Bitcoin’s Lightning Network is considered the most important development of the year. Solving the problem of scalability is not an easy task. Although significant progress has already been made, some concerns remain. Larger payments and also aspects of capacity are causing problems, as it appears that only a handful of nodes provide more than 50 percent of capacity.
Concerns about the Bitcoin revolution
The Lightning network should scale the leading crypto currency and enable lightning-fast transactions. However, this is only possible if many people or clients are using the technology, which is only in the beta test phase.
Although the Lightning Network (LN) has been quite well received, there are some shortcomings:
Larger payments via the LN will probably not be possible in the future. Most so-called payment channels do not have the necessary capital (in Bitcoin or the equivalent in USD) to carry out large transactions via the LN. Currently, only 20 US dollars are deposited in Bitcoin on average. Transactions over five US dollars can often not be carried out.
However, it should be borne in mind that the LN is in the test phase and is explicitly warned against using larger amounts. The bigger problem is the capacity of the LN. The largest ten nodes of the LN represent over fifty percent of the current resources. This could lead to centrality. But even this problem does not have to be permanent. The more users participate in this system, the better the distribution of the LN and the capacity. New clients (clients) can also solve this problem.
New Bitcoin Code Scam
And this is exactly what is happening right now. Blockstream introduced a new Bitcoin Code Scam this week. C-Lightning V 0.6. is a client that meets the needs of the users. By this clearly more customization possibilities are made available, which can lead to an improved distribution and acceptance.
Light Nodes (“light knots”) are a new function, which facilitate the mechanism of the LN clearly. And that’s what counts: Easier operability and user-friendliness. In addition, there is an integrated wallet for on- and off-chain transactions. This extra was also required and the Bitcoin community was listened to here as well.
Basically, it can be said that the technology will improve significantly in the future so that the average user can also benefit from this technology. Decentralized protocols take time and prefer a mature system to an overhasty unfinished product.