0
📰 News
137 views

Bitcoin Lightning Network’s Half Capacity Provided by One Person, Decentralization Threatened

Buy Bitcoin with Credit Card
Sponsored by
  • Alex Dovbnya
    📰 News

    Bitcoin’s decentralization is under risk as the Lightning Network’s monopoly continues to grow

Bitcoin Lightning Network’s Half Capacity Provided by One Person, Decentralization Threatened
Cover image via u.today

Decentralization is commonly known to be Bitcoin’s biggest advantage, but there are grave concerns over the recent news about one single node being responsible for the 216 percent increase in the Bitcoin Lightning network's capacity. On top of that, statistical data provided by 1ml.com shows that this exact node comprises 49 percent of the network which absolutely goes against the principles of decentralization. The name of the person who owns this nod is Andreas Brekken.
 


Who is Andreas Brekken?

Andreas Brekken is one of crypto pioneers who jumped on the trend back in 2011. Once being a critic of off-chain scaling, he’s now in full control of the largest lightning network node. For comparison, the second biggest node comprises only about one percent of network’s capacity. Some users have already expressed their dissatisfaction on Twitter.  

 


What is Lightning Network?

The Lightning Network (LN) was initially created to solve the problem of scalability (thus, significantly accelerating the speed of relatively slow Bitcoin transactions). It offers a scaling solution by establishing an additional payment channel outside of the Blockchain. Once the transaction between two parties is completed, the channel gets closed and the current balance is recorded on the Blockchain.    

card

Why all the fuss?

Many crypto enthusiasts fear that the sudden rise of LN will lead to an inevitable centralization of Bitcoin. The lightning network will indeed support much faster transactions, but the fact that there are only few nodes will simply turn it into the current banking system instead of revolutionizing the world of finances. In addition, some individuals fear that using fast LN hubs will come with higher fees.  

card

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings