U.S leading investment bank Morgan Stanley claims that the Bitcoin Lightning Network is more efficient for making small payments than debit cards. The statement of the investment bank came in on Thursday, following the recent adoption of the Lightning Network by some top brands in the United States.
The Lightning Network is a layer two scaling solution for the Bitcoin network. Transactions are completed within seconds, and many transactions can be processed at a go.
Before the development of the lightning network, Bitcoin users had to deal with slow transaction execution due to the high number of users of the blockchain.
The lightning network has a theoretical throughput of 1 million transactions per second. On the other hand, Visa can process up to 1,700 transactions every second. Visa claims its throughput can be scaled to 24,000 transactions every second.
Like Visa, MasterCard uses a network that can handle up to 5000 transactions every second.
Despite these impressive figures, the lightning network is still miles ahead of Visa and MasterCard combined.
The lightning network also allows users to transact at a low rate. Lightning users enjoy “lightning speed” while paying fees of next to nothing.
Lightning Network Becomes More Popular
The lightning network is quickly gaining popularity due to its transaction throughput. Kraken exchange recently integrated lightning to make Bitcoin transfer faster and cheaper for its users.
U.S payment company Strike will also use the lightning network to process payments. This move means that more retail stores and restaurants in the United States will begin to accept Bitcoin as payment.
Morgan Stanley also believes that more real-life brands will continue to look into the metaverse, and there will be a growing need to accept Bitcoin and other cryptocurrencies as payment.