Block Journal
No Result
View All Result
  • Login
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
Magazine
Newsletter
  • Trending Now
  • Bitcoin
  • Altcoin
  • Ethereum
  • Analysis
  • Blockchain
  • Metaverse
  • NFT
  • DeFi
  • Web3
  • GameFi
  • ICO
  • Legal
  • Security
Block Journal
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
No Result
View All Result
Block Journal
No Result
View All Result
  • News
  • Crypto
  • Markets
  • Investing
  • Videos
  • Charts
Home Crypto Bitcoin

Lightning Network Integration Speeds Up Bitcoin Use

News Room by News Room
March 12, 2023
in Bitcoin
Reading Time: 4 mins read
0 0
A A
0

www.financemagnates.com

10 March 2023 16:13, UTC

  

Reading time: ~4 m

Amid all the controversies, hype and contentious debates around Bitcoin, it’s sometimes forgotten what its key purpose was originally intended to be. Neither a vehicle for speculation nor a place to park your wealth if gold just won’t cut it, Bitcoin was intended to enable peer-to-peer decentralized transactions. Or in other words, it’s supposed to be used as money, while cutting out the middlemen.

In the world imagined by Bitcoin maximalists (who eschew other cryptocurrencies, adamant that Bitcoin will consume all competition, both cryptographic and traditional), all your transactions can be finalized on-chain, from picking up a coffee to buying a house. And in fact, this isn’t quite as far-fetched as it might sound, as in El Salvador, BTC has been legal tender since 2021, and can be used for daily transactions.

However, an obvious obstacle to this kind of adoption (even if it is only partial, and runs parallel to existing, more familiar payment methods), is the problem of scaling. Put simply, the Bitcoin network isn’t configured to handle this volume of throughput, takes time to process transactions, and would struggle to deal with billions of micro-transactions, for coffee or anything else, on a constant basis. And, this is where the Lightning Network steps in.

What Is Lightning Network?

The Lightning Network, which first went into operation in 2018, is a second layer operating on top of the Bitcoin network. It takes transactions off the main blockchain, allowing channels to be opened between users, through which transactions can take place at speed and cheaply. When users are finished with their interactions and a channel is closed, all the transactions that have been made are then settled back on the main Bitcoin blockchain.

The result of this is simple but critical: instant payments, and Bitcoin as a usable method of everyday transactions, just as it was intended to become.

Xapo and Lightspark

This month, Xapo Bank, working in partnership with Lightning Network infrastructure builder Lightspark, integrated Lightning Network into its services, bringing two advantages. Firstly, customers can now pay for purchases up to a value of $100 directly in BTC, at merchants that themselves utilize Lightning Network.

Secondly, this development represents a meaningful step in altering the perception of Bitcoin, from a digital product that is exotic and on the fringes, to an asset with utility that links up with daily life. Xapo Bank, based in Gibraltar, may be focused on crypto, but it has obtained a banking license, principal membership of Visa and Mastercard, and SWIFT membership.

Buying a coffee and similar minor transactions might sound prosaic, but if Bitcoin is to fulfil its potential, then it will have to prove capable of carrying out all the mundane functions currently covered by traditional currencies.

Also, when it comes to the integration of crypto and traditional finance, Xapo Bank offers USD accounts that are integrated with support for the USDC stablecoin, allowing users to convert easily between crypto and fiat, and providing a seamless and self-contained crypto on/off ramp.

C= Liquidity

One of the most prominent backers of Lightning Network and its potential has been Jack Dorsey, the Co-Founder and former CEO of Twitter. Dorsey is now focused on fintech platform Block, which he founded in 2021 (when it was known as Square), and which recently launched a service provider called c=. In case you were wondering, c= refers to the speed of light part of E = mc2, and is pronounced C equals.

C= is being developed through a Block subsidiary called TBD, which aims to improve routing on the Lightning Network and address the problem of a lack of network liquidity, which can lead to failed transactions. These are critical issues to address but can be regarded as welcome problems since they reflect the kind of strain that is caused by network adoption.

In fact, a chart circulated last month by financial services firm Valkyrie Investments indicates impressive monthly growth in Lightning Network capacity, clearly marking key developments along the way, with several related to payments application Strike, which connects Bitcoin and traditional banking, expanding its services.

Relai Investment

Further, Lightning-related news comes from the Swiss Bitcoin-only app Relai, which specializes in allowing users to easily buy and sell BTC, and hold their own assets in a non-custodial wallet. This week, the company announced that it had raised $4.5 million in a funding round led by Ego Death Capital, a Bitcoin venture fund co-founded by influential Bitcoin advocate Jeff Booth.

As well as upgrading to utilize the Lightning Network, Relai’s plans incorporate zero-fee trading services and the launch of a white-label product that will enable other fintech platforms to offer trading between fiat and bitcoin.

Relai is geared towards offering user-friendly, mobile services that encourage retail onboarding into Bitcoin without a requirement for extensive technical knowledge. This fits neatly with a core aim of the Lightning Network, to enable daily Bitcoin use, at scale. And, the aims of the Lightning Network, ultimately, loop back to the key purpose at the foundation of the entire Bitcoin enterprise: an improved iteration of money, in a digital format.

Read the full article here

ShareTweetSharePinShareShareSend

Related News

Bitcoin spreads soar 20 times higher on BinanceUS than on Coinbase, Kraken: Kaiko
Bitcoin

Bitcoin spreads soar 20 times higher on BinanceUS than on Coinbase, Kraken: Kaiko

June 10, 2023
Argentina Ready To Support Bitcoin With Gathering And Event In Buenos Aires
Bitcoin

Argentina Ready To Support Bitcoin With Gathering And Event In Buenos Aires

June 9, 2023
Another Mysterious Signed Message Appears Associated With the 2009 Bitcoin Block 1,018
Bitcoin

Another Mysterious Signed Message Appears Associated With the 2009 Bitcoin Block 1,018

June 9, 2023
US Bitcoin Supply Dominance Falters As BTC Moves to Asia en Masse, According to Crypto Analytics Firm Glassnode
Bitcoin

US Bitcoin Supply Dominance Falters As BTC Moves to Asia en Masse, According to Crypto Analytics Firm Glassnode

June 9, 2023
Bitcoin: future value forecasting
Bitcoin

Bitcoin: future value forecasting

June 9, 2023
Bitcoin: future value forecasting
Bitcoin

Bitcoin: future value forecasting

June 9, 2023
Bitcoin Advocate Nic Carter Accuses ‘Laser-Eyed Maxis’ of Turning Bitcoin Into a ‘Secular Cult’
Bitcoin

Bitcoin Advocate Nic Carter Accuses ‘Laser-Eyed Maxis’ of Turning Bitcoin Into a ‘Secular Cult’

June 9, 2023
XRP and Litecoin (LTC) Breakouts on the Horizon? Here’s How Bitcoin (BTC) Can Help: Crypto Analyst
Bitcoin

XRP and Litecoin (LTC) Breakouts on the Horizon? Here’s How Bitcoin (BTC) Can Help: Crypto Analyst

June 9, 2023
Bitcoin’s Price Soars To New Heights, But For How Long?
Bitcoin

Bitcoin’s Price Soars To New Heights, But For How Long?

June 9, 2023

Discussion about this post

Latest News

AUD/USD bears in the market but China could be its savior

AUD/USD Price Analysis: Bulls eye break of 0.6750

June 10, 2023
Wall Street rises on hopes of Fed pausing hikes, debt ceiling deal cheer

Salesforce’s generative AI integration ‘to offer significant long-tailed growth opportunities’ – Goldman Sachs

June 10, 2023
Mark Zuckerberg says Meta may be ‘primary beneficiary’ of Apple Vision Pro headset

Mark Zuckerberg says Meta may be ‘primary beneficiary’ of Apple Vision Pro headset

June 10, 2023
Stocks to Watch: Aehr Test Systems, Roku, Cingulate

Nightcap to Buy Certain DC Bars Assets for Up to GBP4.7 Mln

June 10, 2023
Zcash Community To Create Sustainability Development Fund

Zcash Community To Create Sustainability Development Fund

June 10, 2023
ADVERTISEMENT

Popular

  • Canada’s budget measures brighten funding prospects for critical miners

    Danske Bank raises profit goal, puts Norway retail unit up for sale

    0 shares
    Share 0 Tweet 0
  • EUR/USD has likely bottomed out for now – Nordea

    0 shares
    Share 0 Tweet 0
  • Slump in global cashew demand pushes Ivory Coast industry to verge of collapse

    0 shares
    Share 0 Tweet 0
  • Iran’s president visits Syria as he seeks to bolster Tehran’s sway over ally

    0 shares
    Share 0 Tweet 0
  • Aave Proposes Deployment of GHO Stablecoin on Ethereum

    0 shares
    Share 0 Tweet 0
Block Journal

Block Journal is the world’s leading source in blockchain news and updates. Follow us to stay up-to-date with all you need to know in web3.

LEARN MORE »

Recent Posts

  • AUD/USD Price Analysis: Bulls eye break of 0.6750
  • Salesforce’s generative AI integration ‘to offer significant long-tailed growth opportunities’ – Goldman Sachs
  • Mark Zuckerberg says Meta may be ‘primary beneficiary’ of Apple Vision Pro headset

Trending Topics

Altcoin Analysis Bitcoin Blockchain Commodities Crypto DeFi Ethereum Forex Futures GameFi ICO Investing Legal Markets Metaverse News NFT Security Stocks Uncategorized Videos Web3

Get Informed

The most important crypto and finance news and events of the day

Be the first to know latest important news & events directly to your inbox.

By signing up, I agree to our TOS and Privacy Policy.

  • About
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact

Copyright © 2023 Block Journal - Created by Sawah Solutions.

No Result
View All Result
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine

Copyright © 2023 Block Journal - Created by Sawah Solutions.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.