Category Archives: Lightning Network

Auto Added by WPeMatico

Bitfinex Users Can Use Bitcoin Lightning Network to Shop

  • Bitfinex has announced a partnership with Bitrefill, allowing users to instantly buy goods and services with Bitcoin

Only days after Bitfinex announced that it had become the first major crypto exchange to integrate the Lightning Network, which facilitates instant deposits and withdraws for practically zero fees, Bitfinex has announced that it has partnered up with Bitrefill so that users can instantly buy goods and services.

Essentially, Bitfinex users can now use their wallets to shop Bitrefill’s catalog of 2,000 pre-paid gift cards and vouchers, which includes gaming, dining, entertainment, travel, and cell phone refills for 170 countries. Payments between Bitfinex and Bitrefill will occur instantly via the Lightning Network.

This is a positive step for Bitcoin adoption and may offer a glimpse of how Bitcoin commerce will work in the future. In the same way that banks give customers different tools to shop with fiat, crypto exchanges can give customers tools to shop with cryptocurrency. The Lightning Network is perfect for retail and e-commerce sales too, since there is no waiting and practically no fees.

Indeed, Bitfinex CTO Paolo Ardoino says, “Bitcoin’s use as a means of payment represents an important milestone in the inevitable journey towards mass adoption. This is why the Lightning Network is so important”. Thus, the partnership between Bitfinex and Bitrefill was created with mass crypto adoption in mind.

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post Bitfinex Users Can Use Bitcoin Lightning Network to Shop appeared first on BitcoinNews.com.

Bitfinex First Major Crypto Exchange to Integrate Lightning Network

  • Bitfinex has become the first major cryptocurrency exchange to integrate the Lightning Network, facilitating instant deposits and withdraws
  • Capacities are 1.5 BTC for withdrawals and 3.5 BTC for deposits

Bitfinex has announced that they are now running a full Lightning Network node, which allows customers to open up payment channels for instant deposits and withdraws while paying practically zero transaction fees. This makes Bitfinex the first major crypto exchange to integrate the Lightning Network.

The Lightning Network is a second-layer scalability solution for Bitcoin that bypasses the blockchain, which means that no block confirmations are needed. Blockchain transactions are only needed to open and close a Lightning payment channel. This is much more efficient than the regular situation on crypto exchanges where Bitcoin deposits require 1-6 confirmations, which take 10 to 60 minutes on average, but can take hours or over a day during times of network congestion. Also, regular Bitcoin transactions can have significant transaction fees.

Now with Lightning Network customers can instantly deposit or withdraw Bitcoin, creating a much more favorable situation for traders who are trying to conduct arbitrage or buy crypto at a certain price. Oftentimes, market prices fluctuate while a Bitcoin deposit is confirming, which can cause a trader to miss opportunities.

Also, the main caveat of the Lightning Network is that payment channels have low capacity, typically less than USD 600, but Bitfinex has a fairly high capacity of 3.5 Bitcoins for deposits and 1.5 Bitcoins for withdraws.

This is a major step for global Lightning Network adoption, and Bitcoin adoption as well, since the Lightning Network makes it possible to use Bitcoin for instant payments in a retail environment, as opposed to regular Bitcoin payments where confirmations can take too long.

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post Bitfinex First Major Crypto Exchange to Integrate Lightning Network appeared first on BitcoinNews.com.

Tokens on Bitcoin Soon Possible via Lightning

Tokens on Bitcoin Soon Possible via Lightning

The search for a secure alternative to the very popular ERC-20 tokens on Ethereum has turned up an unexpected solution: issuing tokens via Bitcoin’s Lightning Network second layer protocol.

A CoinDesk article reports that BHB Network co-founder and staunch critic of Ethereum Giacomo Zucco has hit upon the solution that he claims could change the game for entrepreneurs via a better token-minting protocol:

“If ethereum is going to die eventually, then we have very high hopes that this will be sustainable long term.”

He has named the open-source token project as Spectrum and it already benefits from several powerful names in the industry such as investors Fulgur Ventures and Poseidon Group, and startups such as Bitrefill and Chainside. Even crypto exchange Bitfinex has thrown its weight behind it, all of them keen to change the prevailing mindset about Bitcoin’s slowness for experimental tech.

Bitfinex CTO Paolo Ardoino already commits to issuing a Tether version compatible with Spectrum before the end of 2019, adding that “Bitfinex will continue supporting Lightning projects and features in our platforms”.

Spectrum will use RGB colored coin standards that will be tied to actual Bitcoin so that tokens can be issued several layers above it. In effect, instead of competing with sidechains like Liquid, it complements them and enables cross-currency swaps within Lightning channels.

This is very different from tokens on Ethereum, which are all operated via smart contracts and has built-in support for complex functions. This, according to ConsenSys employee Gregory Rocco, is why colored coins never got popular, since they required external coordination.

Zucco says:

“If you want to do something with tokens, we think Layer 3 is the right place to put it. With lightning now you can be competitive, fast, creative, reckless.”

 

BitcoinNews is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews on Twitter: @BitcoinNewsCom
Telegram Alerts from BitcoinNews: https://t.me/bconews

Image Courtesy: Pixabay

The post Tokens on Bitcoin Soon Possible via Lightning appeared first on BitcoinNews.com.

Bitcoin’s Lightning Network to Introduce Fraud-Busting “Watchtowers”

Bitcoin's Lightning Network to Introduce Fraud-Busting _Watchtowers_

“Watchtowers” will soon appear on Bitcoin’s second layer Lightning Network implementation and are the much awaited next step in improved security against fraud.

The experimental network seeking to make Bitcoin payments faster and cheaper have long been missing a crucial piece of fraud-preventing measures, and a network of watchtowers aims to solve just this when the next update, version 0.7 of the LND software is released some time this month.

The issue stems from the need to constantly remain online when using Lightning to ensure the counterparty in a channel won’t steal the funds inside a Lightning channel. Most normal users would never be expected to do this, however, so a watchtower could potentially do this by watching for previous “states” being broadcast.

In essence, if a malicious actor broadcasts an old transaction to try and give themselves extra funds, the watchtower catches this and punishes the actor, hence outsourcing its anti-fraud functionality so users don’t have to.

Lightning Labs head of cryptographic engineering Conner Fromknecht, who is the cryptographic engineering head at Lightning Labs and the driver behind watchtower implementation discussed the implementation designs comprehensively at a conference last April. Lightning Labs CTO Olaoluwa Osuntokun explained to CoinDesk:

A big factor also [in my opinion] is that now we have a direct deterrence in place against any possible breach attempts, now that the tower code is out there in the open, an attacker now has a very strong disincentive against attempting an attack since it’s very possible that the potential victim has a tower watching their back.”

Osuntokun also says that their watchtower code can be run by anyone: “The importance of this release is that once deployed, any routing node can run their own tower to protect their infrastructure, also any business using [lightning network] today can also start to run towers to protect their nodes.”

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Image Courtesy: Pixabay

The post Bitcoin’s Lightning Network to Introduce Fraud-Busting “Watchtowers” appeared first on BitcoinNews.com.

CoinShares: Bitcoin Simple, Elegant, Hard to Replicate

CoinShares: Bitcoin Simple, Elegant, Hard to Replicate

The chief strategy officer at CoinShares, Meltem Demirors, has told Ran Neuner on CNBC’s Crypto Trader that despite all the challenges and hurdles faced by Bitcoin in the beginning, its constant development and continued focus on finesse has meant that it remains a simple yet elegant technological innovation that will be difficult to replicate.

As AMBCrypto reports, Demirors said that Bitcoin fought off consensus issues and even the ICO boom in 2017, during which altcoins claimed to be superior to Bitcoin in many ways:

“USD 8.6 billion went into top 10 ICOs, the largest of which was EOS. Actually, for the last few years over USD 30 billion has gone into protocols. I think a lot of it is people talking about the issues of Bitcoin, like its too expensive, too slow…  and started designing all these protocols, that tend to solve these problems that Bitcoin has.”

She pointed out that many of those altcoins born in the boom era eventually faltered because they were not pragmatic and did not understand how to manage funds. Without actual product and development, they were nothing more than pump and dump schemes, losing investor money on the false premise of displacing Bitcoin.

Demirors reflected:

“I think a lot of these protocols raised on these premises ‘We’re going to kill Bitcoin because we have all these features that make us better than Bitcoin’ not realizing that it took Bitcoin ten years to get Bitcoin where it is. It is simple and very elegant and very hard to replicate Bitcoin.”

Demirors also dismissed the Bitcoin scalability issue, believing that the Lightning Network, Taproot implementation, and Schnorr signatures were all coming upgrades to ensure Bitcoin would scale, be more private and be more secure. But while the network value of Bitcoin mattered, she said it was the collective community of Bitcoin that would ensure its future was always bright and strong.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post CoinShares: Bitcoin Simple, Elegant, Hard to Replicate appeared first on BitcoinNews.com.

Pay for Your Scottish Rickshaw Ride with Bitcoin

Pay for Your Scottish Rickshaw Ride with Bitcoin

Yahoo Finance has reported on the story of how a rickshaw company in Scotland is accepting Bitcoin payments via the fast and cheap second layer solution for Bitcoin called Lightning Network.

The Rickshaw Touring Co, which has five to ten crypto-enabled pedal rickshaws touring the streets of Glasgow, has partnered with startup Fastbitcoins.com, to offer this option and is considering an expansion of the service.

Passengers can still opt to pay their fares in cash if they prefer, and can even buy Bitcoin vouchers during the journey via a Point of Sale terminal operated by the rider. Bitcoin users can of course pay near instantly with Lightning. Fastbitcoins Managing Director Danny Brewster said:

“This is a fun concept, and with it we are trying to show the general public how Bitcoin can be made readily available and easy to use. Once consumers understand how easy it is to obtain and use, coupled with the added benefits of simply holding Bitcoin itself, more and more people will build infrastructure to help Bitcoin fulfil its potential on a global scale.”

Ride hailing and Bitcoin apparently isn’t an original idea, as Brewster admits to having thought about it before:

“I set about building the solution on my own, with no budget, no team of developers or high flying executive team. This puts us in a position to scale effectively.”

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Pay for Your Scottish Rickshaw Ride with Bitcoin appeared first on BitcoinNews.com.

Teen Rapper Lil Pump Pushes Online Merchandising with Bitcoin

Forbes 30 Under 30 newbie teen rapper AKA Lil Pump is moving with the times making purchases on his website available to Bitcoiners.

The 18-year-old Colombian-American rapper Gazzy García, who now has 1.2 million followers on Twitter, and if that’s not enough, another 17.8 million on Instagram, is giving his merchandizing a 21st century feel with Bitcoin payment now being available to fans after memorabilia.

The fact that fans can now pick up their Lil Pump T-shirts or keychains online with Bitcoin is sure to meet with approval with young Bitcoiners. More importantly, by opening up to blockchain technology and accepting Bitcoin payments on his online store, he is sure to attract new adherents to these technologies that otherwise would be limited to purchasing using online store cards or debit cards.

The move coming after YouTube’s number one star PewDiePie moved to a decentralized platform is certainly in line with artists starting to pick up on young adopters as a new market for crypto. Earlier this month the Swedish YouTube star found a new home on blockchain where his 94 million followers can live stream his latest offerings on DLive, built using blockchain protocol Lino and currently supported by 3 million monthly active users, and 35,000 active streamers.

Lightning Network has made Lil Pump merchandizing payable with Bitcoin thanks to artist’s partnership with OpenNode. The Lightning Network is starting to feed back into the younger community as it is primarily used by younger crypto owners for mini transactions such as music downloads and coffee. It’s still a good way of spreading cryptocurrency awareness throughout the community.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Teen Rapper Lil Pump Pushes Online Merchandising with Bitcoin appeared first on BitcoinNews.com.

Bitfury Pushes Lightning Network Adoption with New Targeted Products

Bitfury Pushes Lightning Network Adoption with New Targeted Products

IT service management company Bitfury has launched a bundle of network business products with the aim of boosting the capacity of the Lightning Network.

As per a blog post from the Bitfury Group, the new Lightning Network compatible tools that have been made available include: an open-source Bitcoin wallet, a public node to facilitate and aid new payment channels, additional developer tools, and a hardware terminal, payment processor and e-commerce software bundle for merchants.

The Lightning Network acts as a second layer over the Bitcoin blockchain, with developers claiming it can provide the solution to the cryptocurrency’s scalability issues. The project is still in its early stages, however, and has as of yet failed to reach the levels of mass adoption it hopes for in order to succeed as a payment network that can be used practically for everyday expenditures.

These new tools from Bitfury are a way of attempting to increase levels of adoption by making the network more accessible to users, and in particular to attract the merchants its need to make its ambitions viable. The blog post describes them as a way to ”bring every step of the business cycle onto the Lightning Network”.

Several notable features from the Peach Wallet include the ability for users to create invoices and set up reoccurring payment.

The new products were developed by Lightning Peach, the engineering and research team from Bitfury.

#LightningNetwork https://t.co/Q0CaYRhLWD observed:
5,606 nodes (2,781 with active channels)
21,518 channels
560.388 BTC capacity ($2,006,293.84)

new in the past 24h:
25 nodes, 511 channels
median node capacity: 0.014 BTC ($48.66)#Lightning #LN #bitcoin $BTC

— Lightning Network statistics ⚡ (@LNstats) January 23, 2019

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bitfury Pushes Lightning Network Adoption with New Targeted Products appeared first on BitcoinNews.com.

Fees Spike as Market Dips, Prompting Rapid Growth of Bitcoin Lightning Network

Fees Spike as Market Crashes, Prompting Rapid Growth of Bitcoin Lightning Network

The Bitcoin Lightning Network saw an unprecedented increase in capacity in terms of Bitcoin and the number of open channels in the two weeks from 12 November to 26 November 2018. The capacity of the Lighting Network rallied from around 110 Bitcoins to 460 Bitcoins, while the number of channels spiked from 13,000 to 16,500.

The cause of this increase in adoption becomes clear when looking at the market behavior during the same time. Bitcoin crashed from USD 6,500 to USD 3,500, and the increased volume during this crash caused Bitcoin transaction fees to exceed USD 1 on 20 November. The purpose of the Lightning Network is to be a scalability solution so that Bitcoin can handle an increased amount of transactions while keeping on-chain transaction fees low. It appears the Lightning Network has fulfilled this objective mission during the crash of November 2018.

The Bitcoin Lightning Network functions via a smart contract that creates a lightning channel, where a user deposits Bitcoins into the smart contract, making them become usable on the Lightning Network. A smart contract also closes the channel and the Bitcoins are disbursed to their rightful owners. This directly ties lightning channels to the Bitcoin blockchain, but only two transactions are needed on-chain per channel for the Lightning Network to operate. In between the opening and closing of a channel, there can be infinite transactions within the channel, and these are all off-chain with practically zero transaction fees.

This makes the Lightning Network an attractive scalability solution for Bitcoin, since if blocks ever reach capacity consistently and transaction fees begin to rise, like what happened during the crash of November 2018, then Bitcoin users can choose to start using Lightning to avoid fees and waits.

It is unknown just how high transaction fees would have gotten in November 2018 if the Lightning Network did not exist. It is becoming clear that the rapid increase in capacity helped alleviate the higher than normal transaction fees, and as of early December, transaction fees are declining towards baseline. During the big rally of December 2017, transaction fees exceeded USD 50 for several days, demonstrating the sort of crisis that could happen in the absence of the Lightning Network.

The alleviation of Bitcoin’s transaction fees and simultaneous rise of Lightning Network capacity may be a sign that it has approached maturity and can handle any sort of transaction fee crisis in the future. This will ensure for the long term that Bitcoin does not become unusable due to rising transaction fees.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: pixabay

The post Fees Spike as Market Dips, Prompting Rapid Growth of Bitcoin Lightning Network appeared first on BitcoinNews.com.

Lightning Network Sees Massive Increase to $2 Million Capacity

Despite the slump in the Bitcoin market this week, the Lightning Network (LN) has hit an all-time high network capacity, currently handling USD 2 million in Bitcoin.

The LN is a payment protocol that operates as a second layer over the Bitcoin blockchain to facilitate faster transactions between nodes. Users argue that it could be the solution for Bitcoin’s scalability issues.

While Bitcoin’s value may have depleted over USD 1,000 this week currently standing at just over USD 4,400, the LN has hit an all-time high operating capacity of USD 2 million, nearly a 300% increase. The number of nodes has risen to 4,136 at time of press, adding over 8%, while the number of channels has reached 12,224.

A Reddit post also indicates the growing scale of the LN on an anecdotal level. Reddit user u/DistributedFutures shared a photo of a shop in Melbourne displaying a rare Bitcoin LN acceptance banner, with commentators comparing the network to Bitcoin’s rise in 2012.

The original poster noted it as an indicator the LN ”isn’t vaporware, it’s real and available at retail”. It was also written that Mind Games where the sign was displayed is on one of the busiest streets in the Australian city of 5 million people.

The network has faced criticism, however, over the speed of its growth in relation to its technical abilities. In July this year Andreas Brekken, an associate and supporter of Roger Ver and his Bitcoin hard fork Bitcoin Cash (BCH),  began operating a powerful LN node that took control of 49% of the total network capacity which then stood at USD 427,000.

Controlling such a large portion of the network capacity does not necessarily present a high-risk to the network, although many interpreted the move as an attempt by Brekken to undermine the network.

Bitcoin Cash is highly critical of the LN as it is a key competitor to BCH’s success should it find wide-scale success.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Lightning Network Sees Massive Increase to $2 Million Capacity appeared first on BitcoinNews.com.