Bitcoin adoption gets a boost as CoinGate announces Lightning Network support for its over 4,000 merchants. As Lightning Network increases its capacity to 102 BTC, Bitcoin adoption is looking for bigger and better things in its future.
Bitcoin adoption gets a boost from Lightning Network
Bitcoin adoption keeps on rising with each passing day. A massive boost is coming with the Lightning Network as CoinGate, a payment processing startup is adding all of its 4,000 merchants to the off-chain system.
Bitcoin has been designed as a payment mechanism whose growth is slow paced but a sure one. Initially, with a few merchants accepting bitcoin, it has been easy for Bitcoin network to process payments. Later on, as the adoption increases the issues of scalability, higher fees and longer processing time arose.
Then came Lightning network that basically works as a layer on top of Bitcoin blockchain. Here, multiple transactions are secured on a “channel”, before network adds the compound transaction to the underlying blockchain eliminating the need to add every transaction.
Lightning network growing with 102 BTC
First introduced in 2015 by Thaddeus Dryja and Joseph Poon, Lightning Network enables scalable, instant Bitcoin/Blockchain transactions. Moreover, it offers features like low cost, cross-chain atomic swaps, and instant payments. There are a number of Lightning Wallets in the market along with companies that process transactions on behalf of merchants.
Lightning Network can confirm transactions in about milliseconds while reducing the fees significantly. It also boasts of its ability to process million or even billions of transactions per second.
According to the latest data, more than 12,000 channels and 3,369 nodes are contributing to this network. About six months back, its network capacity has been about three bitcoin which today has reached 102.64 BTC.
In the past 30 days, the node count has increased over 10% while no of channels has risen 6% and network capacity by 5%.
Adoption is the key to more attention & going mainstream
CoinGate first began the trial with Lightning Network in about 100 stores all over the world. Forbes reported CoinGate stating,
“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.”
Through its successful trial, CoinGate has been able to evaluate the potential risks related to off-chain payment method. However, during these 8 weeks of testing, the company was able to sustain high volume without any major errors.
Currently, CoinGate is not working with any US company but is expected to do so next year. As for the merchants that will be able to accept bitcoin payments include hosting service Bitlaunch, gaming store Mmoga.com, adult websites Livejasmin and Manyvids, and Swiss watch manufacturers Chronoswiss and Louis Chevrolet.
Though the market currently is not actively using Bitcoin to buy things due to speculation and its price experts believe for long-term growth, adoption is essential. Adoption will certainly increase people’s interest and will further take it mainstream.
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