Bitcoin Lightning Network capacity strikes 5,000 BTC

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Bear markets are for building capacity on the layer-2 Lightning Network. Despite macroeconomic headwinds and sluggish price action, the Lightning Network, the layer 2 payment solution for Bitcoin (BTC), continues to thrive.

The Bitcoin Lightning Network has reached a milestone capacity of 5,000 BTC ($96 million). Indeed, more and more Bitcoin is being introduced to the Lightning Network payment channels worldwide, as Bitcoiners continue to support the growth of the network.

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Bitcoin Lightning Network capacity. Source: Check out Bitcoin

The Lightning Network allows users to send Bitcoin (or satoshis, the smallest amount of Bitcoin) to send or receive money faster and with lower fees. The more capacity in the network, the more liquidity is available. As a result, users may experience faster payment speeds and potentially larger transaction volumes.

First created in 2018, the Light Network has been under fire recently. Bitcoin influencers such as Udi Wertheimer have discussed the “failure” of the network, claiming that no one uses the network However, the network reached 4,000 BTC capacity in June and over the past four years, it has become a reliable payment network and is popular in El Salvador, the Isle of Man and Gibraltar:

Nourou, from Bitcoin Senegal, explains why the LN is so important. He told Cointelegraph, “In Senegal, we have a 50 FCFA economy. That is, the Senegalese of the working and proletarian class, who represent the majority of the population, buy, for their breakfast, 50 FCFA (€0.07 ) of milk, sugar, coffee, water, and many other basic products.”

“Microtransactions are our economic reality. For Bitcoin to become the norm in the coming years, and in our economies, the lightning network should have sufficient capacity to support these microtransactions.”

Nicolas Burtey, CEO at Galoy, was one of the first to celebrate the achievement of 5,000 Bitcoin. Burtey told Cointelegraph that the adoption of Bitcoin in El Salvador was the tipping point for the Lightning Network. This is where all the metrics really started to take off.” He joked, “The bill should actually be called the Lightning Act!”

Burtey continued, explaining that while the 5,000 BTC metric is important, “Payment speed per channel is growing even faster. It’s a more significant metric, but only node operators can see it, so it’s not as prominent in the media.”

The Lightning Network, once a space for hobbyist Bitcoin enthusiasts, is now attracting large corporations. MicroStrategy is now hiring a Bitcoin Lightning Software Engineer. MicroStrategy is the largest holder of Bitcoin among publicly traded companies, with 130,000 BTC on its balance sheet.

Related: Raise a glass to Satoshi’s Place: the challenge of running Bitcoin businesses

Elsewhere, Strike, a Bitcoin Lightning company headed by Jack Mallers, raised $80 million to “revolutionize payments” for merchants. Mallers and Strike spearheaded El Salvador’s Bitcoin adoption plans in 2021.

For Nourou, who hosts Dakar Bitcoin Days in December, the first major Bitcoin conference in Senegal, the 5,000 BTC milestone is monumental: “Increase of BTCs blocked in the network and the number of channels opened in parallel is another step towards the democratization. of Bitcoin transactions in the world.”