The Lightning Network is turning out to be a let down, in solving Bitcoin?s (BTC) long-running scalability issues. The solution has been growing in popularity in the recent past even though it comes with a deficiency that seems to affect its efficiency.
Lightning network Success Rate
The technology has proved to be reliable for processing micro-transactions in tests carried out so far. However, it appears to be struggling when it comes to processing transactions involving huge chunks of money. According to research firm Diar, Lightning Network can only process transactions of up to three cents with excellent levels of efficiency.
The research firm found a 50% chance of a transaction falling through when transferring a sum larger than $5. The failure rate is even higher when transferring large sums of money. A 1% success rate when sending $490, which is the maximum amount of money that can be carried into the network, all but raises serious concerns about the technology.
The fact that Lightning Network is yet to improve system efficiency is a deficiency that continues to plague bitcoin blockchain, which is hoping to be a preferred means of sending money for people. So far, developers have implemented the technology for fun activities online, with the focus being on micro-transactions.
Lightning Network Node Requirements
Lightning Network which acts as a second layer to payments blockchain has a total network capacity of $150,000 crossed in April. The technology was developed with the aim of enabling faster transactions at minimal transactions fees.
For transactions to go through on Lightning Network, everyone involved in a transaction must be online. This includes the person sending money, the recipient as well as the owner of the channel that is being used to send the money. In addition, the channel should have enough money to support the transaction.
The fact that it is hard to meet all the requirements is seen as one of the reasons behind transactions involving large amounts of money falling through.
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