Cryptocurrency

Ethereum-Dapps now hold six times more Bitcoin than the Lightning Network – Coin Update

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A only a few weeks old Dapp is on the verge of overtaking the Lightning Network, Bitcoin deposits.

Along with another not long available Dapp, the two now hold more than six times the amount of Bitcoin deposited on the bitcoin own Lightning Network (LN).

RenBTC, just this month put into operation, has experienced a significant jump in the amount of deposited Bitcoins up and down, as the people between the Ether Blockchain and the Bitcoin Blockchain back and forth, currently it is at about 730 BTC.

Ren tokenized Bitcoins on Ethereum, June 2020

The Bitcoin address of renBTC currently says that you have receive a total of 300,000 Bitcoins, however, it is most probably a faulty display.

Perhaps a glimpse into the future, but in the presence of the Lightning Network (LN) holds only 950 Bitcoins.

And had promised two years after its launch, and four years after the Bitcoiners, that the Lightning Network would solve the entire scalability problem.

You may have been right that a Second Layer can increase the capacity of Bitcoin – but this Second Layer begins more and more to the Ether to look – and not according to the Lightning Network.

WBTC-brands at Eth are momentarily 6,000 of Bitcoins, June 2020

The Defi-consortium managed wBTC-Token has always had more jumps in the height of the deposited Bitcoins, and now reaching $ 50 million.

Due to the contract-based scaling methods on Ethereum, most of which were only a few weeks ago introduced, tokens can have a lot more capacity for the processing, provided this is done within the same Contract network.

This is basically the same idea as LN, but the Innovation in ETH through the use of zk-tech and other methods has made this contract-based scaling, in some cases, a child’s game when it comes to end-user, because there are no channels and no liquidity provision, and no guard towers.

You just have to put ETH behind, then the account is within the Treaty and, finally, on-chain settled, where, for example, of 2,000 transactions in only one of the ETH Blockchain-transactions are grouped together.

The Blockchain capacity, however, may be the least of the attractiveness of ETH for Bitcoiners, the pass more to set at DeFi-Dapps.

As you can see in the figure, is to take the Trading volumes – an Experiment that could eventually disrupt even the Wall Street.

This is because the borrowing, lending, asset management and other financial activities for Bitcoin, ETH, or other Token and assets without the involvement of third parties, are carried out with the exception of the code of conduct contract.

People would no longer need to make 100 billion dollars in profits per year to only four banks, so that in this new financial system may be more income could be made than to the old market, since these billions are instead given by higher interest rates for lending, or lower borrowing to users of the Dapp.

As a result, the Lightning Network is irrelevant. And with the speed with which things are moving, it might soon history – while some of the questions, whether Ethereum could not start even, the Bitcoin Blockchain itself less relevant.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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