I'm posting this as a BTC Review because the Lightning Network is like a layer 2 on top of Bitcoin that was launched in 2015 and is already quite well adopted. It shows that Bitcoin is more than just a store of value. Through the Lightning network, it provides a very fast and easy to use form of payment in many developing countries.

One of the most impressive examples is in El Salvador, where the Lightning Network enables fast, low-cost Bitcoin transactions for everyday purchases, helping to increase financial inclusion for the unbanked population. Businesses ranging from street vendors to multinational companies like McDonald's and Starbucks have integrated Lightning payments, allowing for seamless transactions and reducing dependency on traditional banking systems​

More context:

The Lightning Network is a "layer 2" solution built on top of Bitcoin that enables fast, low-cost transactions by allowing users to open private, off-chain payment channels between each other. Transactions are conducted off-chain within these channels, which remain open until closed, and only the final balances are recorded on the Bitcoin blockchain. This reduces congestion and transaction fees on the main chain, making microtransactions more economically viable while maintaining the security of the Bitcoin network​

However, the stats in the video show theoretical best case scenarios. Here's more context on these numbers as well:

Lightning Network (Theoretical: 40,000,000 TPS, Realistic: Varies)

Theoretical: The Lightning Network can theoretically achieve up to 40 million TPS by using a vast number of off-chain channels operating simultaneously.

Realistic: In practice, the Lightning Network's capacity varies significantly based on the number of open payment channels and network conditions. It is highly scalable for microtransactions but doesn't reach anywhere near 40 million TPS in everyday use. Its current capacity is constrained by the liquidity available in channels, network topology, and other factors that impact routing efficiency.

Solana (Theoretical: 65,000 TPS, Realistic: 1,000-2,000 TPS)

Theoretical: Solana's blockchain is designed for a maximum theoretical throughput of 65,000 TPS using its unique Proof of History (PoH) consensus mechanism. Realistic: In real-world conditions, Solana typically processes between 1,000 to 2,000 TPS. This number includes vote transactions, which are part of the network’s consensus process but are not considered "real" transactions by some analysts. When excluding vote transactions, the effective TPS is closer to around 1,000​

Visa (Theoretical and Realistic: 24,000 TPS)

Theoretical: Visa's centralized payment network can theoretically and realistically handle around 24,000 TPS. This number represents its tested and verified capacity to process transactions across its global network, depending on infrastructure conditions and transaction types​

Realistic: In practice, Visa consistently achieves this level of performance due to its mature, optimized infrastructure.

PayPal (Theoretical and Realistic: 193 TPS)

Theoretical and Realistic: PayPal handles around 193 TPS in practice. This is significantly lower than Visa or blockchain-based solutions like Solana because PayPal was designed for lower-frequency transactions with a focus on user experience and security rather than raw throughput​

Ethereum (Theoretical: 15 TPS, Realistic: 12-15 TPS)

Theoretical: Ethereum’s original proof-of-work network is capable of about 15 TPS, constrained by its block time and gas limit.

Realistic: In practical terms, Ethereum processes around 12-15 TPS. The exact number can vary depending on network congestion, transaction types, and optimizations. Ethereum's focus has been on decentralization and security over speed, but upcoming upgrades (like Ethereum 2.0) aim to significantly improve this capacity through sharding and other scaling solutions​

Sources: https://cointelegraph.com/news/bitcoin-lightning-network-vs-visa-and-mastercard-how-do-they-stack-up https://d-central.tech/bitcoins-lightning-network-from-seven-to-40-million-tps/ https://coincodex.com/article/14198/layer-1-performance-comparing-6-leading-blockchains/ https://chainspect.app/chain/solana Show Less