The Lithuanian Gateway network CoinGate turned into a full-fledged member of the Lightning Network. The organization gave a chance to 4000 commercial enterprises to accept Bitcoin Lightning Payments through their platform. The deal can prompt the speed of Bitcoin penetration, as the payment facility can be expanded and strengthened.
Bitcoin was at first designed as a payment system, and dealers who acknowledged bitcoin were appreciated by early adopters. When it turned out to be more popular, many issues emerged because low block sizes restricted the transaction bandwidth. It caused delays in transaction handling times and higher expenses which left numerous merchants to leave Bitcoin.
The Lightning Network makes a layer over the bitcoin blockchain, where exchanges can be passed forward and backward before being added to the underlying blockchain.
It means the speed of the transaction has surprisingly increased while costs are fundamentally decreased.
CoinGate and LN came in the limelight in May this year when the gateway network began testing the innovation using a “test” online store. In July, CoinGate had conducted a trail of Lightning Labs’ Lightning Network Payment System with a group of more than 100 merchants.
Amid the preliminary phase, CoinGate had offered those merchants to repay any losses which will occur because of system mistake, but they found that there was no problem in the system and merchants are using the system without any problem.
One early client of CoinGate’s preliminary took to Twitter to commend the framework.
Those CoinGate merchants who will accept payments by the Lightning Network are Swiss watch manufacturers Chronoswiss and Louis Chevrolet, e-sports bookmaker Mmoga.com, a Lithuanian music festival, hosting service Bitlaunch, an Italian winter sports rentals store and adult websites Livejasmin and Manyvids.
The CoinGate service presently turns out to be considerably more engaging to companies dealing in micro/small transactions, as BTC becomes a significantly more feasible payment method.
CoinGate CEO, Dmitrijus Borisenka, commented on the growth of small transactions that, “We were pleasantly surprised when we came across tweets of our Lightning Network implementation at the Kasbah Bar in Oslo. You may have heard critics claiming, ‘you can’t buy coffee with Bitcoin.’ Well, we’re not sure about coffee, but buying beer with Bitcoin within a second for zero fees is possible in Oslo.”
CoinGate provides an administration that pulls a hole between digital assets and merchants. It gives merchants an approach to acknowledge Bitcoin, Litecoin, Ethereum, and more than 50 different alt-coins. Those who accept these cryptocurrencies as the payment method can also cash their digital money in the form of Euro, USD, or BitCoin.
CoinGate CEO, Dmitrijus Borisenka said, “CoinGate uses all the opportunities to introduce innovations and offers its users the most advanced solutions. We sincerely believe in crypto-currencies as a means for making payments around the world. And although the Lightning Network is still an untroubled technology, it exactly matches our vision of what bitcoin should be in the future.”
After this success, the eventual fate of the Lightning Network looks bright. We can say that the Lightning Network will fulfill its promise for quick transactions, and low or no fees.