SNEAK PEEK
- Lightning Network processes millions of transactions per second, surpassing Visa.
- Lightning Network has the potential to revolutionize transaction speeds for other cryptos.
- The report acknowledges certain limitations of the Lightning Network.
MicroStrategy’s executive chairman and former CEO, Michael Saylor, recently highlighted a significant report by Banco Santander, Spain’s largest bank, regarding the Lightning Network’s capabilities. The report suggests that the Lightning Network, a layer built atop the Bitcoin Network, has the potential to process millions of transactions per second, surpassing traditional card payment networks like Visa by a factor of 100.
Banco Santander further delves into the transformative power of this technology in its DigitalAssets101 series, exploring its fundamentals, benefits, and broader implications.
Curious about the groundbreaking phenomenon of #Bitcoin? ?✨ ??
We delve deeper into this world on our #DigitalAssets101 series, breaking down the fundamentals, benefits, and implications of this transformative technology. ??
— Santander (@bancosantander) June 9, 2023
Banco Santander’s report acknowledges the Lightning Network’s potential to revolutionize transaction speeds for Bitcoin, other cryptocurrencies, and potentially even fiat currency payments. The Lightning Network, which facilitates instant and cost-effective Bitcoin payments, is estimated to handle over a million transactions per second. In comparison, traditional card payment networks like Visa currently manage around 20,000 transactions per second.
The report also highlights the increasing adoption of the Lightning Network by both traditional and tech-savvy companies. Well-known brands like Walmart have embraced this payment system, recognizing its efficiency and potential. Additionally, examples at the state level, such as El Salvador, where citizens can now utilize the Lightning Network for remittances, further showcase its growing prominence.
While the report lauds the Lightning Network’s scalability solution, it acknowledges certain limitations. Notably, the network’s creators caution against its use for large-value transactions. However, Banco Santander emphasizes that the Lightning Network eliminates the need for third-party custodial services, mitigating associated risks.