Bitcoin adoption is getting a huge boost to the Lightning Network


Bitcoin adoption is about to take another step forward with the Lightning Network receiving a boost today from payment processing startup CoinGate, which is adding all 4,000 of its merchants to the off-chain system.

Those CoinGate merchants who will be able to accept payments through the Lightning Network include Swiss watch makers Chronoswiss and Louis Chevrolet, game store Mmoga.com, Bitlaunch hosting service, and adult websites Livejasmin and Manyvids.

The lightning net, first proposed by Thaddeus Dryja and Joseph Poon in a 2015 white paper, creates a layer on top of the bitcoin blockchain, where transactions can be passed back and forth before being added to the underlying blockchain.

This should mean that the speed of transactions is significantly increased while the costs are significantly reduced.

There are now several Lightning wallets available, as well as companies that can process them on behalf of merchants.

When sending a Lightning payment, two parties deposit the funds at a bitcoin address, a so-called channel, where they can trade funds an unlimited number of times.

This maintains the security of bitcoin but means that small and regular payments do not need to be added to the underlying blockchain until the channel is closed.

Questions have been raised about what the adoption of Lightning Network will mean for the price of bitcoin, with much of the price dependent on transaction fees collected by miners.

However, most are confident that with more bitcoin adoption the price will continue to rise.

Bitcoin’s Lightning Network capacity was revealed yesterday to reach 100 bitcoins (about $ 730,000 at the time of publication), according to data from the 1ML monitoring asset.

The capacity of the network was just three bitcoins up to six months ago, revealing the extent of the growth of the Lightning Network in recent months.

In July CoinGate launched a Lightning Network trial with around 100 different stores around the world. However, CoinGate is not currently working with any US company, but hopes to start doing so next year.

In an email, CoinGate said: “We have processed more than 100 payments, without any errors. At first, we announced that we will refund losses if they occur due to a network error, but in reality it never is. happened “.

One of the first users of CoinGate’s trial took to Twitter to praise the system.

A Lightning Network bitcoin user buys beer using the system in July.

Twitter / @hodlonaut


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