Bitcoin and cryptocurrency Apps, which make instant spending possible thereby making it easy for vendors to get euros or dollars on the other side is the key to making crypto become a day-to-day thing.
It is a good deal to be able to pay for items that are priced in USD with BTC. The same feels true for all other fiat currencies. The idea of using Bitcoin for day-to-day payments to pay just about for anything is a puller use case for mass adoption. And if all of these things happening at Lightning speed and for a cheaper price there is nothing like that.
Lightning payments are making this possible. The competition is brewing and there are solutions which provide for payments in just a few milliseconds. Developers are competing to scale and provide speed to the process.
In 2016, the White Paper for Lightining Network proposed the idea of faster and cheaper transactions without having to change the block size. In this process, the Lightining Network creates a second layer on the top of the Bitcoin blockchain with user-generated channels, thus making it possible to send payments back and forth without having to trust the counterparty.
Bitcoin (BTC) Transactions in Low or Negligible Fees
Lightning transactions are between well-established multi-signature wallet channels; therefore, there is no need to broadcast to the whole network and the transaction happens instantaneously. Since, there are no miners in the process, there is no need for incentivizing and therefore it is possible to make transactions happen with low or negligible fees.
Once a channel is set, it is possible to make unlimited numbers of transactions possible. And, this can be done without having to revisit the information stored in the blockchain. An updated balance sheet is signed by both the parties to document how much of BTC is stored in the wallet that belongs to each.
Sydney Ifergan, the crypto expert tweeted: “Bitcoin (BTC) Lightning Network is undergoing advances by the developers introducing new possibilities. Mass Adoption might be just around.”
Things got better with the adoption of SegWit, which provided the malleability fix. Thereby making it possible to transact big on the Lightning, which should have otherwise gotten done on the original layer. Thus Lightning makes micro, small and big size transactions a possibility.
Payment systems are competing to capture and dominate the market. The scaling debate continues to be around and there is lot of technological innovations brewing, and we need to wait around to see if it is practical to replace the fiat systems.
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