Bitcoin’s second layer payment protocol Lightning Network has been expanding unnoticed by most users. First proposed in 2015 and launched in 2018 as a beta, its adoption and capacity have accelerated during the past few months.
The Lightning Network allows users to send fast and low-cost transactions via payment channels. Unlike the Bitcoin-based layer, lightning transactions are processed “off-chain” via a mechanism called gossip and probing that enables nodes can follow possible transaction routes.
Arcane Research published a recent report wondering if this Bitcoin-based network will have a similar momentum as decentralized financed in July 2021, during the “DeFi Summer”. A mania broke out during this period and seemingly everyone started to interest in DeFi dApps.