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Bitcoin Transaction Fees Hit Three-Year Low as Lightning Network, SegWit Helps In Scaling

BitInfoCharts, the BTC network has been processing between 200,000 and 250,000 transactions per day. However, technological developments like Segregated Witness (SegWit), introduced in August 2017, allow for more transactions to be processed, as their size is decreased by segregating a large chunk of data that was, before the upgrade, contained within each transaction.

The Lightning Network (LN), bitcoin’s layer-two scaling solution, has also been helping it scale, as 1ML data shows its total capacity is of over 557 BTC ($2.26 million), and that it now has over 5,150 nodes and over 18,500 open payment channels. While LN transactions aren’t processed directly on the blockchain, this second-layer protocol helps decrease the number of transactions being made on-chain.

Upon its launch, the layer-two scaling solution wasn’t user-friendly, and as such, its adoption has been growing at a slow, steady pace. As new, more user-friendly solutions are created, some believe its true potential will be achieved. Recently, developers have reportedly created a Lightning Network BTC wallet that’s said to be extremely easy to use.

Read more: A Recent ICORating Ranks Kraken, Cobinhood and Poloniex Safest Crypto Exchanges

 

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