The number of users who can use Lightning Network to pay in September increased by more than 100 times compared with August.
Recommended reading: ” Twitter launches Bitcoin reward function, the classical L2 Lightning Network revives? 》
Original title: “Research Survey: The number of users who can use the Lightning Network has increased by 11,164% in one month”
Written by: Arcane Research
Compiler: Baize Research Institute
The adoption of Bitcoin in El Salvador, Twitter enabling Bitcoin to pay tips through the Lightning Network, and Paxful’s integration with the Lightning Network, all of these factors drove user adoption and payment activity in the Lightning Network in September.
The amount of payments on the Lightning Network doubled in September, while the Bitcoin capacity on the Lightning Network only increased by 26%.
The number of users who can use lightning payment increased by 11,164% to 9.7 million in September, compared with 87,000 in August.
Lightning network usage for personal transfers (including merchant payments and gift cards) increased by 122% in one month, while online services increased by 65%.
Arcane Research yesterday released a 60-page report on the state of the Lightning Network to evaluate the Lightning Network layer of Bitcoin internally. This report covers channel capacity, wallet payment volume, daily use and capital flow capacity. With a better understanding of how the Lightning Network is changing the global payment industry, readers may be able to paint a picture of the world’s possible direction.
Picture: Visa transaction volume per second and Bitcoin on-chain transaction volume per second compared to Lightning Network
The Bitcoin capacity in the Lightning Network has just crossed an important milestone, surpassing the 3,000 Bitcoin mark. However, the report believes that public indicators such as lightning network capacity do not show the true extent of usage growth. Instead, Arcane uses Lightning Wallet payment volume to measure the adoption rate, which far exceeds the total Bitcoin capacity in the channel.
In September, when El Salvador officially listed Bitcoin as legal tender, Paxful integrated the Lightning Network, and Twitter enabled Bitcoin tipping through the Lightning Network, the payment volume almost doubled, while the Bitcoin capacity in the Lightning Network increased by only 26%. .
Picture: Lightning network wallet payment volume (USD) growth and public capacity (BTC) growth.
Arcane’s research shows that as more and more users use the Lightning Network, its usage has shifted to typical daily usage, such as physical merchant payments and gift cards.
Picture: Comparison of the number of users who can use lightning payment in August and September
Picture: Lightning payment and personal transfer transaction volume from wallet users
As the Lightning Network passes the adoption test in El Salvador, other countries may follow this approach. Compared with the unstable banking system and the over-inflated national currency, the obvious advantages of Bitcoin and the Lightning Network will prompt the country or the people to adopt it.
Therefore, the adoption of the Lightning Network may show a significant parabolic development within this decade.
Picture: By 2030, possible scenarios for lightning use in household spending and remittance payments in other banking services and dollarized countries
The Lightning Network may also change the way existing payment services are provided. It supports micropayments, as shown by the gaming industry, which may use the Lightning Network as a payment channel more frequently.
Game rewards and revenue accounted for only US$4,000 of Lightning Network transaction volume in August. Although the total amount is small, it was achieved in 189,000 payments —the average transaction size was US$0.02. No other payment system can allow such small transactions to be settled immediately without counterparty risk.
Picture: Lightning Wallet Statistics-Distribution of Incoming Transactions (August 2021)
By enabling final micropayments, the Lightning Network will allow people to “help” content and creators they like. In fact, this has already happened today. Blogging services like Sphynx Chat enable listeners to enjoy their favorite shows while also providing a service for host broadcasters.
“Why can’t you pay for every minute you listen to music or every second you watch movies? If you can pay directly from the Lightning Network wallet without revealing any of your information, why should you provide personal credit cards to these content service platforms? Details?” said the report.
Lightning has the potential to revolutionize the content industry like the Internet in the early 2000s.
Picture: The number of global users of certain services that Lightning can be an alternative payment method
As users begin to use Bitcoin to pay for their games, video, and audio content through the Lightning Network, layer 2 solutions may experience a dramatic increase in users and payments throughout the decade.
Picture: Game, video and audio service users who use lightning payment
“Based on a conservative estimate of 1 hour of use of these services per day, and an average of 25% of the time spent using lightning payment services, our estimate is equivalent to no less than 364 trillion lightning transactions per year by 2030,” the report said .
This may sound absurd, but the report continues: “Many people were skeptical in the early days about the Internet and how it was used to transfer files, emails, audio, and other content. These technical challenges were solved faster than many people expected. Be fast. Today, 5 billion people use the Internet, we send more than 60 billion WhatsApp messages every day, and we are expected to send 376 billion emails every day by 2025.”
Similar to the Internet, Bitcoin has the power and potential to disrupt many industries and human habits; however, all of this has to do with money.
The report said: “Bitcoin and Lightning Network are also based on open source protocols and software, just like the Internet. With innovations and contributions from all over the world, it is more likely to create another Internet story.”
The Lightning Network may have just begun to touch on the infinite possibilities and creativity that Bitcoin will have in society.
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