In this post, we introduce the Lightning Network, a new technology that enables instant BTC payments, as well as Bitfury, our partner helping us integrate this technology into Paytomat.
Hi there! In the last piece, we announced we were entering the US market. Today, we’d like to introduce our new project with the Bitfury Group, the leading full-service blockchain technology company. We are working with Bitfury to bring Lightning Network payments to Paytomat. This integration will help more people use bitcoin in their everyday lives in a faster and more convenient way.
The Lightning Network
The Lightning Network is a second-layer protocol built on top of the Bitcoin Blockchain. This layer enables instant micropayments and better performance for public blockchains by creating off-chain payment channels. By using these payment channels, cryptocurrency users can transact more efficiently with lower costs and shorter wait times.
The main idea behind LN is that not all transactions are required to be recorded on a blockchain. Any participants can create a payment channel between them and record their opening on a blockchain. Then, they can transact any number of times through this payment channel, and it can stay open for any number of hours, days, weeks or decades. When they decide to close their payment channel, the result and summary would be recorded on the blockchain again.
By creating a large network of these two-party channels, consumers can benefit from the security of using cryptocurrencies while also enjoying transaction times compared to using credit cards or other payment methods.
LightningPeach is the Bitfury’s in-house specialized Lightning Network engineering team. This team is responsible for the technical implementation of the LN technology for Paytomat, starting with the Bitcoin Lightning Network. All that is needed is for a merchant and client to connect a payment channel on the Lightning Network. With this option, they can enjoy all the benefits of LN while benefiting from the security of the Bitcoin Blockchain.
The Bitfury Group
The Bitfury Group is the world’s leading full-service blockchain technology company. Bitfury is building solutions for the future, with the most significant technologies of the millennium. Our mission is to make the world more transparent and trusted by innovating at every level of technology — hardware, security, and software — to put trust back into the equation. Founded in 2011, Bitfury is the leading security and infrastructure provider for the Bitcoin Blockchain. In addition to securing the Bitcoin Blockchain, Bitfury also designs and produces innovative hardware that keeps cryptocurrencies and blockchains secure, including custom semiconductor chips and mobile data centers. Bitfury is also a software provider for the some of the world’s most cutting-edge applications through its private blockchain framework, Exonum, its advanced analytics platform Crystal Blockchain, and its specialized engineering team for the open-source Lightning Network, LightningPeach. To learn more, visit www.bitfury.com.