Segregated Witness and the Lightning Network are two essential tools for the future of Bitcoin. Both upgrades provide a significant improvement on traditional Bitcoin transactions, yet their usage remains somewhat low. Despite noting slid growth recently, it seems a renewed push may prove necessary.
Segregated Witness Adoption Needs To Improve
Ever since the Bitcoin miners successfully activated Segregated Witness on the network, there has been a delay in making it the default way of conducting transactions. Several years later, that situation remains virtually unchanged for reasons unknown. many exchanges and trading platforms have yet to integrate SegWit at this stage, even though there is no reason to keep delaying indefinitely.
Statistics by TXStats confirm there is still much room for progress. Over the past 30 days, between 55% and 60% of all Bitcoin transactions made use of Segregated Witness. This level has not changed all that much in the past year or so. Without making it the default solution across exchanged and wallet services, things will not improve either.
However, what is rather interesting is how between 55% and 65% of all transaction fees come from SegWit transactions these days. It confirms users rely on Segregated Witness for their own transactions. A good sign of improving this technology’s overall adoption, yet there is still a long way to go. After all, under 55% of the network volume comes from SegWit transactions today.
Going one step further, the network’s block space is primarily dedicated to Segregated Witness transactions. More specifically, an average of 53% of transactions per block is sent via SegWit, which is a decent enough start. Pushing this rate to 100%, however, will require a very drastic change. Who or what will drive that change remains unclear.
Lightning Network Adoption Is Rising
The activation of the Lightning Network relied on ensuring Segregated Witness would be accepted by the network. As both technologies exist side-by-side today, it seems as if more users are interested in the Lightning Network itself. A healthy sign for the Bitcoin industry, yet there is much more to be done.
Over the past month, there have been healthy increases for LN nodes, channels, and the overall network capacity. There are over 17.540 LN nodes on the network today, making the Lightning Network easier to use. Increasing accessibility is a crucial first step toward achieving broader adoption of this technology. Combined with the near 3% increase in payment channels, these statistics look rather promising.
In the end, it all comes down to Lightning Network capacity. For Bitcoin, there is a capacity of just over 1,138 BTC, or $64.1 million. It represents an increase of 6%, but the numbers are rather disappointing when comparing it to Bitcoin’s total liquidity. One would expect much better statistics as interest in Bitcoin grows, but alas, that is not the case just yet.