Experimental Lightning Protocol Ready For Emerging Exchanges While Others Focus On Altcoins


Experimental Lightning Protocol Ready For Emerging Exchanges

Smaller, emerging exchanges are banking on The Lightning Network protocol even though it is not considered stable enough for retail use by many larger exchanges.

Coinbase and Binance, two large coin exchanges, are using The Lightning Protocol to add coins to their platforms. This is in stark contrast to how smaller exchanges focusing on localized, emerging markets are doing with the layer 2 protocol.

Zebpay, a Singapore based exchange, has recently started offering lightning wallet options. They decided to integrate it due to their users demand a way to be able to send lightning payments to external wallets.

Zebpay Handling All Channels On The Back End

Bitcoin users can now cash out their own crypto with no deviation and make almost immediate payment to any lightning-friendly wallet. Zebpay CEO, Ajeet Khurana, says that he wants to give his clients greater control and access to features. One such feature is to allow the creation of invoices.

Other options that Zebpay is looking at giving their users greater control over are channel management, routing, and recovery. He adds that greater user control of state management is also in the company's plans. He knows that this might be going against the grain when it comes to industry norms, but he feels it will pay dividend int he long run for Zebpay.

Larger Exchanges Refuse To Accept Lightning Payments

The larger exchanges have all repeatedly stated that they will not be giving users access to lightning enabled payments, as the technology is considered far from stable and not ready for large scale consumer use. Exchanges such as Coinbase, BitMex, Kraken, and Okex have all joined in this line of thinking.

Khurana has said that one of the key strategic plans of the company is, to begin with offering payment processing using lightning-enabled payments. This is key for users of Zebpay's platform as they have complained at in-person events that they do not have any exposure to other asset classes. Many would like exposure to asset classes such a real estate or stocks.

Global Use Cases Increasing

Zebpay has had to refocus its efforts on lightning payments because of the regulatory bumps it encountered in India. however, there are other companies around the world that are making more of a case for lightning payments. These global test cases are fueling interest for lightning payments according to industry experts.

Buda.com is a small Chile-based Bitcoin exchange that only transacts to the tune of $200 thousand dollars a day. Their 1500 monthly users have this same payment feature enabled last October. An engineer for Buda by the name of Alejandro Echevarria said that over 100 users have used the lightning service so far. The uses have been in everything from integration to channel management, and the additional cost to the exchange has only been $5000.
In a similar turn of fate to Zebpay, Buda's users in Colombia have found that banks will not allow them to purchase Bitcoin, with many not allowing any interaction with crypto companies.

In addition to its Colombian users, the exchange knows it's Venezulen expats need to be able to send Bitcoin to family in the impoverished country without relying on Venezuelan banks. These expats are found in its three principal markets of Peru, Chile, and Colombia.

Many of these users use the lightning payments to top off their cell phones using Bitrefill or to send remittances. The CEO has stated recently that the company plans to add both mobile lightning options and for people to receive payments themselves.

He finished off by saying that the medium-term goal was an experimental rollout of merchant processing services. However, he did not that they would need to keep a sharp eye out on the changing regulatory landscape.

https://bitcoinexchangeguide.com/bitcoin-bch-ethereum-and-litecoin-price-prediction-todays-top-crypto-forecast-analysis/

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