El Salvador’s Bitcoin node can now transfer up to $ 1 million

nodes-lightning-network-bitcoin-beach

Key facts:
  • The information was revealed by the group that created the wallet, Galoy, via Twitter this week.

  • The increase in liquidity allows to have a greater capacity to execute transactions with BTC.

The digital purse (wallet) native to the Bitcoin beach of El Salvador, «El Zonte», the Bitcoin Beach, registered this week more than USD 1 million in terms of liquidity, as a sign of growth of the Bitcoin Lightning Network (LN) with which they work.

This was indicated by Twitter the group that created the wallet, Galoy, where they briefly reported that the Bitcoin Beach node, which is one of the first wallets in that country, had arrived, in detail, at the USD 1,119,341.93 of liquidity, According to the information provided by LN’s tracking and analysis firm, ML.com.

To clarify, Galoy, based in the United States, provides its wallet to all the businesses on the beach of «El Zonte», and it works through a node that, right now, has a great capacity to execute transactions.

The interesting thing is that the potential of Bitcoin Beach is so much, that it already simulates the operation of a bank, since they themselves provide liquidity to the other wallets and payment channels of the place.

And what does that increase in liquidity mean? That now has a greater ability to execute transactions in El Salvador, always relying on the Bitcoin Lightning network.

These numbers are reminiscent of the Arcane Research report released last week, which shows that the LN has grown considerably, thanks to the impulse of El Salvador.

Taking the wallets built on that network as a reference, they determined that payment volumes increased by 20% per month from January to August, with a jump in September of 26%, thanks to the adoption of BTC as legal tender.

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Bitcoin Beach node details offered
by 1ML.com. Source: 1ML / 1ml.com

Bitcoin Beach, a centralized but growing project

Bitcoin Beach, born in 2019, is a project that was built in El Zonte, the pioneer community in the use of cryptocurrency in that country. It was the bet of the American Michael Peterson to encourage the use of BTC in the place.

Although it is a disadvantaged town in terms of services and infrastructure, El Zonte was the epicenter of the use of BTC in the country and even the inspiration for President Nayib Bukele advance in its intention to make it legal tender.

Peterson told the BBC that before starting the wallet project, he received an important donation of cryptocurrency to help the inhabitants of El Zonte, for which he created the Hope house, a local non-profit organization that seeks to improve education and opportunities for that population.

Thus, and after acquired experiences, the “Bitcoin Beach” custodial wallet was launched. This application, which can be used anywhere in the world and by anyone (they do not necessarily have to be residents of El Zonte), requests a telephone number and geolocation permits to offer its service. That, for several users, is centralization; and for this reason it has received criticism, that its operation is contrary to the philosophy of Bitcoin.

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