48% Of All Bitcoin Lightning Nodes Run On Social Sites
According to MemPool Space statistics from August 2, the two biggest centralized cloud service providers Amazon Web Services (AWS) and Google Cloud—host almost 48% of all Btc Lightning Network (LN) Nodes. AWS is used to deploy about 29% of the Bitcoin Lightning Network nodes, while Google Cloud is used to host about 19% of them. This pattern suggests that Btc lightning node operators heavily rely on centralized cloud services. Relying on centralized solutions, as opposed to running a local node, can provide a high level of dependability and reliability that can approach 100%.
Over-Reliance on AWS and Google Cloud?
The network of Bitcoin is made up of nodes run by workers located in every corner of the world. This contrasts with Google Cloud and AWS’s more centralized strategy. Although miner farms and pools predominate, there are plenty of single Bitcoin miners dispersed throughout the world. The fact that the majority of the nodes powering the Lightning Network of Bitcoin are running on Google Cloud Platform and AWS brings to light a problem with the Lightning Network’s design. Although the Lightning Network enables outside of the chain bitcoin transactions through channels, allowing for almost instantaneous settlements and lower costs, node owners must keep a consistent online presence in order to carry out these transactions.
For a transaction to be initiated and the intelligent contracts to update, both parties must be connected to the Lightning Network. If one party doesn’t reply, they risk losing the channel’s cash. To avoid this, a lot of node administrators use standardized cloud resources like Google Cloud Platform and AWS. In order to improve scalability, Google Cloud and the voltage, a Lightning Software as a Services (LaaS) platform, teamed in May 2023. According to a statement from Voltage, the partnership would enable users to set up the digital currency and the phenomenon of lightning nodes spanning a variety of locations by combining the strengths of If the voltage is and Google Cloud.
Ethereum Has More Bitcoin Than Lightning Network
The Bitcoin Lightning Network’s total capacity as of August 2 exceeds $138.4 million in Bitcoin, made possible by a network that consists of more than 15,500 distinct nodes. Although the Lightning Network has been successful in enabling users to transact with immediate settlements without necessarily needing to wait for 10 minutes or more, adoption has been rather limited. For higher returns through decentralized finance (DeFi), additional coins are being designated and transferred to smart contracts systems such as Ethereum or the BNB Chain. According to Dune Analytics data, more Bitcoin has been moved to Ethereum than to Btc Lightning Network nodes that are locked.