Bitcoin adoption takes a step forward with Lightning Network
The Lightning Network that creates a layer on top of the Bitcoin blockchain gets a boost from a start-up CoinGate. The payment processing company is reportedly adding its 4,000 merchants to the off-chain system, making Bitcoin adoption take a step forward.
According to Forbes report, the merchants which will be able to accept payments through Lightning Network include: Chronoswiss and Louis Chevrolet (Swiss watch manufacturers), Mmoga.com (gaming store), Bitlaunch (hosting service), Livejasmin and Manyvids (adult websites).
It is to be noted that with Lightning Network, transactions can be passed both back and forth, before it’s added to the underlying blockchain. It makes the transaction speed faster and costs significantly reduced. In a Lightning payment system, funds are deposited by two parties at one Bitcoin address or a channel where exchange of funds can be done a limitless number of times. It helps in maintain the security of Bitcoin.
Currently, CoinGate is not working with any U.S. companies but they hope to do so by next year. CoinGate told Forbes in an email: "We have processed more than 100 payments, with no single error. In the beginning, we announced that we will reimburse losses if they occur because of a network error, but it actually never happened."
Though, the news might be great for Bitcoin adoption but whether the Lightning Network adoption will affect the BTC price is still a question that many continue to ask. Some are, however, pretty confident that increase in Bitcoin adoption will rise the BTC price.
Also, Bitcoin's Lightning Network capacity went up to 100 Bitcoin on Tuesday. It’s a good news for the community as the network’s capacity was as low as three Bitcoin six months ago. It shows the growth of Lightning Network's in the recent few months.
Image via Shutterstock
Join our Telegram group