NordikCoin Exchange Integrates the Lightning Network
NordikCoin is a centralized exchange that seeks to provide users with a viable alternative to the current high fees encountered on most Bitcoin transactions. These fees are the direct result of network congestion and the technical structure of Bitcoin's PoW blockchain. The more users that are on the network, the higher the miner and transaction fees.
These high fees have forced investors to flood to these new platforms in droves. Already, the African-based exchange Landifa processes 80% of its total on/off ramp transactions via LN payment portals. Another exchange has joined the exclusive ranks this week, NordikCoin. The news came via a NordikCoin press release.
The Motivation was Users – NordikCoin
The release detailed some of the motivation, the advantages, and some of the technical benefits gained from the integration. The document starts by informing users that the protocol is still in Beta testing. Notably, the Lightning Network is still in Beta testing as well. It has been under development for over 2-years now.
Select NordikCoin Traders Only
Since it's still in testing, not every NordikCoin trader is permitted to use these services just yet. Sadly, the company hasn't listed what criteria they look for in order to provide access to these new features publicly. Analysts assume expert-level traders will be among the first people gaining access.
The press release also highlights the fact that the Lightning Network reduces the fees users pay and provides much faster transaction times. The Lighting Network reduces fees because it conducts most of its transactions off-chain and instead it relies on personal payment portals that allow parties to send unlimited transactions. Only when the portal closes, do the transactions add to the blockchain.
Notably, the press release delves into some of the reasons why LN-powered payments provide more anonymity to users and all-around more privacy. Privacy advocates in the market have been sounding the alarm as of late due to the continued advancements made by blockchain forensic firms. These companies make it possible to track Bitcoin transactions and reveal the owner of certain wallet addresses. In turn, this jeopardized Bitcoin's fungibility.
Lightning Network Growth Trend
This year saw the number of channels, channel values, and nodes increased significantly in Q1, 2021. In only one year (April 2020 and 2021), the Lightning Network has doubled from 5,349 to more than 10,000 nodes. This growth is expected to continue for the foreseeable future.
Other Developments in the LN- Community
Another major development this week was the revelation that 80% of Bitcoin Trade Nambia's on/off values are Lightning Network driven. Bitcoin Trade Nambia offers users non-custodial Bitcoin ‘on/off-ramp services in the African country. Users are saving on funds and delays using the platform. These savings have helped drive more adoption in the region.
NordikCoin Made a Smart Move
NordiKCoin has taken the initiative to help remove friction for its users. The decision to integrate the Lightning Network can be applauded by the LN community because it will help to spur more adoption. Users enjoy lower fees and that’s sure to spark some investor interest moving forward.