Cash App Gets Struck By Lightning Network
The hugely popular payment processing network, CashApp has made another significant upgrade to its crypto capabilities. On October 25th, the firm upgraded all its Bitcoin transactions to the Lightning Network. The move is a major milestone for both parties as CashApp currently has around 44 million users mostly based in the UK and North America.
Notably, CashApp has been a long-time supporter of Bitcoin and cryptocurrencies. It was among the first major mobile payment processors to integrate crypto payments into the core platform. The network integrated Bitcoin trading features in 2018 and has continued to expand its capabilities ever since. Today, the network provides a host of crypto-related services to its massive user base.
CashApp Continues to go Decentralized.
CashApp has seen huge success from the venture with the firm reporting the majority of its revenue as being generated from Bitcoin maneuvers over the last year. Specifically, the company claimed that +80% of last year’s profits came from its Bitcoin-related services. The latest maneuver will only drive these profits higher, as it makes it cheaper for Bitcoin users to conduct commerce in every way.
Improving the CashApp User Experience
The Lightning Network is set to improve CashApp Bitcoin transactions in multiple ways. For one, it will enable users to access the entire network. In the testing phase, only payments sent using an LN-QR Code could be processed as Lightning Network payments. Now, the lower cost payments will be set as the standard.
The Lightning Network supports micro-transactions in near real-time. This setup is ideal for sending daily transactions and expanding the Bitcoin adoption rate. Currently, users cannot send micro-transactions on the mainnet due to the transaction costs being more than the actual transactions. The Lightning Network leverages personal payment channels to support smaller transactions with lower fees.
Users save on transaction times when using the Lightning Network as well. The protocol supports instant transitions. In comparison, normal Bitcoin transactions can take anywhere from a couple of minutes to hours to complete. In some extreme scenarios, the transaction can take days to complete. The Lightning Network makes Bitcoin more usable for everyone by making the network more responsive.
According to CashApp posts, there are a few limitations set in place currently. There is a $999 weekly limit set on CashApp BTC transactions. Interestingly, there is no word on how long this limit will remain in place or if this is part of the network’s permanent crypto strategy.
More Growth for Lightning Network
The Lightning Network community appears to be on the move again with the latest integration opening the door for millions of new users. Additionally, the Lighting Network has seen integration into a number of CEXs over the last few months. Preceding these integrations, El Salvador issued every citizen a Lighting Network-enabled crypto wallet as part of their Bitcoinization strategy following the legalization of the crypto as tender.
CashApp Soon to be CryptoApp
You have to hand it to CashApp for this maneuver. The network has consistently pioneered fiat/crypto integration in the market. This latest upgrade is sure to help users save on fees while at the same time driving Lighting Network adoption to new heights. For these reasons and many more, CashApp remains an influential force in the crypto market.