The Lightning Network is a crucial scaling layer for Bitcoin. It can also do wonders for Litecoin, assuming enough people provide capacity for it. So far, that is anything but the case, as overall support remains relatively low.
Lightning Network on Litecoin Today
It is interesting to note that Litecoin activated the Lightning Network prior to Bitcoin. That was not surprising, as Litecoin’s activation of SegWit occurred much earlier as well. Keeping that in mind, one has to consider the current lay of the land where LTC is concerned. Especially for its LN implementation, the current statistics don’t look too promising.
To put this into perspective, there are 342 nodes on Litecoin’s Lightning Network. Nothing impressive, considering how Bitcoin has thousands of nodes today. This alone makes one wonder why Litecoin sees such small support for the LN. One can argue this network doesn’t need it, as Litecoin is faster and cheaper to use than Bitcoin by default.
At the same time, 342 nodes is still a 1.48% increase compared to one week ago. There is a similar increase in LN channels, as those rose by 1.1% to 626. Again, very low numbers compared to Bitcoin. With just 178.8 LTC in overall LN network capacity, things are not looking great. It doesn’t have to be an issue either, but it is still worth paying close attention to.
Last but not least, there are 157 Litecoin LN nodes with active channels. This indicates under 50% of all nodes on this layer have an active channel today. An unusual discrepancy, especially when the overall numbers are already this low. With no real incentive to add more capacity in the near future, it seems unlikely these numbers will improve soon.
More Interesting Statistics
Comparing this to Bitcoin’s LN figures is a moot point, as Litecoin is an entirely different network. However, there are some interesting correlations to take note of. A fair few Bitcoin LN nodes can be accessed over Tor to achieve an extra layer of privacy. For Litecoin, this is possible too, albeit there are only 20 nodes accessible through Tor. That represents roughly 6% of all nodes, which is a decent start, given the current overarching statistics.
Looking closer at the ‘average” figures, some surprising discoveries can be made. Based on the information shared by 1ML, the average Litecoin LN node is 481.6 days old. This shows there was some interest in the Lightning Network a year and a half ago. Very little has changed since, unfortunately, but that is not entirely surprising either. Again, Litecoin’s network is stable, cheap, and fast, thus there is no need for improvements right away.
In the end, the Litecoin Lightning Network has a layer-one capacity ratio of just 0.000213%. This figure is extremely low, but it is somewhat to be expected. One has to wonder if there is a future ahead for the LN on Litecoin’s network. Right now, that answer seems to be “no”, but one never knows what the future may hold.