He. She Bitcoin (BTC) The Lightning Network is the most promising technology for expanding Bitcoin into a global payment network. With 7 transactions per second and a block time of 10 minutes, it is unrealistic or rather impossible to make daily payments with Bitcoin. It is not practical to wait at Albert Heijn for your transaction to be included in a new template. For online payments, Bitcoin can still work and for large payments as well. But in order to become a global payment network, Bitcoin will have to expand in other ways.
The Lightning Network makes it possible to make direct payments with bitcoin, and the network can theoretically process millions of transactions per second. Yesterday, the billion-dollar company Block (formerly Square) announced that the Lightning Network had become part of its Cash app. A payment app that has 70 million users and can currently be used in America and England. In my opinion, Jack Dorsey, CEO and Bitcoin, is taking a huge step towards Bitcoin adoption.
Why this is a big deal for Bitcoin
Cash is currently the most popular financial app on the US App Store and has more than 70 million users. All of these users can now buy and sell bitcoin via the Lightning Network, but people can also pay with bitcoin. This large block connects to the Lightning Network in one fell swoop and in theory you can pay with bitcoin wherever they accept Lightning. The next step, in my view, is for the Block to make a connection between the US dollar and Bitcoin.
What does the link between the US dollar and Bitcoin mean? Very simple: soon the user will be able to pay in Bitcoin using the Cash app and the retailers will get US dollars on their account. For example, if you buy coffee with your bitcoin at Starbucks in the US, the cash app in the background automatically exchanges your bitcoin for US dollars and then converts it to Starbucks. This way, Starbucks won’t need to know you paid with bitcoin. This way you can live on the bitcoin standard, without the rest of the world having to keep up.
Additionally, integrating the Lightning Network into the Cash app could make it easier for people to buy bitcoins. Transactions on the Lightning Network are practically free, which in theory makes it very easy to convert a portion of your salary into Bitcoin every month, for example. Something Block has been promoting a lot lately with athletes choosing to pay themselves in part with bitcoin through the Cash app.
Accept and approve Bitcoin at the touch of a button
Another interesting aspect of integrating the Lightning Network into the Cash app is that in theory it makes it very easy for merchants to accept bitcoins. The Block has a so-called “Point-and-Scan to pay” option within the Cash app, with which you can now pay in dollars quickly and easily. It’s not hard to imagine that this is likely to be possible in the short term with bitcoin as well as the dollar.
Currently, the retailer has to set up a separate payment system in addition to the existing payment systems to accept bitcoin. By integrating the Lightning Network into the Cash app, retailers will soon be able to accept bitcoin at the touch of a button in the same way they accept dollars.
You can imagine that it is not practical for a retailer who is not technically inclined to accept bitcoin. You have to look into the material for that, it’s also not helpful in terms of management if you’re working with two separate payment systems. Incorporating the Lightning Network into the Cash app could bring big changes, making 2022 the year of Lightning Network adoption.
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