The usage of Lightning Network has surpassed expectations: Over 60,000 non-cooperative channel closures

According to a research report from BitMEX, the use of the Lightning Network on Bitcoin has exceeded expectations. Accurately, more than 60,000 Lightning Network non-cooperative channel closures were recorded. And about 6,000 BTC were spent for closure transactions.

The growth of the Lightning Network is significant for the Bitcoin network

Using the Lightning Network is very simple; customers can buy drinks and food all night and pay all that money with an invoice. Lightning Network users can start multiple transactions and close the channel after all transactions are completed.

The channel closure that occurs on the chain on the Bitcoin Blockchain is immutable and immutable. As such, it allows for the secure settlement of multiple Bitcoin transactions at the same time.

According to BitMEX, the use of the Lightning Network has exceeded expectations in the past year. Moreover, using a second layer expansion solution like the Lightning Network is crucial to Bitcoin’s long-term growth trend. For most Blockchains, especially those using Proof-of-Work consensus algorithms, the capacity of on-chain transactions is limited.

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Source: Blockchain data based on BitMEX Research Blockchain analysis

Most significant Blockchains like Bitcoin and Ethereum can handle an average of 6 to 50 transactions per second. Going beyond this number often results in a higher fee. Therefore, the successful implementation and enhancement of the use of second layer solutions are essential for any large-scale Blockchain.

The findings may indicate that testing with mobile Lightning wallets (often creating their channels) may be much more common than expected. The data may also suggest that non-cooperative closure types are more common than cooperative closures, rather than community thought.

Many investors have to consider

The increasing use of second-class solutions is one of the many key fundamentals for Bitcoin’s long-term trend.

Other factors include a consistent increase in the hashrate, an active developer community, high developer activity, and an increase in unique addresses on the Bitcoin network.

Looking ahead, the scarcity of BTC as a store of value is set to decrease after halving Bitcoin’s scheduled rewards in May 2020.

In recent months, after the price of BTC fell by about 40% from its highest level in 2019, BTC has fallen close to its intrinsic value based on a report from JPMorgan.

If the fundamentals such as the use of Lightning, hash rates, and other things continue to improve over the coming months, it is expected to have a positive impact on Bitcoin price.

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