The Lightning Network as a Bitcoin Layer 2 protocol allows BTC holders to form private payment channels between each other.
Leading crypto payment platform BitPay has added support for Bitcoin’s (BTC) Lightning Network. Merchants registered on BitPay will now be able to Lightning wallets to receive payments. In addition, the new BitPay-enabled Lightning payment feature also works out much faster and is far cheaper than ordinary transactions because of the Layer-2 scaling solution. According to an official press release, “BitPay merchants can now receive payments from Lightning-enabled wallets like Cash App and Strike. Consumers now have a low-cost alternative when paying with Bitcoin at a BitPay-enabled merchant.”
Insider Thoughts on the BitPay Integration
Transactions on Bitcoin’s Lightning Network cost very little since the payment do not compete for on-chain block space. In addition, BitPay’s co-founder Tony Gallippi also sees an added advantage to the Layer 2 protocol’s makeup. According to him, “BitPay’s integration with the Lightning Network offers customers more choice and merchants more ways to be paid leveraging blockchain technology.”
One of BitPay’s foremost partners accepting BTC payments via the Lightning Network also shares Gallippi’s optimism. According to Michael Relich, co-chief executive officer of retail clothing brand PacSun, the company looks forward to gaining the best of the new integration. Going further to list the advantages posed to PacSun customers from using the Layer-2 scaling solution, the company’s co-CEO explained:
“The Bitcoin Lightning Network provides our customers with instant payments and exceptionally low network fees, and creates more opportunity for all holders of bitcoin to shop online.”
BitPay merchants will not need to make any changes to begin accepting Lightning Network payments from customers. All merchants currently signed up can immediately begin to enjoy benefits of the Lightning Network. However, customers will be required to make the payments from Lightning-supported wallets such as Cash App and Strike. Cash App’s Layer 2 BTC payments came about after financial services firm Block created Cash App’s Lightning Network development kit. The kit is publicly available and free for other wallet services to use.
The Lightning Network as a Bitcoin Layer 2 protocol allows BTC holders to form private payment channels between each other. Through these payment channels, users are able to perform numerous off-chain transactions multiple times. Consequently, transaction throughput much higher than Bitcoin’s base layer becomes possible.
Lightning Network Global Potential
The Lightning Network has the potential to scale up Bitcoin’s usage as a global means of exchange. In fact, the Layer-2 scaling solution is frequently touted as the one to achieve such. As US Senator Cynthia Lummis recently posited, the Lightning Network can quickly transform BTC from a commodity to a currency.
Some business establishments across the world and in various sectors already enjoy Lightning Network integration in daily operations. For example, Australia’s most successful baseball team Perth Heat uses it to pay athletes and employees. The team also accepts the digital currency as payment for merchandise.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Source: https://www.coinspeaker.com/bitpay-lightning-network-integration/