Bitcoin Lightning Network is 1,000x cheaper than Visa and MasterCard: Data

2 years ago

Glassnode information demonstrates that the Lightning Network outcompetes accepted outgo networks successful presumption of committee costs.

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Fresh information from Glassnode demonstrates that Bitcoin's (BTC) Lightning Network is importantly cheaper to usage than bequest outgo networks.

The median interest rate, oregon the outgo of sending worth crossed the Lightning Network, is 0.0029%, 1,000 times cheaper than that of MasterCard of Visa outgo processors.

James Check, pb expert astatine Glassnode, told Cointelegraph that the median interest rate, oregon the interest charged per 1 BTC sent crossed the Lightning Network, is presently 3,000 Satoshis (the smallest portion of Bitcoin). That is “equivalent to $0.84 to nonstop $28,800 worthy of worth [...] which is simply a interest of 0.0029%.”

“Pretty singular erstwhile you deliberation astir it.”

In a station connected the Nostr societal media protocol, Bitcoin expert Dylan LeClair noted that this complaint is galore times little than that charged by large recognition paper companies.

The Lightning Network, a layer-2 payments solution built atop the world’s largest cryptocurrency was archetypal projected arsenic a mode to marque Bitcoin effectual arsenic a outgo method. These information points show that it is not lone accelerated but low-cost, with the mean interest complaint has been steadily trending little since November 2021.

Legacy outgo networks specified arsenic Visa and Mastercard complaint merchants a interest of astir 2-3% per transaction, making them an costly enactment for businesses. In an upcoming Cointelegraph documentary changeable successful Cape Verde, the concern proprietor of 1 of the fewer businesses to judge Bitcoin explained that accepting overseas Visa and Mastercard costs implicit 8%.

Moreover, Glassnode's Check referred to users who tally their ain nodes and negociate their ain channels. Many Lightning users instrumentality vantage of custodial wallets, specified arsenic Wallet of Satoshi and Alby to marque micropayments connected societal media apps specified arsenic Nostr.

Some Bitcoin aboriginal adopters person noted the increasing penchant for custodial solutions (as the Bitcoiner mantra is “not your keys, not your coin”), though semi-custodial solutions specified arsenic Fedi and Cashu could undermine reliance connected afloat custodial solutions.

Furthermore, the throughput of the Lightning Network could beryllium called into question. Check explained:

“Of course, we indispensable besides see that the emblematic transmission is smaller than 1 BTC. The median transmission size is 0.02 BTC and the mean is 0.08 BTC, truthful wide the Lightning Network remains good suited to payments beneath $1,000.”

In the beneath graph, the transmission size is trending higher but inactive good nether $10,000. In specified an environment, payments implicit $1,000 whitethorn beryllium amended suited to the Bitcoin basal concatenation successful bid to debar outgo nonaccomplishment oregon misfire.