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Technological Advancements:
- Taproot Assets Integration:
- The integration of Taproot Assets on the mainnet has been a significant milestone. It supports on-chain functionality with Lightning support anticipated soon. This integration is aimed at transforming Bitcoin into a multi-asset network in a scalable manner while upholding Bitcoin's core values.
- Companies like UXUY are actively building a transaction layer based on the Lightning Network to promote crypto equality through transactions.
- Taproot Assets Integration:
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Increased Adoption:
- Growth in Usage and Capacity:
- There's been a substantial growth in products, users, and the amount of Bitcoin sent on the LN, notwithstanding a decrease in Bitcoin price below $20,000. The capacity of the network's nodes to handle BTC transactions reached a new all-time high, now accommodating 5630 BTC, equivalent to $170 million.
- Geographic Expansion:
- The LN has seen formal integration in territories like El Salvador and Lugano, and is growing as a peer-to-peer payment method from Mediterranean cities to Senegal.
- Protocol and Wallet Integration:
- Integration with the Nostr protocol has been beneficial, enabling users to send satoshis to each other. There's been a proliferation of both custodial and non-custodial LN wallets enhancing user experience and adoption.
- Growth in Usage and Capacity:
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Emerging Challenges:
- Complexity of Running a Node:
- Despite advancements, running a Lightning node remains a challenge. Some individuals find the task daunting due to the required upkeep and connection maintenance, likening it to a part-time job.
- Custodial Wallet Reliance:
- The ease of use of custodial solutions like Wallet of Satoshi tempts many to sideline the "not your keys, not your coins" mantra, which could potentially erode privacy and present risks if users are not fully aware of the implications.
- Complexity of Running a Node:
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Market Perception:
- The LN is humorously referred to as "Bitcoin on steroids" due to its fast, cheap transaction capability, which is especially suited for small, daily transactions. It's seen as a more private alternative to mainstream payment methods like Google Pay or credit cards, though some believe it's not yet addressing profound market problems.
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