Network statistics have exploded since May, with network capacity now expanding by an annualized 635%. As these new Lightning apps onboard millions of people, they then pass along and train newbies by word-of-mouth, creating exponential growth that can very quickly go from irrelevant to dominant.” 
  • The project has been years in the making. “The original Lightning Network White Paper came out in 2015, and after heady growth through 2019, the Network was essentially moribund these past 2 years.”
  • Most altcoins are no longer needed. “First, it knocks the legs out of competing “medium of exchange” (MOE) coins like Dogecoin, Bcash, Ripple, Litecoin, or their many knock-offs.” 
  • This is just the beginning. “Just as the internet needed user-friendly interfaces (web browsers) before it could really change the world, Bitcoin needed user-friendly interfaces to grow beyond money and towards being the base layer — the “rails” — for decentralized services built on Bitcoin alone.”

The Lightning Network is changing the world already. Because of that fact, NewsBTC created “Lightning Speed,” a feature about the possibilities that Bitcoin’s Lightning Network opens.

Featured Image: jplenio on Pixabay | Charts by TradingView
Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 19,148.70
ethereum
Ethereum (ETH) $ 1,325.77
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 272.51
xrp
XRP (XRP) $ 0.446537
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.443566
solana
Solana (SOL) $ 32.75
dogecoin
Dogecoin (DOGE) $ 0.060501
polkadot
Polkadot (DOT) $ 6.36
shiba-inu
Shiba Inu (SHIB) $ 0.000011
dai
Dai (DAI) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 1,323.40
matic-network
Polygon (MATIC) $ 0.740763
tron
TRON (TRX) $ 0.059423
avalanche-2
Avalanche (AVAX) $ 17.20
uniswap
Uniswap (UNI) $ 6.31
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 19,187.46
cosmos
Cosmos Hub (ATOM) $ 13.41
ethereum-classic
Ethereum Classic (ETC) $ 28.17
okb
OKB (OKB) $ 15.35
leo-token
LEO Token (LEO) $ 4.10
chainlink
Chainlink (LINK) $ 7.79
litecoin
Litecoin (LTC) $ 52.50
ftx-token
FTX (FTT) $ 23.70
near
NEAR Protocol (NEAR) $ 3.59
stellar
Stellar (XLM) $ 0.110536
crypto-com-chain
Cronos (CRO) $ 0.111541
monero
Monero (XMR) $ 144.31
algorand
Algorand (ALGO) $ 0.344019
bitcoin-cash
Bitcoin Cash (BCH) $ 114.61
terra-luna
Terra Luna Classic (LUNC) $ 0.000274
quant-network
Quant (QNT) $ 128.16
flow
Flow (FLOW) $ 1.65
apecoin
ApeCoin (APE) $ 5.40
filecoin
Filecoin (FIL) $ 5.67
vechain
VeChain (VET) $ 0.022588
internet-computer
Internet Computer (ICP) $ 6.11
chain-2
Chain (XCN) $ 0.072267
hedera-hashgraph
Hedera (HBAR) $ 0.058500
frax
Frax (FRAX) $ 1.00
chiliz
Chiliz (CHZ) $ 0.247250
tezos
Tezos (XTZ) $ 1.45
the-sandbox
The Sandbox (SAND) $ 0.844798
decentraland
Decentraland (MANA) $ 0.693986
eos
EOS (EOS) $ 1.15
axie-infinity
Axie Infinity (AXS) $ 12.37
theta-token
Theta Network (THETA) $ 1.09
elrond-erd-2
Elrond (EGLD) $ 46.49
aave
Aave (AAVE) $ 75.80
lido-dao
Lido DAO (LDO) $ 1.60
true-usd
TrueUSD (TUSD) $ 1.00
paxos-standard
Pax Dollar (USDP) $ 1.00
bitcoin-sv
Bitcoin SV (BSV) $ 49.83
compound-usd-coin
cUSDC (CUSDC) $ 0.022611
kucoin-shares
KuCoin (KCS) $ 9.02
iota
IOTA (MIOTA) $ 0.307227
ecash
eCash (XEC) $ 0.000041
usdd
USDD (USDD) $ 1.00
cdai
cDAI (CDAI) $ 0.022021
the-graph
The Graph (GRT) $ 0.099367
bittorrent
BitTorrent (BTT) $ 0.000001
zcash
Zcash (ZEC) $ 56.56
huobi-token
Huobi (HT) $ 4.39
maker
Maker (MKR) $ 725.02
pancakeswap-token
PancakeSwap (CAKE) $ 4.65
neo
NEO (NEO) $ 8.88
klay-token
Klaytn (KLAY) $ 0.199499
gatechain-token
Gate (GT) $ 4.20
tokenize-xchange
Tokenize Xchange (TKX) $ 7.59
helium
Helium (HNT) $ 4.68
celsius-degree-token
Celsius Network (CEL) $ 1.41
radix
Radix (XRD) $ 0.058880
evmos
Evmos (EVMOS) $ 1.90
fantom
Fantom (FTM) $ 0.226886
havven
Synthetix Network (SNX) $ 2.29
compound-ether
cETH (CETH) $ 26.50
osmosis
Osmosis (OSMO) $ 1.16
nexo
NEXO (NEXO) $ 0.924014
bitdao
BitDAO (BIT) $ 0.472709
pax-gold
PAX Gold (PAXG) $ 1,626.43
arweave
Arweave (AR) $ 9.36
thorchain
THORChain (RUNE) $ 1.56
zilliqa
Zilliqa (ZIL) $ 0.031253
enjincoin
Enjin Coin (ENJ) $ 0.460305
rocket-pool
Rocket Pool (RPL) $ 24.40
dash
Dash (DASH) $ 41.55
basic-attention-token
Basic Attention (BAT) $ 0.296875
blockstack
Stacks (STX) $ 0.325473
defichain
DeFiChain (DFI) $ 0.737598
ravencoin
Ravencoin (RVN) $ 0.036291
compound-governance-token
Compound (COMP) $ 61.82
tether-gold
Tether Gold (XAUT) $ 1,678.78
stepn
STEPN (GMT) $ 0.687939
kava
Kava (KAVA) $ 1.46
mina-protocol
Mina Protocol (MINA) $ 0.591881
terra-luna-2
Terra (LUNA) $ 2.47
xdce-crowd-sale
XDC Network (XDC) $ 0.029104
waves
Waves (WAVES) $ 3.87