The Bitcoin layer 2 scalability solution, Lightning Network, despite being in its formative stage has gained massive traction, especially in 2019. Hodlonaut’s LN Torch initiative contributed immensely to this popularity, unifying Bitcoin proponents from across the world, while also prompting skeptics to explore the technology.
The latest one to adopt the LN solution is Hodl Hodl, a multi-sig P2P Bitcoin exchange which announced the integration of the technology on its platform via a recent Whatbitcoindid podcast.
A team member, while realizing the necessity of accommodating user interest and providing a solution to Bitcoin [BTC] transaction fees shooting up, cited that a user would not want to pay more for low transaction volumes.
The developers further stated that users were required to execute two transactions, one to lock the escrow and the other to unlock the escrow for the buyer, which in turn, would double up the transaction fees. Terming it a very “interesting technology”, the developers said that in order for the second layer solution to succeed, firms would have to try out new and untested technologies. According to the developers of Hodl Hodl, for LN to succeed, it needs some amount of liquidity and the exchange platform plans on providing that.
The developer stated,
“..we are exploring lightning and ultimately the market is going to decide what we’re going to see we’re going to see whether the price for lightning Network offers is going to be the same as for on chain Bitcoin offers”.
Previously, Tadge Dryja, the co-author of the Lightning Network Whitepaper had stated that support from leading cryptocurrency exchanges like Coinbase, Gemini, Kraken would accelerate adoption in the industry.
However, many smaller platforms have extended support for the network by leveraging the Lightning Network. One such crypto exchange was the non-custodial Boltz, which went live last week. Sparkswap, a Beta exchange platform also integrated the layer 2 Bitcoin scalability solution to its protocol.
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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.