Mobile payments service Cash App integrates BTC Lightning payments

Mobile payments service Cash App integrates BTC Lightning payments

Another excellent news from the camp of Jack Dorsey. This time it concerns the popular CashApp application. As it turns out, although payments in Bitcoin have long been possible in it, now they can be made on the basis of Lightning Network. This significantly reduces their costs.

Words turned into action

Jack Dorsey has already emphasized for two years that the CashApp application requires integration with the Lighning Network system. So the question was not if it would happen, but when. The beginning of 2022 has become a breakthrough in this regard. Since a few days, users of the payment tool, available in the United States and the United Kingdom, can use Bitcoin’s tier two solutions. 

CashApp is part of the Block Company business, which Dorsey co-founded. The app has been available for use since 2017 and has as many as 36 million customers. Therefore, it is not surprising that Dorsey decided to expand the project so that in the face of fluctuating prices for BTC transfer in the first tier, users of the app can benefit from a much cheaper solution.

This is not, by the way, the former Twitter CEO’s first move in favor of Bitcoin this year. Ever since he took the helm of a wing of Block called Spiral, he has been actively involved in developing solutions to serve the Bitcoin network. We wrote about his recent activities in our post titled “Block jobs posted on LinkedIn, reveal plans Jack Dorsey has for Bitcoin”. Be sure to take a look to stay up to date!

Why is there a Lightning Network?

Bitcoin was created to make payments without intermediaries such as banks. However, it turns out that the mass adoption and the explosive demand occurring on the network can significantly drive up transaction costs. These reached their ATH in April 2021 at more than $62. An additional limiting factor is scalability, which allows only 7 transactions per second. The effect of this is that the largest of cryptocurrencies is more often seen as a carrier of value rather than a payment system. With help comes a second layer solution which is Lightning Network. It significantly increases the bandwidth of the network and the costs of the transactions are minimal.

It works thanks to the possibility of moving transactions from the main chain to the system based on peer to peer payment channels. The creation of such a channel provides unlimited payment options. This resulted in the amount of blocked funds on Lightning Network reaching its ATH of $216 million last November. Ultimately, by using a second layer, Bitcoin can be both a store of value and a payment system. 

Thus, the opening of CashApp to the Lightning Network, is great news for the app’s users, who gain wider access to the possibilities behind the first and largest of cryptocurrencies. 

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

More News

All articles loaded
No more articles to load

Knowledge Base

Polygon

What is Polygon (MATIC)?

Another coin worth looking at is Polygon (MATIC). It is especially liked by many investors. So what makes its popularity…
Shiba Inu SHIB

What is Shiba Inu (SHIB)

Shiba Inu (SHIB) is one of the most sought-after coins on the market. This is evidenced by its dynamic rallies…
Who is Satoshi Nakamoto

Who is Satoshi Nakamoto?

The world’s biggest cryptographic mystery remains unsolved to this day. It is speculated whether Satoshi Nakamoto is a single person…
solana

What is Solana (SOL)

Solana (SOL) is one of the hottest cryptocurrency projects on the market. Although it is a relatively young creation, it…
Cryptocurrency address formats

Cryptocurrency address formats

In earlier articles, we have, among other things, given you a brief overview of cryptocurrency wallets that you can apply…
Bitcoin ATMs

Bitcoin ATM’s

The most popular places to buy and sell cryptocurrencies are of course cryptocurrency exchanges. Others that are equally ambitious in…
Public and Private blockchains

Public and Private Chains

When analyzing the cryptocurrency market, we may come across terms related to blockchains. The two most popular types of them…
All articles loaded
No more articles to load

Analyses

All articles loaded
No more articles to load

Knowledge Base

Who is Satoshi Nakamoto?

The world’s biggest cryptographic mystery remains unsolved to this day. It is speculated whether Satoshi Nakamoto is a single person or perhaps the name of…

What is Solana (SOL)

Solana (SOL) is one of the hottest cryptocurrency projects on the market. Although it is a relatively young creation, it has already managed to gain…

Cryptocurrency address formats

In earlier articles, we have, among other things, given you a brief overview of cryptocurrency wallets that you can apply to your own needs. However,…

Bitcoin ATM’s

The most popular places to buy and sell cryptocurrencies are of course cryptocurrency exchanges. Others that are equally ambitious in capturing the market are applications…

Public and Private Chains

When analyzing the cryptocurrency market, we may come across terms related to blockchains. The two most popular types of them are public and private chains.…

What are block explorers?

In this article, we discuss a free online search engine that allows you to browse the contents of a blockchain database. We also discuss transaction…

Law and Trading in Cryptocurrencies

More and more countries allow the use of cryptocurrencies as financial- or business instruments. They are even allowed to be used as regular means of…

Taxation of cryptocurrencies in Europe

Cryptocurrencies are gaining popularity all the time and are slowly becoming a widely accepted means of payment. As more and more people are interested in…

What are cryptocurrency nodes?

Most cryptocurrencies operate on the principle of distributed transaction systems, running on a P2P, or peer-to-peer, network. In practice, this means that such a network…

How do Bitcoin Blocks work?

Bitcoin (BTC) is currently one of the most popular digital currencies in the world. How does it differ from the classic currencies used in everyday…
All articles loaded
No more articles to load