Hamster Kombat is a Telegram-based tap-to-earn game where players manage a virtual crypto exchange and earn coins. Its native token, HMSTR, will be released via airdrop on Sep 26, 2024.

's popularity surge has put a spotlight on the tap-to-earn variety of play-to-earn games. Now, another tap-to-earn game based on Telegram — 

 sector. The game allows each player to manage their own virtual crypto exchange, tapping to earn more coins and completing various tasks and activities to boost their earnings. Virtual coins accumulated in the game will soon be claimable, with the project's planned native token, HMSTR, set to launch on Sep 26, 2024. As of Sep 18, 2024, 

 has reportedly amassed an impressive user base of around 300 million players.

 is a hamster-themed play-to-earn game that was launched on March 25, 2024 on Telegram. Its players collect coins simply by tapping on the screen.

 Each tap earns you virtual coins, which can be claimed through the game's planned native token, HMSTR. 60% of the HMSTR supply is set to be released via 

You can easily start playing the game via the 

 telegram channel. Gameplay starts when you assume the role of a cryptocurrency exchange CEO, which is represented by a cute hamster avatar that can be customized with various skins. You’re given a choice of several exchanges to own. After making your selection, you proceed in the game by tapping on the image of the hamster. The tapping increases your virtual assets and in-game rank. There are also other ways to earn coins or boost your position, which we'll touch upon further in the article.

 encourages active and frequent participation. This concept is similar to other games that encourage user action via frequent, high-involvement tapping, clicking or swapping, e.g., 

 has amassed an impressive user base of 300 million players and thus far hasn’t been implicated in any fraudulent activity. It appears to be a legit game, although some users on social media have raised concerns about the lack of an immediate claim mechanism, as well as inconsistencies in some of the asset counters used in the game.

 is just a game for leisure and fun, and users shouldn't treat it as a definite asset accumulation opportunity. The game's legitimacy regarding payouts will become clearer once the HMSTR token is actually launched and users can claim their virtual coins in exchange for the cryptocurrency.

 is akin to another viral Telegram-based game — 

 also operated without a crypto token of its own, and was just a fun pastime, rather than a serious reward accumulation endeavor. In mid-May 2024, 

 finally launched its native token, NOT, which surged over 270% within a month, rising from its initial price of around $0.007 to $0.028 in June. However, it should be noted that 

 has since declined from its ATH of $0.028 and is currently trading at around $0.0077.

's tapping mechanics, the most basic gameplay in 

 simply requires you to tap on the hamster on the screen to earn coins. You can also boost your taps to earn more coins by leveling up boosters, such as 

which increases the number of coins you can earn per tap, and 

. You can also make use of daily boosters like

 for free (up to six times) when you run out of energy to tap.

 app daily, you’re given the opportunity to complete daily tasks and earn additional coin rewards of up to 50 million HMSTR, as well as exclusive skins. In general, these tasks are as simple as playing the game — you only need to tap on the available daily reward to claim coins. 

: Make sure to join the game at least once per day, for up to three weeks, in order to stay eligible for the daily task rewards for each day.

You can also receive additional rewards by completing task lists. Each task in the list earns you more points. Typical tasks involve joining the game's Telegram channel, following 

 or inviting friends to sign up to the platform.

The Daily Combo lets you win a sizeable bonus of 5 million coins each day upon getting the right combination of three specific exchange upgrades, spread across categories like Markets, Legal, PR & Team, Web3 and Specials. The Daily Combo resets daily at 12PM UTC, so you'll have to achieve the correct combination before the UTC day ends. You can attempt a maximum of three combinations per day, with each attempt limited to a certain number of moves. 

s Daily Cipher allows you to win 1 million coins by figuring out the word of the day using Morse code, a system of dots and dashes used to symbolize letters and numbers. After guessing the word of the day, you then have to tap out its Morse code. You can attempt to solve it up to five times per day. The Daily Cipher refreshes every day at 7PM UTC.

 also features 12 games and two mini games. You’re required to log in to the various game apps in order to earn up to four golden keys per game. The mini games are

 requires you to retrieve one golden key from the sliding puzzle of red and green candlebars within a time limit of 30 seconds. Meanwhile, you can earn more coins by sorting and pairing colored hexagon tile stacks on 

 is available exclusively through Telegram. You can search for 

 button to be directed to the game channel. You don't need to pre-purchase any crypto or connect a

 to start in the game — it's free to join and play.

Tips and Strategies to Maximize Your Profits

Tapping on the screen isn't the only (or even most effective) way to maximize your earnings in 

. As highlighted above, there are various ways to play 

. Below are some of the best ways for you to speed up your earnings and boost your profits.

 to earn passive income, even without tapping, by clicking on the 

 button at the bottom of the app to upgrade your exchange across various categories. By selecting the right card combo to upgrade, you can even earn an additional amount of 5 million coins each day from the Daily Combo.

: If you correctly complete both the Daily Combo and Daily Cipher each day, you’ll earn a total of 6 million coins per day. However, the Daily Combo and Daily Cipher aren’t easy to master without some guidance, so Bybit Learn is here to help you. Make sure to check out our daily guides to Daily Combo and Daily Cipher so that you can easily get your hands on 6 million coins each day!

's native token, with a total supply of 100 billion. Of the total supply, 60% is allocated to players via the upcoming 

 airdrop on Sep 26, 2024, with the remaining 40% reserved for providing market liquidity, ecosystem partnerships and grants, rewards for squads and more.

Bullish on this tap-to-earn token? Now you can be one of the early birds to get your hands on HMSTR — even before next week’s 

 has been running since Jul 8, 2024, 10AM UTC, at a floor price of 0.001 USDT. Meanwhile, HMSTRUSDT was 

Tap-to-earn Telegram games are all the rage now in the world of crypto gaming. It all started with 

's meteoric rise, which has now been further propelled by 

 has already surpassed many other prominent SocialFi games with its user base of 300 million. Meanwhile, 

 — the first tap-to-earn game that turned viral — has a user base of just 35 million. Furthermore, the 

teamcontinues to innovate with even more engaging gameplay and rewards, all of which have contributed to its spectacular success thus far.

Beginner

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What Is Hamster Kombat (HMSTR): Tap Your Way to Crypto Riches

AI Companions is a web3 platform that provides highly customizable and emotionally intelligent virtual companions to users looking to interact in the digital age.

We’re living in a rapidly changing digital world where technology has taken over our lives, greatly reducing human interactions. In this digital age, the internet and smartphones have reshaped our routines, dominating communication and daily tasks and leaving large numbers of people in civilized countries feeling isolated and with a deep craving for meaningful social interaction.

 (AI) companions, innovative virtual entities designed to provide immersive interaction between AI avatars and humans. These virtual companions are powered using generative AI technology, which consists of simulated emotional intelligence that’s designed to enhance the connection.

Against the backdrop of this growing demand for virtual AI companions, the 

 project AI Companions was created. It leverages AI, virtual reality/augmented reality (VR/AR) and 

 to provide a personalized virtual companionship experience that meets each user's unique preferences.

AI Companions is a digital platform that allows you to create highly personalized virtual beings by leveraging AI, VR/AR and blockchain technologies to build an immersive virtual companionship experience.

 The platform aims to unlock endless opportunities in the rapidly expanding world of virtual companionship by providing a platform where emotions and technology can interact.

Unlike other platforms that offer interactions in the form of chatbots or visual aids, AI Companions’ unique proposition consists of a lifelike human interaction through virtual reality that re-creates what feels like an actual emotional connection. Furthermore, the platform has integrated blockchain technology to ensure security, transparency and privacy when interacting.

At the heart of these AI-powered interactions is the AIC token, which powers the platform’s transactions and seamless operation.

The vision and mission of AI Companions is to leverage innovative technology to provide users with what feels like an emotionally rich virtual companionship. To achieve this, AI Companions has integrated three core technologies: AI, VR/AR and blockchain.

The platform uses AI to identify and learn your preferences in order to create a personalized partner for you, and even allows you to utilize celebrity or influencer models. Furthermore, the presence of advanced VR/AR features makes the interactions more realistic, and enriches the experience even more.

Security, privacy and integrity are core when offering a product like this. To that end, AI Companions is built on blockchain technology in order to achieve key features, such as data privacy and security, through advanced encryption, user consent management using 

, and an immutable ledger for transparency and accountability.

The platform employs the following monetization strategies to ensure sustainable revenue generation centered on the AIC token.

To ensure maximum flexibility and accessibility, AI Companions uses a subscription model that caters to a range of preferences and budgets. The basic access model is free and allows access to limited features. There’s also a hybrid subscription that combines token-based and cash subscription models. Users stake AIC tokens to access features for the token-based model, while the cash model requires users to pay a monthly fee. The token-based subscription features a 20% fee discount designed to encourage users to pay using AIC tokens.

The “pay per experience” strategy allows users to pay for premium features and personalized experiences using AIC tokens without committing to a long-term subscription. This model allows you to access features such as customized packs, the ability to send virtual gifts to companions and even enhanced experiences such as upgraded VR environments.

AIC, the native crypto token for the AIC Companions platform, is a 

 token launched on BNB Smart Chain. The token powers the AI Companions platform and provides access to diverse features. When subscribing to the hybrid model, you can use the AIC token to pay for discounted fees. You can also stake your AIC tokens to gain additional value through access to premium features and experiences.

To maintain the token’s value, AI Companions will apply a buyback-and-burn strategy. The platform will use some of the profits generated to buy back AIC tokens and 

 some of them quarterly. This will reduce the circulating supply in order to increase the token’s value.

Moreover, the project will manage a treasury reserve designed to support long-term sustainability and growth. A portion of the bought-back tokens will be put in this reserve to ensure liquidity in the future.

The total supply for AIC is 1 billion tokens, distributed as follows:

AIC's price as of Sep 18, 2024 is $0.074 , just 8% lower than its ATH of $0.08177 on Sep 11, 2024, and almost 100% higher than its ATL of $0.03771 on Sep 10, 2024. Its market cap is approximately $66.9 million.

Is AI Companions (AIC) a Good Investment?

After a successful launch in the first week of September 2024, the AIC token has generally been on a positive trajectory during which its value increased by over 115% within a 24–hour period. Such reception from the market indicates that AI Companions is providing an in-demand product in its niche.

Statistics predict that the AI market could hit $1 trillion by 2028, while the VR niche could be worth $57.55 billion by 2027. Projects such as AI Companions that offer innovative products leveraging these technologies are strategically positioned to reap big from this growth. In addition, AI Companions has a strategic and detailed road map designed to steer the project toward sustainable growth, including extensive community building, expansion of the platform’s capabilities, marketing campaigns and increased exchange listings.

As the digital age continues to unfold and AI increasingly shapes our lives, investing in the AIC token, which is the heart of the project, could be profitable due to the increased demand for AI and VR/AR-related products. That said, we strongly recommend you 

 before investing in AI Companions, since crypto projects are prone to volatility. AIC’s price volatility is evident in the extreme swing between its ATL and ATH just a day apart from Sep 10 to Sep 11, 2024.

There's a growing demand for AI companion markets as human interactions diminish due to technological advances. Projects such as AI Companions are timely in filling this void by combining AI, VR/AR and blockchain technologies. AI Companions offers users the opportunity to interact intelligently with virtual entities, making AIC a crypto to watch as its platform seeks to align with the needs of the digital age.

AI Companions.png

AI Companions (AIC): The Future of Personalized Relationships

The U.S. Federal Reserve cut interest rates by 50 basis points to 4.75%-5%, its first reduction in four years.

The SPX index was down by 0.29%, after initially hitting a record high before turning lower following the Federal Reserve's decision to cut rates by 50 basis points. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 3.21%, with Bitcoin rising by 0.13% and Ether dropping by 0.80%, in the past 24 hours.

Today's top performer is TAIKO, which surged 27.4% following the launch of the Taiko Grant Factory Hackathon, offering $100K in prizes for sustainable Web3 innovations.

Taiko (TAIKO), launched in May 2024, is a fully open-source, Ethereum-equivalent ZK-rollup scaling solution designed for decentralized, secure and permissionless operations. 

 starts on September 25, 2024, inviting innovators to build solutions in the Taiko ecosystem. The hackathon focuses on long-term sustainable projects across three tracks: DeFi/AI/DAOs, Gaming/NFTs/SocialFi, and Social Impact/ReFi. Participants are required to deploy projects on Taiko, submit a 6-month grant proposal, and explore sustainable Web3 business models. The total prize pool is $100,000, with $30,000 per track and additional special awards. For details and registration, visit the Taiko hackathon page.

Check Out the Latest Prices, Charts, and Data of 

The U.S. Federal Reserve cut interest rates by 50 basis points to 4.75%-5%, its first reduction in four years. Following the announcement, Bitcoin briefly rose to $61K before falling back below $60K. The Fed expects further rate cuts to bring the benchmark rate to 4.4% by year-end. U.S. equities closed lower after an initial gain, and gold hit a new high before retracing. The dollar index fell to its lowest level since July before recovering. Crypto-related stocks and cryptocurrencies saw volatility, with increased correlations to broader risk assets.

Yesterday, the total outflow for BTC Spot ETFs was $52.7 million, with $8.1 million from GBTC and $44.6 million from non-GBTC funds.

, a decentralized network focused on private, user-owned data and AI, has raised $25 million with backing from Coinbase, Paradigm, and Polychain. Their Telegram bot allows users to mine Vana points, which can be converted into $VANA tokens during the token generation event (TGE). Users can also earn points by completing daily tasks, challenges, and inviting friends.

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Fed Cuts Rates by 50 Basis Points Spurring Positive Price Momentum for BTC and Altcoins

Explore our article to find out what’s the Cipher Code for today’s Hamster Kombat’s Daily Cipher Code.

, where your skills in decoding daily Morse code puzzles can significantly enhance your mastery over your crypto exchange. Every puzzle, released at 7PM UTC, not only sharpens your mind but also offers the chance to earn considerable in-game rewards.

 lies the Daily Cipher, a challenge that invites players to unlock Morse code puzzles. Successfully solving these daily puzzles not only increases your coin stash but also enhances your strategic thinking, crucial for navigating the game’s complexities.

Today’s Hamster Kombat Daily Cipher: Sep 19, 2024

 Daily Cipher for Sep 19, 2024, is as follows:

Ensure each Morse code sequence is entered with precision and slight pauses between letters to confirm correct execution and secure your reward.

 by trying out the following strategies: 

Gain an early advantage by trading HMSTR tokens through Bybit’s Pre-Market Trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

The Daily Cipher and the various interactive gaming activities within 

 provide numerous opportunities not only to enhance your coin balance, but also deepen your involvement in the game. Each successfully decoded puzzle contributes to your financial growth and sharpens your analytical abilities, enriching every gaming session with both rewards and intellectual stimulation.

Stay connected for daily updates and expert advice to ensure you continue to excel in the dynamic and exciting world of 

Intermediate

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A Guide to Hamster Kombat's Daily Cipher Code (Sep 19, 2024)

Blockchain

Bitcoin

the Lightning Network is a Layer 2 protocol that reduces costs and traffic congestion on the Bitcoin network, facilitating scalability. Its recent Taproot Assets helps it scale further. Read on to find out more.

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Lightning_Network_capacity.png

Lightning_Network_TVL.png

 (BTC) is a type of digital currency whose 

 (P2P) technology allows users to engage in transactions with greater speed and efficiency. The gradual adoption of Bitcoin and cryptocurrency in general by financial institutions — and payment giants like PayPal and Square — signals a broader acceptance within financial services, pushing crypto’s evolution to better support its networks.

Essentially, this brings us to the Lightning Network, a second-layer protocol that operates alongside Bitcoin to enhance speed, versatility and privacy and reduce cost.

The Lightning Network is a second-layer protocol that runs on top of the Bitcoin blockchain to scale transaction verification. 

It alleviates expenses and mitigates traffic congestion on the Bitcoin network’s base layer. With instantaneous processing speed, Lightning Network can facilitate decentralized micropayment transactions at a global scale, eliminating the need for intermediaries.

First proposed in 2015, the Lightning Network was the brainchild of Thaddeus Dryja and Joseph Poon. The two researchers described the off-chain protocol, designed to operate using payment channels, in their paper entitled 

. Using these channels, untrusted parties could make small transactions indefinitely without adding traffic to the 

. A year later, Dryja and Poon, along with others, founded Lightning Labs, which further developed the concept and eventually unveiled the Lightning Network in January 2018 after the SegWit soft fork in August 2017. 

As its name suggests, the Lightning Network is designed for processing transactions in a nearly free and instant manner by taking them off-chain. It exists separately from Bitcoin’s primary network, using its software and nodes to communicate with the network and exchanges as it finalizes transactions. 

The Lightning Network was designed to reduce traffic on a blockchain network’s base layer, lower the blockchain’s costs, and allow for private payment channels between parties. Since its establishment, the Lightning Network has experienced steady growth and is recognized for its ability to lower fees and speed processing times. The Lightning Network has also expanded to other blockchain networks, including Litecoin.

Even in the current bear market conditions, 

, a company specializing in Bitcoin technology and finance services, has revealed a remarkable surge in the Lightning Network’s popularity. Its capacity has registered an astonishing growth of 1,200% since August 2021. As of September 2023, there are a reported 279,000 and 1.116 million monthly active Lightning users.

Lightning Network has recently released a new upgrade, the Taproot Assets protocol, which not only enhances the scalability of the network but also transforms Bitcoin into a multi-asset network. 

Essentially, Taproot Assets enables the issuance of stablecoins and real-world assets, such as fiat currencies, gold and government bonds directly on the Bitcoin blockchain. Since these transactions occur off-chain via the Lightning Network, Bitcoin is shielded from any potential congestion resulting from these activities.

Similar to the Bitcoin network, the Lightning Network is made up of nodes. However, it uses 

 to process a transaction without being recorded on the blockchain. Each transaction is accessible privately, only to the transacting parties, and each node uses Lightning Payment Channels to execute payments. The Lightning Payment Channel is opened by creating multisignature addresses between the two parties conducting a transaction. The built-in features help prevent either user from cheating or altering any data contained in the channel, and the speed of payments is limited only by that of their Internet connections. 

Suppose Alex wants to pay Kim in BTC via the Lightning Network. They could first lock up their BTC in a unique 2-of-2 multisig address, opening a direct Lightning channel and enabling them to initiate the transaction by keeping a private ledger off the mainchain. At the off-chain Lightning channel, the funds in the pool are divided into two parties — Alex’s and Kim’s funds. 

The initial balance of the pool is 2 BTC (1 BTC each). Alex pays Kim 0.5 BTC on the Lightning Network and is left with 0.5 BTC. Kim then receives 0.5 BTC and her current balance is 1.5 BTC. Once the channel is closed, the microtransactions are consolidated into a single transaction, which is then verified, processed and added to the on-chain blockchain, and their balances will be updated accordingly.

However, if either Kim or Alex does not have a direct channel, the transaction is routed to Jack using a type of smart contract — hashed time-locked contracts (HTLCs). The contract is used to promise Kim that she’ll receive her BTC and Jack has to prove that he paid the agreed amount to Kim. In return, Jack will receive a small fee for executing the order. 

While Bitcoin is convenient and easy to use, its limitations have led to some wariness regarding its adoption as a currency. Consequently, BTC isn’t accepted everywhere, and its value tends to fluctuate according to demand, with built-in deflation. If a file is lost or a hard drive crashes, the wallet contained therein disappears, too, with no way to recover the lost funds. There’s also no buyer protection when goods are purchased with BTC. 

Perhaps the biggest limitations of Bitcoin, however, are linked to its speed, cost and scalability. 

Bitcoin transactions are verified and recorded in blocks. A new Bitcoin block is created every ten minutes, and each block contains a specific number of transactions. Miners prioritize transactions based on fees, which means that you might find yourself bidding against other users to ensure your transactions are processed promptly. That means, the higher the fee rate, the faster the transaction will be processed.

During slower periods you can expect your transaction to be processed on time, but during busier days or hours, you may be waiting a long time — or facing high fees as miners race to get through multiple transactions in the 

 associated with Bitcoin are necessary to support the network, but they tend to be high, especially for smaller transactions. Anyone who wants their transactions to be processed needs to expect to pay a higher fee during the network congestion since only a limited number of transactions can be included in each block. Traditionally on the Bitcoin network, miners would receive a subsidy when a new bitcoin is minted and transaction fees for adding the transactions into a block.

However, the fees incurred for using the Bitcoin Lightning Network are only required for the following:

As long as the channel is open, you can make multiple transactions, and the only fees you pay are those due when you open and close the channel. The Lightning Network uses block space more efficiently, improving Bitcoin’s capacity and lowering transaction costs.

The capacity for Bitcoin growth is limited, in other words, it has a scalability problem. Bitcoin’s blocks have a size limit of about 1 MB, and they’re generated only about every 10 minutes with a processing speed of about seven 

, which processes almost double that number (before its upcoming 

 consensus), while VisaNet can process up to 24,000 TPS. 

This means that the capped capacity limits the number of transactions to be processed on-chain, thus limiting the database to grow. Whenever the number of transactions outgrown the limit, the nodes will not be able to keep up. Essentially, the network is clogged with pending transactions that could drive a fee bidding war. 

The scalability problem first became apparent in 2015, with a variety of solutions being offered, including increasing block size. The 

 (BCH) hard fork occurred in August 2017, and that same year, segregated witness (SegWit) was also implemented as a potential solution to the overall Bitcoin capacity issue.

The Bitcoin network’s base layer is characterized by the technological framework that supports the network, as well as the monetary application. It’s used to verify and complete transactions, but as has already been discussed, it has limitations, particularly Bitcoin’s capacity and cost. The second layer protocol is designed to address these limitations. 

) protocol is also known as an off-chain solution. It’s decentralized, much like the main blockchain, and offers the same security protocols, but its primary purpose is to solve the scalability issues of conventional blockchain technology.

On a decentralized network, global consensus is essential, and all participating nodes carry a complete copy of transactions for verification purposes. This prevents 

, without having to rely on a central authority or regulatory body. 

) security layer, which creates an immutable record of the data. The blockchain acts as the base layer. The second layer protocol decreases the amount of data on the blockchain by allowing for off-chain transactions. 

With a second layer protocol, basic computations can be run off-chain while the transactions are still anchored to the blockchain. This minimizes the amount of data stored on the base layer, freeing up critical resources without compromising security. In other words, blockchains with second layer protocols are more usable and scalable, and thus capable of competing with larger and more centralized systems.

 to improve speed and scalability. While Bitcoin uses the Lightning Network, Ethereum offers multiple Layer 2 scaling solutions, such as 

. Ethereum’s Layer 2 protocols, which include 

, are designed to address scalability and cost concerns by enabling off-chain computation. 

Bitcoin’s Layer 2 solution lies in the Lightning Network, which uses smart contracts to enable near-immediate and low-cost transactions, along with cross-platform “atomic swaps” in which users can trade one coin for another without using an exchange.

Segregated Witness, or SegWit, is the most prominent Bitcoin protocol upgrade to date. It effectively segregates transaction data from witness data, so that each transaction on the blockchain consists of two parts: 

SegWit is a soft fork, or backward-compatible change of code, which splits transactions into two segments. It moves the witness data (or signature) from the original segment to the witness segment. 

The implementation of SegWit essentially doubles block size, upgrading it from 1 MB to 2 MB while requiring no major changes to the existing code. Although SegWit doesn’t necessarily solve the scalability problem, it enables support for Layer 2 solutions such as the Lightning Network.

How the Lightning Network Helps Combat Bitcoin’s Problems

By consolidating numerous microtransactions into a single one, the Lightning Network can reduce network traffic. Taking these microtransactions off the main network ensures ample space for larger, higher priority transactions and enhances processing speed. 

The Lightning Network also improves scalability by transacting and settling off-chain.

How Can a User Benefit from Bitcoin’s Lightning Network?

The biggest pros of the Lightning Network are its speed and affordability. As mentioned above, on the Bitcoin network’s base layer fees and waiting periods can be prohibitive. However, with the Lightning Network, you can send and receive small payments in a way that is simply not feasible on Bitcoin’s network. You can swap payments numerous times before closing the channel and completing a single transaction, all for one fee. 

Because the Lightning Network operates as a secondary layer on top of the main network, it still offers users all of Bitcoin’s standard security protocols. Users can also switch between networks, according to their needs, accessing the Bitcoin network to complete large transactions and switching back to the Lightning Network for microtransactions. Transactions associated with the Lightning Network are private, occurring off the blockchain and recording only the overall results.

Finally, the latest Taproot Assets upgrade expands Bitcoin technology to more mainstream users, as real-world assets like fiat currencies and gold can be issued via the Taproot Assets protocol.

Lightning Network’s Impact on Bitcoin Adoption

The Lightning Network and Bitcoin work together seamlessly, encouraging more people to use both technologies. Those who already use Bitcoin will naturally turn to the Lightning Network to make fast, small or inexpensive payments. This flexibility and efficiency granted by Lightning Network will continue to draw more users to using Bitcoin and Lightning. The more people use Lightning Network and Bitcoin, the more both will become recognizable on conventional exchanges and be accepted as more traditional forms of payment.

While the Lightning Network has the potential to solve some of Bitcoin’s issues, it does have some shortcomings. 

First, the Lightning Network may not necessarily be inexpensive to use. This is because before making micropayments between either party, the user must first deposit on-chain. Furthermore, the final amount for the transaction closing must also be recorded on the Bitcoin chain. 

Secondly, as a blockchain, Lightning Network is susceptible to various security risks. One notable risk involves malicious actors creating many channels that expire simultaneously, overwhelming the blockchain's capacity, and then potentially stealing funds from users unable to withdraw due to the congestion.

Lastly, integrating Lightning Network into current payment systems is also a complex process. Merchants may not necessarily be incentivized to adopt Lightning Network, particularly given the volatility of Bitcoin.

While it does have some limitations, it provides users with more options and versatility. As people increasingly adopt it to make lightning-quick micropayments, developers will continue developing compatible wallets and support systems to build and strengthen the network.

Launched in 2018, the Lightning Network is rapidly changing the face of Bitcoin. Developers have worked tirelessly to create the robust technology necessary to support and promote the network and create a user-friendly platform. Anyone can access and use the Lightning Network using nothing more than their smartphone, unlocking a myriad of possibilities for seamless payments. The recent integration of the Taproot Assets protocol has further expanded Lightning’s potential for both Bitcoin and its users. With the growing adoption of Lightning Network, the vision of a faster, more scalable Bitcoin ecosystem is steadily becoming a reality.

Lightning Network: The Scalable Solution for Bitcoin

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards