As I read more and more and fall deeper into the BTC rabbit hole, I'm trying to understand where we are right now regarding transaction capabilities and why we will see a huge need for the lightning protocol very soon.
As it stands, the BTC network can support about seven transactions a second maximum(...maybe?) The data states that it could be 3.5 to 7 transactions per second.
If we take 7*60*60*24*365, we come to a 220,752,000 cap on the number of BTC transactions yearly.
The amount above may seem sufficient, but on April 7th, we recorded 355,051 transactions. So if we take 355,051 and multiply that by the number of days in a year, we're looking at roughly 129,586,315 transactions for this year.
Looking at transaction amount compound growth by year has been untenable, and we've been hyperbolic and now seem to be growing at about 31 percent transaction growth per year. Next year we could get to 168,586,315. THIS MEANS IN 2025, we will hit 219,162,210 transactions. This leaves us with 1,589,790 transactions in our allowance, meaning more is needed to sustain unprecedented growth.
I understand that this is not linear by any stretch of the imagination. But approximately, we would incorporate the lightning protocol and use it as necessary to facilitate faster and faster transaction speeds FOR SMALL TRANSACTIONS.
As it stands, the BTC network is a range of about 1% to 1.5% per transaction. Daily transaction averages are also good at calculating average purchase or transaction price. My theory is that as time passes, BTC transaction fees will increase in moderate dollar amounts as more enormous transfers occur to settle sizeable base money transfers from larger entities.
\\ Increasingly, it's looking like BTC could be a treasuryβjust yesterday, U.S Treasury Volume in terms of the number of transactions was 251,443
The big trick will be compensation for channel owners within the lightning network. As it stands, the minimum fee will be one satoshi. However, the maximum price is free for individuals to set. It will be interesting to see how transaction fees become commoditized. Only time will tell sufficient fee structures that make sense for lightning transactions to charge.
I'm willing to pay 1.5% on lightning right now, but the fee should commoditize as time progresses.
TLDR: Lightning is an increasing necessity if we continue growing, so I'm going balls-deep into lightning.
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