Cash App is bringing the Bitcoin Lightning Network to its 36 million users
At the end of last year, Cash App dropped Bitcoin support and added a new service called Cash Payment Service. It allowed users to purchase cryptocurrencies through their debit card with no fees on any cryptocurrency exchange rates. However, as prices have risen in recent weeks, it’s been revealed that part of BTC transactions using this payment method were routed above-board for higher transaction costs than if they had been paid via standard credit cards.
The “cash app bitcoin lightning network” is a new feature that will allow users to send money without waiting for confirmations. This will make the process much faster and cheaper than other options.
Since late 2017, Bitcoin has been offered on Cash App. However, the mobile payment company plans to make the Lightning Network available to its millions of customers.
The most popular cryptocurrency is often characterized as a dinosaur incapable of meeting the technological requirements of a high-throughput payment network. As a result, detractors contend that it is a one-dimensional service because of its core use case as a store of wealth.
The Lightning Network, as a layer-2 solution, addresses some of these difficulties. Bitcoin is rapidly being considered as a payment mechanism as more suppliers join in.
What is the Bitcoin Lightning Network, and how does it work?
With a throughput of five transactions per second (TPS) and an average transaction price of $1.79, Bitcoin falls well short of the mark in terms of payments.
To be honest, $1.79 is a bargain compared to the highs of April 2021, when transactions cost an average of $62.78. Nonetheless, any transaction costing more than a few cents is impracticable as a widely accepted payment method.
The Lightning Network, with its layer-2 solution, provides tremendous scalability and cheap transaction costs.
It operates by diverting transactions off the main chain and placing them into peer-to-peer “payment channels” between two parties, such as a buyer and a coffee shop. Once the channel is constructed, it can handle an endless number of transactions in real time.
To open a payment channel, the payer must first lock Bitcoin into the network. After the receiver has been locked, he or she may invoice amounts based on the cost of the items and services sold.
Costs are made up of a mix of routing fees for sending payment information between Lightning Nodes and Bitcoin transaction fees for opening and closing channels. These, however, are still much less than straight main chain transactions.
In November 2021, the Lightning Network’s total USD value locked (TVL) reached a peak of $216 million. Since then, TVL has dropped dramatically, and it now stands at $140 million.
This, of course, links up with the declining USD price of $ BTC, as seen by the quantity of Bitcoin locked (now 3.338k) peaking in November 2021 and being constant during the slump time.
defipulse.com is the source of this information.
El Salvador’s Lightning Network-based Chivo Wallet is expected to bring a substantial amount of the 2021 spike live in September.
The Lightning Network is gaining more participants.
Cash App is preparing to provide its customers access to the Lightning Network as a sign of increased popularity.
Furthermore, with Cash App’s monthly active user count rising by more than 10 percent since 2016, Bitcoin adoption is expected to skyrocket. Cash App is presently only accessible in the United States and the United Kingdom.
businessofapps.com is the source for this information.
Belo App, located in Argentina, said on Monday that it has partnered with infrastructure provider OpenNode to enable Lightning Network access to its customers.
Julie Landrum, OpenNode’s Head of Growth, said that the arrangement allows millions of people in Latin America to conduct quick Bitcoin transactions.
“We’re ecstatic about OpenNode’s integration with the Belo App since it means millions of people in Latin America will be able to deal in bitcoin instantaneously, accelerating adoption in an area where bitcoin is flourishing.”
Bitcoin’s viability as a payment option is poised to grow thanks to the Lightning Network, as more payment companies catch on to the trend.
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The “Cash App is bringing the Bitcoin Lightning Network to its 36 million users” is a big announcement from the company. The company plans on leveraging bitcoin in order to allow for faster and cheaper transactions. Reference: leverage bitcoin.