Cash App Set To Bring Bitcoin Lightning Network To Its 36 Million Users
January 12 2022 - 6:10PM
NEWSBTC
The Lightning Network has been integrated into Cash App, a
peer-to-peer payment service operated by Block, previously Square
Inc. The feature allows transactions between parties that aren’t
connected to the blockchain network. It was created to address the
scalability issues with the flagship cryptocurrency. Bitcoin
Lightning Important For Speedy Transactions Block (previously
Square), a fintech firm co-founded by former Twitter CEO Jack
Dorsey, owns Cash App. The news of the BTC L2 integration was
announced as a notification on the official Cash App app, which
Crypto Twitter picked up: The news are real! @CashApp added
#Bitcoin Lightning ⚡️Network 🚀 pic.twitter.com/zbbdqcx0dC — Yegor
Petrov 🔑⚡️ (@yeg0rpetrov) January 11, 2022 With a throughput of
five transactions per second (TPS) and an average transaction price
of $1.79, Bitcoin falls far short of the mark in terms of payments.
$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. With its layer-2 solution, the
Lightning Network provides tremendous scalability and cheap
transaction costs. It operates by diverting transactions from 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 created, it can handle an endless number of transactions
in real-time. The payer must first lock Bitcoin into the network to
open a payment channel. After the recipient has been locked, they
can invoice amounts based on the cost of the items and services
sold. Fees are 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 far
less than direct main chain transactions. In November 2021, the
Lightning Network’s total USD value locked (TVL) peaked at $216
million. Since that time, the TVL has reduced. TVL locked in the
lightning network. Source: DeFiPulse Block CEO Jack Dorsey, who was
previously the CEO of Twitter, has long advocated for the tool’s
inclusion. “It’s not a ‘if,’ it’s more of a ‘when,'” he told
podcaster Stephan Livera in 2019 that they would combine the
scaling technology with payments provider Block’s mobile app. “We
don’t think it stops at [bitcoin] buying and selling,” he remarked.
Steve Moser, editor-in-chief of TheTapeDrive and a contributor to
MacRumors, tweeted in November that Cash App “is working on
Lightning network integration.” Moser said he discovered proof that
Cash App was preparing to implement the additional features in
December. Square’s Cash app is working on Lightning network
integration. $SQ #Bitcoin #cashapp #LightningNetwork
pic.twitter.com/AzMIfU2xex — Steve Moser (@SteveMoser) November 15,
2021 According to the most recent data from Business of Apps, Cash
App had over 36 million users in the United States and the United
Kingdom. BTC/USD trades below $%k. Source: TradingView Related
article | Number Of Bitcoin Lightning Network Nodes Jumps 23% In
Three Months Cash App Is Not The Only One Adding The Feature Belo
App, based in Argentina, said on Monday that it has partnered with
infrastructure provider OpenNode to enable Lightning Network access
to its users. Julie Landrum, OpenNode’s Head of Growth, stated that
the deal allows millions of people in Latin America to conduct
quick Bitcoin transactions. Last month, ConsenSys, the Ethereum
blockchain software startup, announced a solution that makes
blockchain technology scalable on the Ethereum Mainnet or for
private use, in conjunction with Mastercard. Related article |
Lightning Speed: Taproot And The Lightning Network, A Match Made In
Heaven Featured image from The Block, chart from TradingView.com,
and DeFiPulse
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