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Bitcoin, Cryptocurrency, Featured

Tether’s Lightning Network Adoption To Speed Up Bitcoin’s Mainstream Transactions

A lightning network is a second-layer technology applied to Bitcoin to expand its capacity to facilitate swifter transactions by using micropayment channels. It uses micropayments channels to enhance blockchain’s ability to conduct Bitcoin transactions with greater efficiency. 

Defining the Lightning Network

It is a “layer 2” protocol layered over blockchain-based cryptocurrencies such as Bitcoin and litecoin. Scalability is a huge hindrance that limits the broad reception of digital currencies. Whenever scaled appropriately, a blockchain organization can deal with millions to billions of transactions. It comes with low charges by executing and settling off-chain. The protocol takes into consideration micropayments that can enable simple crypto uses like buying coffee. It accelerates the processing timeframe and diminishes the energy costs of Bitcoin’s blockchain.

Also Read: Crypto News: Bitcoin Soars, Ether Scales All-Time High.

Origin of the Lightning Network

The Lightning Network was the brainchild of two crypto researchers back in 2015. Thaddeus Dryja and Joseph Poon first coined it in the paper called “The Bitcoin Lightning Network”. They based their research on the past ideas of payment channels conveyed by Satoshi Nakamoto, the unknown maker of Bitcoin. Bitcoin main net first used in a beta release by Lightning Labs in 2018. As opposed to transactions carried directly on a Bitcoin blockchain (i.e., on-chain), these transactions are faster, cheaper, and easier to confirm. 

As part of the latest venture, Lightning Network’s speed will combine itself with an open peer-to-peer platform to facilitate hyperbitcoinization. Independent financial platforms can utilize it, launched by Synonym Software Ltd., a company affiliated with Tether. Synonym’s first protocol is Slashtags. It is a technology that offers interoperability for privatized networks that do not rely on blockchains for consensus, privacy, or coordination, and otherwise.

Also Read: The Best Crypto Business Ideas in 2021.

In Conclusion

Bitcoin is now dominating the crypto industry by crossing the $69,000 price mark. Industry sources reported that Lightning Network nodes have increased over 128% in the past 12 months. It enables one on one payments. With the recent Taproot upgrade and the Lightning Network nodes, Bitcoin is likely to continue reaching new heights revolutionizing finance altogether. 

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