Twitter Featured | Analyze the current status of lightning network: nodes can not make ends meet, channel, capacity stagnant growth

01
$125 million policy escort, Mellon Bank provides storage, Bakkt Warehouse opens for business

Bitcoin futures exchange Bakkt said that Bakkt Warehouse is online and Bitcoin, which is stored in Warehouse, will be protected by a $125 million policy.

The hosting of Bakkt Warehouse is also online.

BNY Mellon protects private key files by providing a geographically distributed customer asset store for Bakkt Warehouse.

(Note: New York Mellon has more than $1 trillion in assets under management, ranks among the world's largest asset managers, and is the world's leading asset service provider with more than $18 trillion in escrow and custody assets. Wikipedia)

02

Depth analysis of lightning network operation status: nodes can not make ends meet, channel, capacity stagnant growth

The Block analyst Larry Cermak:

Less than 20 months since the lightning network's autonomous online line, there are now a total of 32,000 channels, 4,800 nodes with active channels, and a total capacity of $8.6 million.

The lightning network node grew the fastest during January-April 2019, which is likely related to the Launcher node launched by @pierra_rochard (personal name, software engineer) and the hardware lightning network node released by Casa, which allows non-technical users to run nodes. It has become easier.

The growth of the lightning network node slowed down after April, but it continues to grow. The number of channels has dropped by 20% since the peak of 40,300 on March 17.

It is also worth mentioning that the average number of channels per node has also experienced a similar decline. In late March, each node has an average of more than 10 channels. Each node now has an average of 6.8 channels, a drop of 32%.

Lightning Network's current capacity is 845btc (about 8.6 million US dollars). In November 2018, capacity increased by 300% in two weeks, which is the fastest growing time. Similarly, in late March 2019, capacity increased by 45% in two weeks, which is the time when growth is greatest.

Lightning network capacity (in btc) was highest at the beginning of March, exceeding 1100 BTC. Lightning Network BTC pricing capacity has dropped by 25% since (the highest point). In dollar terms, as Bitcoin began to rebound, network capacity reached a maximum of $1.23 million in two months. Lightning Network dollar denominated capacity fell by 29% from (the highest point).

The largest single entity, LNBIG, currently has 25 public nodes with a total capacity of 513.7 BTC (approximately $5.2 million). This means that an entity with 25 nodes (all nodes accounting for 0.5%) currently controls nearly 61% of the network capacity.

The people who operated the LNBIG node said in June that they earned 5,000 to 10,000 CBbits per day, and "up to $20 a month" channel fees, they spent more than a thousand dollars to open and close the lightning network channel.

A common criticism of lightning networks is that it leads to the centralization of a few large nodes, which leads to the formation of payment hubs. However, the concentration of capacity is declining.

In June 2018, the largest 10 lightning network nodes accounted for 53% of the total capacity. In January 2019, it accounted for 38%, and now it is 32%. The reliance on large nodes is still obvious, and the low capacity is easily affected by unilateral access.

Since late March, the average capacity of each node has stagnated at 0.027 BTC. In dollar terms, there is a modest increase in the average capacity of each node.

When evaluating a lightning network, it is important to know that the software is still in beta. The recent reduction in channel and capacity is likely due to the current low fee status and the unwillingness of Bitcoin holders to spend their bitcoins.

If the transaction costs on the chain increase, the lightning network may start to grow rapidly. After nearly two years of stress testing, (Lightning Network) seems to have achieved success so far. But it remains to be seen.

03

Analyst: The cottage season is coming soon

Engineer, market analyst CryptoWolf:

Bitcoin and altcoin market cycles.

According to historical data, the bitcoin reversal occurred before the coming of the cottage season.

When the funds flowed to the BTC, the cottage went to death, especially when Bitcoin reversed the rebound.

After the bitcoin is reversed, the BTC enters the trading range.

Only when the cottage begins to keep up with all the trends, the cottage season will come.

(Note: CryptoWolf selected the historical trend of 2015-2016 to compare and analyze the trend of 2019-2020. To read the above, you need to understand the following figure. The main point of this analyst is that during the period of 2015-2016, in Bitcoin At the time of the sharp rebound, the altcoin appeared a sorrow and dying, but after that, it ushered in the bitcoin shock and the coming of the cottage season. The market trend in 2019 is similar, CryptoWolf prediction may appear the same. Market cycle.)

04

Industry news

1. According to CoinDesk, TEDA has released RMB stabilized currency CNHT. According to reports, CNHT will operate as ERC-20 token on Ethereum.

2. According to Cryptoslate, Bitcoin has a premium of $2,250 in Argentina after implementing capital controls in Argentina ($10,000 per person per month).

3. According to Cointelegraph, the decentralized browser Brave ranks more than the main browsers in Japan, including Google Chrome and Firefox.

(Brave is a browser based blockchain technology that allows users to earn BAT revenue through point ads and reward content publishers directly.)

4. According to Cointelegraph, the Star Foundation will work with Keybase on a $120 million airdrop. Keybase will provide 100 million XLMs per month to its users in the next 20 months, accumulating 2 billion XLM (approximately $120 million).

(Note: Keybase is a project of stellar and a16z investment, a key management and chat tool)

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Source: Public Number of wildflowers says: March only hope