Home
News
Bitcoin Lightning Network has been used for transactions and payment activities, but its Liquidity seems to face challenges as per experts.
In an opinion editorial by a Bitcoin space educator and host of Bitcoin podcast, Shinobi has explained that to solve the problem that faced during funds receiving from nodes of someone else without secured liquidity, needs changed on protocol level.
Recently it’s been a popular thing, according to Shinobi, to ignore the problems that Lighting Network is facing and the protocol stacks. Bitcoin Lightning Network is currently the most adopted, the fastest moving and most used second layer of bitcoin network in terms of development further. Although the Bitcoin Lightning network has its own deficiencies that sweep under the rug easily and its work around considering that it is currently small in scale and it is at the very initial stage of adoption.
However, avoiding or hiding the problem itself won’t make the problems either get solved or away, not even the reality is going to change while at a much larger scale and further the adoption curve of those problems become among the real ones that actually require scalable solutions. One among other problems with the Lightning network is at its core which is the issues it faces in receiving liquidity.
Detailing the issue it came to know that it is not possible with the Bitcoin Lightning Network to receive any funds over it without securing the liquidity from node of someone else. This is quite a primary yet unavoidable shortcoming of the network that could turn out to be a limitation of the Bitcoin Lightning Network.
ALSO READ – Long Term Holders Strengthening Ethereum As Per A Research Organization
However using the methods like default LNDHub of Blluewallet or Wallet of Satoshi, a hack around the problem could be formed but this would happen only because there is someone else who has solved it and the person himself is not actually having control in his hands. While dealing with these self custodial things, there are chances to address the problem actually.
At the time of launch of Bitcoin Lightning Network and it went live, this issue got raised but was addressed very informally then. It becomes essential to solve it through social connections by helping each other out with this. Since there were no marketplaces back then, no such services to use to deal with the problem, it was just users who could send liquidity to each other.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
