- Michael Saylor integrates Bitcoin Lightning into his corporate email address to receive Bitcoin.
- Microstrategy has since been receiving donations from the crypto community.
Co-founder of business analytics software firm MicroStrategy (MSTR) Michael Saylor has reportedly incorporated Bitcoin’s Lightning Network into his corporate email address. The integration demands that developers use an internet identifier or email address to replace standard Lightning invoices or payment requests. This means Saylor’s email address – [email protected] can receive Bitcoin.
According to reports, Saylor is worth around $1.2 billion, with his company accumulating around 140,000 BTC (about $4 billion at current prices). Since the integration, the company has been receiving small Bitcoin donations from fans. This is a huge move as the protocol is currently being explored by several firms for possible integration.
The Lightning Network is a layer 2 scaling solution meant to make Bitcoin payments cheaper and faster. The rise of scalable blockchain has forced Bitcoin and Ethereum to rely on layer 2 solutions. Scalability, speed, micropayment support, and low energy requirements have been an advantage of the Bitcoin Lightning Network. However, cost and friction are said to be getting onto the network. Another challenge is counterparty risk during transactions and a lack of functional scalability.
How Lightning Network makes transactions cheaper
Its adoption has been on the rise as there are reports that about 5,400BTC ($161 million) are locked into the Lightning Network. Also, around 16,400 nodes and 75,700 channels are being used. Interestingly, the average cost per transaction is 1 Satoshi (or 0.00000001 BTC). This is around $0.02.
Comparatively, Visa charges an interchange fee of 1.15 percent + $0.05 to 2.40 percent + $0.10. They also charge an assessment fee of 0.14 percent. MasterCard also charges an interchange fee of 1.15 percent + $0.05 to 2.50 percent + $0.10 with an additional assessment fee of 0.1375 percent for transactions under $1000. A fee of 0.01 percent is charged on transactions of $1000 or more. This means a $100 purchase may cost the merchant between $1.34 to $2.64. For MasterCard, merchants may incur between $1.4775 to $2.7375.
In addition to these, transaction volume has also increased. According to BitPay, the volume increased by 18 percent in 2022 compared to 2021. In the fourth quarter of 2022, the growth was 32 percent higher than in 2021. In a Valkyrie investment report, the adoption of the protocol has been massive since 2023.
Crypto exchanges have started using the protocol to enable traders to withdraw smaller amounts of Bitcoin cheaply and instantly. Also, Defi, liquidity providers, NFTs, and gamings are emerging on the Lightning Network.
Former PayPal President David Marcus has disclosed that his new startup Lightspark is building on top of the Bitcoin network. Lightspark’s products enable users to integrate their platforms to support instant Bitcoin transactions on the Lightning Network. Muneeb Ali, CEO of Trust Machines spoke about this:
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Effectively with a solution like this many independent players (imagine 100s of retail stores) can start giving more reliable payments to their end customers without hiring their own teams to manage ‘enterprise-grade lightning’ like Strike or Cash App had to.
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