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NiceHash has announced integration with the Lightning network, which will increase the number of transactions and reduce the cost.
CEO of NiceHash, Vladimir Hozjan, highlighted the decision to add Lightning Network payment options. He said that customers have very well received the update and are happy with it.
He stated, “A few weeks after the introduction of Lightning payments, it is clear that our users appreciate this feature. We are proud to be one of the main supporters of the network, both in terms of operational nodes, and now in terms of usage. Lightning is very well suited for making small and regular payments, and in the future we will promote its adoption even more.”
NiceHash is one of the largest and most renowned online markets for hashpower for Bitcoin mining. It had recently decided to give its customers the opportunity to withdraw their rewards earned through mining activities via the Lightning Network.
Thousands of Layer-2 processed transactions and hundreds of new lightning addresses were recorded in less than a month.
Integration Of Bitcoin Lightning Payment Channels & NiceHash
On March 7, NiceHash, the popular hashpower marketplace of the Bitcoin network, announced that it had successfully introduced Lightning Network payment channels within its service dedicated to miners.
NiceHash now has support for #Lightning Address, a user-friendly way to send and receive #Bitcoin, similar to email, enhancing the Lightning Network's ease and accessibility.
— NiceHash (@NiceHashMining) March 7, 2024
This new feature streamlines transactions, offering a revolutionary approach to $BTC transfers and… pic.twitter.com/gGaMJg1rSG
It has allowed NiceHash to make the most of the proceeds from the sale of computing power, as users are no longer required to cash out through the main Bitcoin network. It pays fees on the basis of an average cost of $5.72 per transaction, according to data released on the platform.
In contrast, lightning payments are extremely cheap, with fees ranging in the order of magnitude of a few cents and with very shorter waiting times.
NiceHash users have very happily received the integration of this technology. NiceHash users, on average, have processed approximately 1,800 weekly payments under the layer-2 of Bitcoin.
Moreover, since March 7, over 700 lightning addresses have been created and around 1,136 deposits have also been made. It demonstrates the appreciation and interests of the customers for the added features of the platform.
After the addition of the Nicehash node, more than 350,000 Lightning transactions have already been processed, with a tremendous transaction volume of over 1,500 BTC.
It is important to make a note of how the introduction of the Lightning Network has encouraged small miners to move their earnings more frequently. It has an estimated weekly average of approximately 2x the transactions that used to execute before the update.
Popularity and Recognition of the NiceHash Hashpower Marketplace
After the success of the experiment, NiceHash has announced that, in the future, it will enable an option that will enable merchants to accept Bitcoin via lightning, aiming to onboard the next billion small users.
Initially, questions were raised about the experience and advanced knowledge of the technology but NiceHash is one of the first supporters of the Lightning Network, which has more than 1,250 active channels and a capacity of over 180 BTC. It makes it a black bag for exploring the mass adoption of Bitcoin outside the context of mining.
NiceHash has reminded less experienced users that it is the hub of online hashpower selling activity, with many small home miners using the service to distribute and divide the block rewards with other similar miners who have selected a less profitable choice of solo mining. NiceHash has been active since 2014 and had a total Bitcoin network hashrate share of 2.2%. It has a global ranking of three based on its performance, driven by its strong connection with peers.
The service has become so famous that it supports more than 250,000 active miners every day and more than 1 Million users in over 190 different countries.
As per the data released by The Block, it has a hashpower share of 1TH/s was priced at 0.11 dollars on the market. In December 2017, during the Bitcoin bull run, the same amount of computing power cost about 3.50 dollars.
Conclusion: State Of The Layer-2 Lightning Network
The main Layer-2 infrastructure, the Lightning Network, is expanding continuously and gaining popularity. Despite this, it is facing challenges to engage as a widespread technology for the masses.
They have now entered a phase of stagnation after experiencing great community efforts that led to growth from 2019 to 2023. The appreciation of the currency has led to growth in the dollar value of the network’s capacity in recent months.
Since March 2022, the net number of P2P channels has been decreasing, which has led to a reduction of approximately 30,000 connections. If this trend does not revert soon, the price of BTC is expected to encounter a bear market. The possibility of hosting expensive transactions on the network will decrease significantly.
FAQs
What is NiceHash?
It is the largest hash power broker marketplace that facilitates the interaction of sellers or miners of hash power, with buyers.
What is hash power?
It is a computational resource that describes the power that a customer’s computer or hardware uses to run and solve different cryptocurrency problems.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
