CoinGate, a crypto currency payment gateway is planning to add 4,000 of its merchants to Lightning Network. This boost to Lightning Network will make the Bitcoin adoption easier.
The Lightning Network was proposed by Thaddeus Dryja and Joseph Poon. Here a layer is created on top of the Bitcoin blockchain that allows transaction to be passed back and forth before getting added to the latent blockchain.
While sending a Lightning payment, same bitcoin address is given to both the parties to deposit funds through a medium called channel, in which they can exchange funds continuously without a limit.
This helps in maintaining bitcoin’s security and also neglects small, regular payments getting added to underlying blockchain till the closure of channel with increase in transaction speed and decrease in cost. Later it was revealed that Bitcoin’s Lightning Network capacity has reached 100 bitcoin (around $730,000 at time of publication), as per monitoring resource 1ML. Earlier, CoinGate began a trail of Lightning Network with 100 different stores around the world.
The CoinGate merchants who are accepting payments via the Lightning Network include Swiss watch manufacturers ChronoSwiss and Louis Chevrolet, gaming store Mmoga.com, hosting service Bitlaunch, and adult websites Livejasmin and Manyvids.CoinGate is currently not working with any U.S. company but hopes to collaborate soon.
In an email, CoinGate proudly said: “We have processed more than 100 payments successfully, without an error. We previously announced reimbursement will be made in case of any loss to the customer resulted from any network error, which never happens.”
Also, a trail customer of Coingate took on twitter to praise the system for its lighting speed and accuracy which indirectly elevates bitcoin trade in the market.