Transactions in Two Years, According to BTC Tech Company
The Lightning Network has seen huge growth in transactions over the past two years despite the falling price of Bitcoin (BTC), according to a BTC technology firm.
River, a company that offers Bitcoin brokerage and custody services, analyzed data from node operators that comprise 52% of the public capacity of the Lightning Network, a layer 2 solution for BTC that aims to solve scalability issues.
River estimates a lower bound of 6.6 million Lightning transactions routed in August and notes that the upper bound estimate could be several times that number, but is not quantifiable because the data was not available for transactions between just two participants or private transactions . Routed transactions involve more than two nodes.
Explain the signature,
“This represents a 1,212% increase over the estimate of 503,000 Lightning payments for August 2021 by K33 (formerly Arcane Research). This growth occurred despite a 44% drop in the price of Bitcoin and a 45% drop in search interest. “This is the equivalent of 2.5 transactions per second (TPS), compared to Bitcoin’s on-chain average of 4.4 TPS and the August 2021 K33 benchmark of 0.2 TPS.”
According to River, gaming, social media tipping and streaming are behind 27% of the growth in network transactions.
The company also notes that the Lightning Network processes at least 47% of on-chain Bitcoin transactions daily.
At the time of writing, Bitcoin is trading at $26,892.