- The number of public nodes on the Bitcoin Network grew by 14% in Q3 2022.
- That growth coincided with a 24% uptick in the Lightning Network's channel count.
- These growths point to a positive future for the BTC ecosystem.
Bitcoin's public nodes play an essential role in keeping the Bitcoin (BTC)network running smoothly. They act as witnesses to BTC transactions and help ensure the blockchain stays secure. According to a CryptoMonday.de report, the number of public nodes on the Bitcoin network grew by 14% in Q3 2022 YoY.
This growth is a positive sign for the Bitcoin network as nodes are its lifeblood. It indicates that more people are interested in participating in the network's operations. Ultimately, this should help to keep the Bitcoin network secure and reliable.CryptoMonday's CEO Jonathan Merry
Lightning Channels Have Surged 24%
The growth in the public nodes also coincided with a 24% uptick in the Lightning Network (LN) channel count. The LN is a second-layer payment protocol that operates on the Bitcoin blockchain. It is designed to enable fast, affordable and scalable payments.
This expansion of the LN channels indicates that it is becoming more popular for financial payments than simply as a hobbyist network. That's good news for BTC, as it could help increase Bitcoin's usage and adoption as a payment method.
LN has defied the general crypto market downturn to maintain a bull run over the past year. Network activity tends to drop with a fall in crypto prices, but LN has steadily held its own despite BTC shedding 57% of its value over the past year.
This disconnect is likely due to LN's design as a payments protocol, which makes it immune to forces affecting BTC price. Instead, LN activity is driven by real-world usage, which has continued to grow despite the bear market. This suggests that its adoption isn't dependent on BTC's price and that it may have a bright future despite BTC's volatility.
Nodes are an Essential Component of The Bitcoin Network
Bitcoin nodes are essential to the BTC network for several reasons. First, they contribute to its security by continuously monitoring the blockchain and its complete transaction history. This way, they help to prevent any illegitimate transactions such as double-spending.
Secondly, Bitcoin nodes help to ensure that all transactions adhere to consensus rules. If any transaction violates these rules, the nodes would reject it and block its publication on the blockchain. This move helps to keep the Bitcoin network running smoothly and ensures that all transactions are legitimate.
Finally, Bitcoin nodes also help to keep the Bitcoin network decentralized by providing everyone with a copy of the blockchain. Anyone can run these nodes, meaning there is no single point of failure for the network. This feat is one of the critical aspects that makes Bitcoin so secure and immutable.