Bitcoin was launched in 2008 by Satoshi Nakamoto to function as a peer-to-peer electronic cash system. Bitcoin was intended to be an alternative form of money. For this purpose, BTC must function both as a means of payment (medium of exchange) and as a store of value.
The latter is given by the programmed limit of 21 million coins and the halvings that take place every 4 years.
However, a common criticism of Bitcoin is that it does not fulfill the function as a means of payment because the blockchain limits scalability. The second layer solution Lightning is designed to solve this problem.
Born2Invest is a mobile application for crypto enthusiasts and finance news. Our mobile application is a platform for the next generation of investors. We explore how cryptocurrencies and digital assets are contributing to the evolution of the global financial system. Its mandate is to inform, educate, and connect the global investment community through news, data, events, and education.
Bitcoin news from Lightning Labs
Bitcoin News comes from the crypto startup “Lightning Labs”, which specializes in the development of products around the second layer solution for the BTC network. According to a blog post by CEO Elizabeth Stark on Medium, the company has now raised $10 million from investors in a Series A investment round.
The money will be used to develop Lightning payment technologies and expand the developer ecosystem. Stark wrote about this in her post: “Lightning Labs doesn’t see this as an achievement in itself, but as a means to achieve our goal of providing millions of people with instant Bitcoin transactions.”
Lightning Labs: the visa in the BTC network
The $10 million investment came from a number of investors, including Craft Ventures, Slow Ventures, David Heller (formerly Goldman Sachs), Avichal Garg of Electric Capital and Ribbit Capital. In 2018, Lightning Labs had already provided Bitcoin News when the San Francisco-based startup was able to collect $2.5 million in a seed round. Among the investors at that time were Twitter CEO and BTC fan Jack Dorsey.
Brian Murray, Managing Director, and Board Member commented on his company’s Bitcoin News with a comparison to financial giant Visa: “If Bitcoin is to reach its potential as a viable global currency, it must scale beyond the base layer. Just as Visa relieves banks from handling all fiat currency transactions, Lightning relieves Bitcoin Blockchain from handling all transactions, bringing more speed and fee efficiency to the network.”
Next Bitcoin News: Additional first product launch
In the same media article, Elizabeth Stark also announced the release of the beta version of Lightning Loop, the company’s first paid product. Lightning Loop is designed to help start-ups, node operators and users send and receive BTCs more efficiently, allowing users to transfer funds between the Bitcoin Blockchain and the Lightning network. This is only the beginning: “Loop opened a world of lightning-native financial products.”
Boost for bitcoin through Lightning
This kind of Bitcoin News provides any BTC investor with hope. After all, the further development of the Lightning network, suitable products, and the associated ecosystem could be the solution Bitcoin needs to remain relevent as mining rewards decrease.
Without possibilities to scale the number of payments that can be processed on the blockchain Bitcoin cannot be used as a means of payment. This wouldn’t be the end of the world as BTC would continue to function as the “gold” of the crypto world.
Nevertheless, a functioning Lightning network could ensure that the intended use as a medium of exchange is also possible. This adds value to Bitcoin, which in the long term could also be reflected in Bitcoin’s price because more people use BTC.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Encomenda Invests €200,000 to Launch Telemedicine Startup Doctomatic
The fund led by Carlos Blanco and Oriol Juncosa has helped launch this new digital platform, called Doctomatic, for remote...
Burkina Faso: The European Investment Bank Strengthens its Partnership with CAPE
According to the Director-General of CAPE Burkina, the support of the EIB is one of the major factors that has...
The First Four Projects of the Civic Crowdfunding of Venice Were Launched
The first four civic crowdfunding projects in Venice were launched. The project "ONDEW - Let's face climate change together", is...
What Fintech Trends Set the Agenda for 2021 in Argentina
The fintech sector in Argentina has strongly developed during the pandemic. There are 238 fintech companies, i.e., almost three times...
Why Plant-Based Meat Could be the Future of the Food Market
Despite this incredible development and potential, vegetable meat is not the only alternative coming into play in this new era....
Cannabis2 weeks ago
Recreational Cannabis in Argentina, an Unavoidable Debate for the Congress in the Making
Cannabis1 week ago
Are Cannabis Social Clubs in Barcelona on the Verge of Closure
Featured2 weeks ago
Should You be Looking for Reasons to Sell the Stock Market
Africa2 weeks ago
Energy Efficiency: the Moroccan Ministry of Housing Gets up to Standards