Cash App Is Bringing Bitcoin Lightning Network To Its 36 Million Users

Bitcoin has been available on the Cash App since late 2017. But the mobile payment provider is ready to implement the Lightning net to its millions of users.

The leading cryptocurrency is often accused of being a dinosaur and unable to handle the technical demands of a high-performing payment network. That being so, critics argue that its main use case, as a store of value, makes it a one-dimensional offering.

As a Layer 2 solution, the Lightning Network somewhat addresses these concerns. And as more providers join, Bitcoin is increasingly viewed as a payment system.

What is the Bitcoin Lightning Network?

From a payments point of view, Bitcoin is well below the mark that it has a five transactions per second (TPS) and an average transaction fee of $ 1.79.

To be fair, $ 1.79 is relatively low compared to the highs of April 2021, when the transaction cost on average $ 62.78. However, anything over a few pennies to transact is unfeasible as a mass-adopted payment solution.

Enter the Lightning net, which provides high scalability and low transaction cost through its Layer 2 solution.

It works by pulling main chain transactions into peer-to-peer “payment channels” between two parties, such as a shopper and a coffee shop. Once the channel is established, an unlimited number of transactions can go through the channel instantly.

The payer must block Bitcoin on the network to open a payment channel. Once blocked, the recipient can invoice amounts according to the cost of goods and services sold.

The fees are derived from a combination of routing charges to route payment information between Lightning Nodes and Bitcoin transaction fees to open and close channels. But they are still significantly less than the direct transactions of the main chain.

The total blocked USD value (TVL) on the Lightning Network peaked at $ 216 million in November 2021. Since then, TVL has declined significantly, reaching $ 140 million today.

This, of course, is related to the fall in the USD price of $ BTC, as evidenced by the amount of Bitcoin blocked (currently 3,338k) which peaked and remained stable during the recession period since November 2021.

Total value locked on Bitcoin Lightning Network
Fountain: defipulse.com

A significant part of the 2021 increase is likely due to the Chivo Wallet, based on El Salvador’s Lightning Network, going online in September 2021.

More Payment Providers Join Lightning Network

In a sign of growing adoption, Cash application is configured to give your users access to the Lightning Network.

Furthermore, with the Cash App increasing its number of monthly active users by more than ten since 2016, the use of Bitcoin will benefit enormously. Unfortunately, Cash App is currently available only to US and UK users.

Cash app users
Fountain: businessofapps.com

based in Argentina good app announced Monday that it will partner with infrastructure providers OpenNode to offer its users access to the Lightning Network.

OpenNode Growth Director Julie Landrum said the deal opens instant Bitcoin transactions to millions in the Latin America region.

“We are incredibly excited about the integration of OpenNode with the Belo application, as this means that millions of people in Latin America will have the ability to make instant transactions in bitcoin, fostering adoption in a region where bitcoin growth is skyrocketing.” .

Thanks to the Lightning Network, Bitcoin, as a viable payment solution, will expand as more payment providers recognize the trend.

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Source: https://cryptoslate.com/cash-app-is-bringing-the-bitcoin-lightning-network-to-its-36-million-users/

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