New JP Thor Data Shows Lightning Network Growth is Outpacing Apple Pay In Payments Showdown
If you are interested in the Lightning Network, you should know that some recent tests appoint that this can be one of the best payment solutions out there. If you do not believe this, here is a test made by JP Thor named as “Lightning Showdown”, which might make you change your mind.
On the blog post, the Bitcoin enthusiast has compared the Lightning Network to some other popular payment methods like Apple Pay and the results are actually pretty incredible, especially when Apple Pay is compared to the LN in terms of onboarding merchants, which makes the LN even faster in comparison in some aspects.
The Lightning Showdown
Thor has decided to take a challenge which was made by another crypto celebrity, Anthony Pompliano. He found out that the transactions tend to be very quick, however, one has to take into account several factors when comparing transactions in order to be sure that they are actually faster.
To do it, Thor considered the full picture and looked at the onboarding for users and merchants both. Interestingly, he found out that popular centralized payment networks are often a lot faster for the users but they are not so much on the merchant’s part.
In order to make a fair comparison between all the solutions, he tested three different payment solutions to writing his analysis. First, he used Mastercard Debit Card with Apple Pay (using the Australian UpBanking), then the Wallet of Satoshi for the Lightning Network and BlueWallet.
All the process of setting up the wallet and using it for payment was included in the test, which means that not only the speed of the transaction per se was taken into account.
Setting Up The App And Using It
First, let’s talk about the Apple Pay Debit Card payments. What Thor has found out is that the whole process could be done in only five minutes. This includes the download of the app from the store, setting up all the Know Your Customer requirements (which was incredibly done in only two minutes) and registering.
He sent funds and received them from his bank account and the payment took around a minute. So the final time was: one minute for downloading the app, 2 minutes for setting up the account, 1 for being ready to make mobile payments and one minute to add the payment. He had to acknowledge that the service was pretty good and fast.
Wallet of Satoshi also worked in about five to six minutes, which made it just a bit slower than the other option. Part of the reason is that the app is still on Beta, which does not let it be available on the main part of the store, but via the Apple TestFlight App section.
The KYC procedure was needed but it used online identity validation and it was almost instant, so it was very easy to do. Funds are added via PayID. In the end, downloading the app took a minute and a half, setting up was three minutes and a half but the payments were immediate and adding funds took only a minute. Around five to six minutes in total.
The Lightning Network is so fast.
I wouldn’t be surprised if transactions go from wallet to wallet faster than the time it takes for a credit card machine to process the chip on a card that gets inserted.
Someone should run a test to time it and record the whole thing on video.
— Pomp 🌪 (@APompliano) February 5, 2019
Using the custodial version of BlueWallet was the hardest of the alternatives, mostly because the app is made specifically for tech-heavy users. The sovereign version required an LNDHub, so he used the custodial version instead. The custodial solution was ok but much slower than the other alternatives.
Setting up an LNDHub would take hours, but operating the custodial solution was faster, just not that much. The transaction took thirty minutes to be processed, which made the process quite slow and cumbersome.
Apple Pay could only be used if the merchants supported an Eftpos terminal, but it was generally very widespread. The transaction took less than 20 seconds and a merchant had to be set up, the device had to be prepared and payment was approved quickly.
Using Wallet of Satoshi, the merchant set up was made in 15 seconds, followed by the preparation of the device and the payment, which made the whole process last just under 23 seconds, basically the same time.
Finally, merchant onboarding was tested. This was the final victory for Bitcoin. Eftpos had fees of 1.9% and the device was shipped in two to seven business days. However, the BTCPayServer of a self-sovereign merchant could be set up with a PoS solution in just under an hour and it does not charge fees, which makes it the best choice for merchants.
Bitcoin Payments still have a lot to move forward, but they are starting to get competitive and to become a major option, especially for merchants. Because of this, there is a good chance that Bitcoin adoption may grow in the future.
However, it would be way too naive to believe that the software does not need to improve a lot in order to be more user-friendly, especially for merchants.