The Lightning Network Empowers Small-Scale Bitcoin Miners
Momentum around Bitcoin (BTC) continues to build as the Halving Event quickly approaches, and the Lightning Network is playing an important role in supporting small-scale miners. Bitcoin miners, in particular, have been paying close attention to how this year’s halving may impact operations.
For instance, as mining rewards decrease due to the halving, miner efficiency has become more important. As a result, large-scale miners have been seeking energy-efficient ways to carry out operations.
The Impact of the Halving on Small-Scale Miners
The halving will also impact small-scale miners. Jesse Shrader, Co-Founder and CEO of Amboss, told Cryptonews that Bitcoin mining pools, particularly, will receive fewer Bitcoins due to the halving. Shrader added that rising transaction fees will create additional challenges.
“In order to provide miner payouts, third-party mining pools will have to pay increasing transaction fees,” said Shrader. “This means that all miners participating in pools will likely have to reach at least .1 BTC before receiving a payout.”
The Lightning Network Helps Small-Scale Miners
Shrader believes miners supporting the Lightning Network (LN) can combat the abovementioned challenges.
The LN is a layer-2 solution for the Bitcoin blockchain. It leverages payment channels, enabling peer-to-peer payments between two parties outside of the expensive main Bitcoin blockchain.
Once established, LN channels allow transacting parties to send an unlimited number of nearly instant transactions, which are also much less expensive than transactions made on the Bitcoin blockchain.
Small-Scale Miners Add Support For Lighting Network Pre-Halving
Indeed, it appears logical for small-scale mining pools to use LN for payouts.
“NiceHash, for example, has already been using LN for this,” said Shrader.
More Small-Scale Miners Implement LN
Kristian Csepcsar, CMO at Braiins – a leading mining pool in the Bitcoin industry – told Cryptonews that The Lighting Network was also just implemented into the Braiins Pool platform.
Challenges May Hamper Lightning Network’s Adoption
While it’s notable that the Lightning Network is being used by more small-scale miners, challenges remain.
Austin Mitchell, Co-founder and CEO at energy company Synota, told that the biggest challenge with using The Lightning Network is adoption.
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