Number Of Nodes on Lighting Network Up By over 3% To 10,000

September 27, 2019 / by Crypto.IQ

In the last few weeks, the number of nodes on the Bitcoin Lightning Network has grown by 3.1% to hit 10,000. Although the number of nodes is small compared to the 100,000 nodes of the Bitcoin network, it still represents rapid growth for the Lightning Network.

Lightning Network enabling faster transactions

The Lightning Network is a decentralized scaling solution that enables cheaper and faster transactions relative to the Bitcoin network. 

The nodes of the original Bitcoin platform can only process approximately seven transactions per second. However, the Lightning Network nodes process transactions at an enhanced speed and can process a million transactions per second. The network can process high volumes of micropayments as low as one satoshi. This is one way that Bitcoin will manage to scale and support the growing number of users and transactions per day.

The Lightning Network nodes enable transactions through payment channels and receive a small fee in the process. They are different from the Bitcoin network nodes known as layer one of the blockchain. More nodes on the Bitcoin network do not enhance efficiency. But more nodes are important in helping reinforce the resilience and immutability of the network.

However, for the Lightning Network, the addition of more nodes helps in making the network more efficient. Payments are moved between nodes until it reaches the recipient. So with more nodes, it means there are more links between the nodes, which helps enhance efficient, reliable, and faster payments.

Challenges the Lightning Network is dealing with

The network faced some challenges in the initial stages of development because of lack of enough nodes. Transactions could sometimes fail because of large payments and lack of enough channels to allow completion of the transactions.

Data from 1ML indicates that not everything is growing for the channel as other areas have slowed down. For instance, the number of payment channels over the last month dropped 1.1% to around 36,000. This has made it difficult to complete transactions. Equally, total locked funds in the Lightning Network have declined by 2% to slightly under $7 million. However, this was largely due to the recent slump in the Bitcoin price. Over the past month, the amount of Bitcoins locked in the Lightning Network has been maintained at 830 BTC.