CoinGate Integrates Lightning Network, Seeks Early Adopters
Lithuanian crypto payments gateway CoinGate works on Lightning Network for instant Bitcoin payments and seeks early adopters to test it.
Lithuania-based cryptocurrency payments gateway CoinGate has announced a sandbox testing for its Lightning Network (LN) seeking to integrate the Bitcoin (BTC) scaling solution. The company has enabled early adopters to take part in the testing, which involves accepting BTC payments via the LN through its gateway. Users can purchase a virtual cup of coffee on CoinGate’s test shop, using testnet Bitcoins.
In a Reddit publication from Monday, CoinGate said it has been aspiring to integrate the LN for a long time, even though the technology is still in its early stages.
It warns that the platform is not yet very user-friendly, with possible bugs both in LN itself and in CoinGate’s implementation of it.
“Although still in its early stages and more suited to advanced, technical users, LN is, without a doubt, the most awaited upgrade to the Bitcoin network”, CoinGate said in its publication.
Lightning Network is a “second layer” payment protocol operating on top of a blockchain, mainly Bitcoin. It allows instant and cheap micro payments through peer-to-peer (P2P) transactions, that eventually get settled on the blockchain. The use of the Lightning Network would make payments with Bitcoin, and other cryptocurrencies, much faster and a lot cheaper, particularly at times of high network load, when transfers sometimes take hours, if not days.
The Lightning Network was initially developed for the Bitcoin blockchain, but the developers of other major cryptocurrencies are also working on a similar technology. Among them are Litecoin, Ether, Stellar, Zcash and Ripple.
CoinGate, established in 2014, has over 4000 merchants who are using its gateway to accept payments in over 50 cryptocurrencies. The majority of CoinGate’s customers are from the tech industry like web hosting and VPN, as well as niche industries, but its goal is to make cryptocurrency payments mainstream.
Other major players in the cryptocurrency payments market are BitGo, Coinbase and Shopify.
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