Many have applauded Lightning technology, casting it as an answer to the issues currently tied up in bitcoin payments, such as the network congestion inherent in on-chain transactions. In addition, the current popularity of bitcoin means that many people are hoarding their crypto cash, rendering it illiquid.

Lightning is an off-chain payment system powered by bilateral, pre-funded payment avenues. These allow for a faster and more inexpensive payment system than what is currently available using the Blockchain alone. If several people kickstart their own Lightning payment systems, then this will potentially allow for bitcoin to be shared, and for cryptocurrency to be made liquid. In theory, problem solved.

Sounds promising, but developments are still underway. A small team is currently working on a routing facility that will hopefully pinpoint which nodes can undertake transactions, transfer the payment using the nodes, and successfully complete the payment transaction.

However, some commentators, most notably Egor Homakov, have pointed out that the Lightning Network will not solve Bitcoin\'s liquidity issue, as the project is not a reasonable incentive model. He argues that, crypto enthusiasts aside, few people would feel the need to open up a new channel, and few people will take an interest in the tech, meaning few payments are completed – prohibiting the system from freeing up the current liquidity issue.

Could this potentially land us back to square one in terms of bitcoin\'s illiquidity? If that\'s the case, will the tech really revolutionise the crypto world as once predicted?