111 Interactions, 4 Today
The Lightning Network is the premier Bitcoin scaling option, offering layer-two transaction capabilities independent from the main Bitcoin network.
Cryptocurrency exchange on a peer-to-peer basis Paxful has integrated the Lightning Network into its platform, allowing its 7 million users to conduct Bitcoin (BTC) transfers in real time.
According to the company, the new functionality allows users to send and receive BTC from their Paxful Wallet in a matter of seconds and for a fraction of the cost of traditional blockchain transactions.
Paxful co-founder and CEO Ray Youssef called Bitcoin “the best financial choice,” but admitted that scalability concerns could stymie adoption. According to him, the Lightning Network offers Bitcoin’s best chance of obtaining the scalability required to make microtransactions a reality.
The global online microtransaction market was valued at roughly $34.6 billion in 2021 and is expected to grow at a compound annual growth rate of 10% over the next four years, according to industry research. The video game industry and the virtual goods and services that it propagates are becoming a major catalyst for the growth of microtransactions.
Lightning Network is being developed to facilitate Bitcoin payments and allow users to quickly and reliably engage in off-chain transactions through a second layer. Lightning currently boasts over 26,500 nodes for a network capacity of 2,468.93 BTC at the time of writing.
Bitcoin has built out a strong niche as an investable asset in the absence of a functioning transaction layer. Creating an electronic monetary system, on the other hand, was a significant component of Satoshi Nakamoto’s 2008 Bitcoin white paper. (Intriguingly, and as recently stated, the Bitcoin founder’s forum posts and correspondences used the terms “cash” and “gold” interchangeably.)
There are compelling reasons to anticipate that the Lightning Network will find further application on the Paxful trading platform. As of April 2021, the P2P exchange had processed more than $5 billion in volume, with Africa — a continent that is rapidly adopting Bitcoin as a medium of trade — emerging as one of its most important marketplaces.