Lightning Speed: Eight Mind-blowing Facts About The Lightning Network
December 04 2021 - 11:28AM
NEWSBTC
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.” Yes, #LightningNetwork is being used at #PorcFest2021.
Ana sold a water to @jfcarpio as @Joe_Saz watches
pic.twitter.com/sUou8otfP4 — Patrick Motorist (@BitcoinMotorist)
June 27, 2021 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.” 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
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