CoinGate, a Lithuania-based crypto payment processing gateway, is helping Bitcoin adoption go to a whole new level in Europe. The company recently announced that more than 4,000 businesses that are currently using the platform for processing merchant payments in Bitcoin will now get access to the Lightning Network. The move will help in solving scalability problems in cryptocurrency and will also make payment processing faster. The network will be available to the merchants immediately.
How Will Lightning Network Help Merchants?
The second-layer extension of the Bitcoin protocol, called the Lightning Network, helps in making payment faster and more cost-effective. It also does away with scalability problems in blockchain. CoinGate has completed the pilot of the system developed by Lightning Labs with a test group of 100 businesses. The feature was made available to all merchants during the TechCrunch Disrupt Conference in San Francisco last week.
The improvement also helps shoppers as they pay lesser fees for their transactions and get instant payment confirmations. Merchants can also ship their product instantly while being spared from fraud and chargebacks, which could happen because of slow transaction speeds in the original network.
Co-founder and CEO of CoinGate Dmitrijus Borisenka commented on the move, saying:
“CoinGate takes every opportunity to innovate and offer cutting-edge solutions to our users. We are keen believers in cryptocurrencies as a way to transact globally, and the Lightning Network, although still a fresh new technology, fits exactly in our vision of what Bitcoin should be in the future.”
You Can Buy Coffee With Bitcoin
The platform tested the new LN integration throughout summer and gained “overwhelmingly positive response” from the users. Borisenka said that the team was surprised to find tweets about their new test feature implementation in Oslo’s Kasbah Bar. He added:
“You may have heard critics claiming, ‘you can’t buy coffee with Bitcoin.’ Well, we’re not sure about coffee, but buying beer with Bitcoin within a second for zero fees is definitely possible in Oslo.”
The integration is yet to be fully tested for live use, but the company claims that it faced no major errors during the eight-week pilot program.
Lighting Network connects nodes or users to payment channels that run independently of the primary Bitcoin network. This helps in creating faster off-chain transactions, keeping costs almost negligible, and can be used to create a higher volume of micro-transactions, which could be used at merchant outlets.
CoinGate Brings Bitcoin Lightning Network to 4,000 Merchants in Europe was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.