CoinGate to Launch Bitcoin Lightning Network Payments for Merchants
The much-awaited Lightning Network (LN) settlements for Bitcoin are finally here, thanks to CoinGate, a Lithuania-based digital currency payment processor. By doing this, the firm becomes the first platform to offer such a service. This was confirmed through a post on the Reddit online forum. Specifically, CoinGate announced that it was currently running the LN in a sandbox environment while conducting further tests to ascertain its readiness for deployment.
The press release waxed lyrical on the upcoming development, lauding it as the one of the most significant milestones within the Bitcoin development community. Moving forward, the announcement noted that LN is currently suited to technically advanced users. Thus, CoinGate is partnering up with a select group of prospective clients who have expressed desire to become early adopters of this exciting project.
Despite being a minnow, CoinGate has always been on the forefront when it comes to embracing the latest technological developments within the Bitcoin blockchain. Notably, the payment processor has already integrated SegWit support and has been ben batching transactions for over three years. Contrariwise, household names such as Coinbase and BitPay are known for their lackluster approach in adopting new technology.
While it has only been existence since the turn of the year (2018), the LN Bitcoin mainnet has gained substantial traction amongst investors, both from the corporate world as well as private individuals. Therefore, by implementing this protocol, albeit still in its developmental stages, CoinGate has joined a league that comprises of a chosen few.
Earlier this year, Blockstream launched a designated LN shop, a move that was met by criticism due to being untried and its volatile nature. However, CoinGate opted for a safer testing environment, the sandbox. For this reason, CoinGate’s LN is more alluring to test users, because it acknowledges the potential shortcomings of this protocol.
Still, within the Reddit post, CoinGate warns users of the potential presence of bugs, both within the Lightning Network as well as during its deployment. Moreover, the post appeals to test users to identify and report such bugs to the developers for fixing before the LN is made available to the public.
Recently, the usage of the Lighting Network protocol passed 2,000 nodes, with the network capacity hitting the $163,000 mark. Furthermore, a comparison between LN and credit payment methods proved that the former saves considerable amounts of money as compared to the latter.
As mentioned above, CoinGate always strives to implement the latest technologies to better its service delivery. As a result, the company, although still small, has been gaining popularity in the investor community within the recent past. Bing the pioneering adopter of the LN protocol, it is expected that CoinGate will finally make its breakthrough and become a prominent cryptocurrency payment processor.