Coingate Starts Bitcoin Lightning Network Payments For Merchants July 1
Coingate announced on June the 25th that it is going live on their Lightning Network (LN) mainnet. The intention is to let merchants accept LN payments. This is the first Bitcoin processor to implement this new payment system that aims to revolutionize and change how the Bitcoin network works.
Coingate To Implement Lightning Payments
Bitcoin has been suffering bottlenecks, high fees and slow transactions when it had an important number of transactions. This showed that Bitcoin was not ready to be widely adopted by merchants and individuals. There were times that was impossible to send and receive small amounts of money.
In order to help the network scale, developers came with the idea of Segregated Witness (SegWit). This temporary solution helped the network reduce the fees and increase the number of transactions that it is able to process.
But the ultimate solution to scale the Bitcoin network is known as Lightning Network, which enables much faster and cheaper transactions between users. The LN connects users with different payment channels that work outside the Bitcoin Network.
Currently, there are 2,500 LN active nodes and over 7,500 channels opened. The transactions made on this network are not immediately settled on the Bitcoin network. The information of the transactions may be settled once the channel is closed.
Coingate has been working in order to implement the LN. The company explains that since the beginning, its intention was to follow the technology and implement the latest developments in the space. It is important to mention that Litecoin lightning payments will also be available.
Coingate explained on its blog about LN implementation:
“Last month, we launched Testnet LN payments in our demo shop. Things have been going really smooth, and thus we are planning to more on to the mainnet very soon. Our pilot launch with a select group of merchants is starting on July 1, and we aim to enable all of our merchants to start accepting Bitcoin and Litecoin Lightning Network payments with our help soon after.”
The company wants to implement LN as soon as possible to give a message to the community and have a big impact in the future. Coingate has been always working in order to implement the latest technologies around Bitcoin, like SegWit in December 2017. Now it will become the first cryptocurrency payment processor using LN.