Leading peer-to-peer exchange Paxful has become the latest cryptocurrency platform to integrate the Bitcoin lightning network. This new support will enable the millions of users on the platform to process transactions in Bitcoin a lot faster and cheaper.
Bitcoin Lightning Support on Paxful
Lightning Network has been instrumental in the adoption of Bitcoin as a digital payment alternative. Scalability is one major issue with the Bitcoin blockchain, and that is responsible for the high fees and low processing time often faced on the network. Based on Bitcoin, the lightning network was introduced as a Layer-2 scalability solution to help streamline transactions on the network.
Following the integration of the Bitcoin Lightning network, the seven million global users on the exchange can now process Bitcoin transactions in a matter of seconds and at lower fees. The base fee per transaction can be anywhere around $0.04 or 1 Satoshi.
“Bitcoin is hands down the best financial option for the people who really drive economies forward. But in order for it to succeed and usher in global adoption, we need to overcome the issue of scale,” says Ray Youssef, the co-founder of Paxful.
How Does Bitcoin Lightning Work?
The standard Bitcoin network requires nodes to approve transactions before they are mapped to the blockchain. This process takes quite some time, which raises the overall transaction processing time on the network. However, the Bitcoin Lightning network doesn’t operate on this mechanism.
The lightning network is more scalable given that “parties can transact with each other without everything having to be approved by nodes.” This is becoming more common for companies and businesses to accept BTC payments in countries like El Salvador, which recently adopted Bitcoin as a legal tender.
As of August 18, the active nodes supporting Bitcoin Lightning surpassed 25,000. In July, Blocdesk reported LN capacity was increased from 1,700 BTC to 1,800 BTC.