It was hoped that the Lightning Network was going to have a massive impact on Bitcoin and the processing of its transactions. And the effect has already been massive as over 4,000 merchants are now enjoying the implications of the latest Bitcoin has to offer with only two months of testing.
Lightning Network’s Milestone
The results from this phenomenal new element of Bitcoin have been causing all sorts of excitement in the Cryptocurrency world. Although it is difficult to make an expectation of what actually should have happened with the Lightning Network there have been some major milestones passed already.
This vitally new component of Bitcoin has already made a huge mark on the number one Cryptocurrency allowing transactions to operate off the main Bitcoin network leaving processing to take place a lot faster. The main objective of the Lighting Network was to implement something that would dramatically improve the processing speed of Bitcoin as well as keep the costs low and at the same time ensure that more and more investors are able to participate in the digital economy.
This scalable addition to Bitcoin has already achieved 100 Bitcoin capacity at the beginning of this month. It took more than 3,300 nodes and 12,000 open channels to secure this momentous occasion. This is even more incredible when you consider that the Lightning Network hit the 50 Bitcoin capacity only in July.
CoinGate’s Pilot Program
Payment processing startup company CoinGate began its program with a mere 100 merchants testing out the system. It was not sure how this pilot program would go and what the outcomes would be, however, things are looking pretty rosy at the moment. The main aim was to test out how the Lightning Network and how it would operate in the real world. Those merchants involved were given a security figure just in case they lost money during the testing phase and things didn’t go as planned. As with all technology and software releases, there are always going to be bugs and issues when a new or latest version is launched. The hope is that these are found and repaired as soon as possible and this is what happened with the Lightning Network in that eight week pilot process.
The Next Phase
As the pilot project did prove so successful, the Lightning Network has now been opened up with more than 4,000 merchants relying on the system. The fact that the payments are instantaneous is a massive boost for merchants and customers alike. Not only are the transactions administered straight away but they are also cheaper in terms of transaction fees. This is great news for customers and merchants alike, especially if the payment is a small one. Previously with Bitcoin, only larger payments could be accepted and administered. However, this has all changed because of the Lightning Network.
There are still many challenges ahead for the Lightning Network that is for sure however its foundation has been solid and there are many happy customers already. As long as feet firmly remain on the ground and the main focus remains insight, things are only going to get better and better.