The Coingate innovation of the lightning network integration is set to make Bitcoin successful as a currency. This will make it more viable for peer-to-peer transactions.
The Currency Status Of Bitcoin
The currency status of Bitcoin, the top valued cryptocurrency has been regarded as a failure by the Weiss rating platform. This is because it requires a high fee for executing transactions and its low scalability level.
The inherent deficiencies have made Bitcoin a store of value only, as opposed to its aim of being a replacement for the currency mode of financial payment. This has made its use for speculative reasons only.
The Lighting Network Role in Making Bitcoin A Currency
Coingate, a cryptocurrency gateway payment platform is set to transform the currency status of Bitcoin with the lightning network payment platform for its over 4000 vendors on the platform. This has been tested by 100 vendors this year to ascertain its success.
The Lightning Network is a second layer payment protocol that operates on top of a blockchain (especially Bitcoin). It enables fast transactions between participating nodes and solving the Bitcoin scalability problem. It features a peer-to-peer system for making micropayments using digital currencies through a network of bidirectional payment channels without delegating custody of funds.
This enables unlimited transactions, increasing the number of transactions per minute on the Bitcoin blockchain to match Visa and other centralized payment systems. The present capacity of the network is noted to be 100 BTC which is valued to be about $640,000 at current value.
The Co-Founder and CEO of the of Coingate, Dmitrijus Borisenko said that the firm is a keen believer in cryptocurrency as a way to transact globally and the lightning network though is new, is the exact vision they have for Bitcoin in the future.
The product is to be launched at the TechCrunch Disrupt Conference as vendors will be permitted to accept payment through the lighting network.
Dmitrijus further stated that bitcoin critics do claim that “you can’t buy coffee with Bitcoin.” He also said that he is not sure about coffee, but buying beer with Bitcoin within a second for zero fees is possible in Oslo. This also means that Bitcoin can also be used for making micropayments and purchases on eCommerce stores.