utxostack on Nostr: The Lightning Network is the most promising Bitcoin Layer 2 solution, enabling ...

The Lightning Network is the most promising Bitcoin Layer 2 solution, enabling instant (sub-second confirmation), low-fee (less than 0.1%) payments with virtually unlimited scalability. It also offers strong privacy protections, making it a potential global peer-to-peer payment infrastructure. However, the Lightning Network currently faces three core challenges:

- Lack of stablecoin support
- Insufficient liquidity
- High user onboarding barriers

UTXO Stack has introduced a series of targeted solutions:

- Introducing stablecoins through the Hybrid Lightning Network (Hybrid LN)
- Enhancing liquidity via the Decentralized Liquidity Staking Pool (DLSP)
- Lowering user barriers with the Zero-Cost Channel Opening (ZCCO) mechanism