Cash App and Chivo help drive Lightning payment volume up 400%

A caller study highlights however the Lightning Network has grown successful popularity arsenic a mode of transferring integer assets rapidly and efficiently astir the globe. 

CNBC today told the communicative of Alena Vorobiova, a Ukrainian exile presently seeking sanctuary successful Poland. Vorobiova utilized Lightning to transportation $100 worthy of Bitcoin from Miami, wherever it was past withdrawn from an ATM successful the equivalent Polish currency — each wrong the abstraction of 3 minutes.

That’s the benignant of debased cost, precocious velocity transaction that has seen the Layer 2 scaling solution for Bitcoin turn 410% successful outgo measurement implicit the past year.

According to the report published by Arcane Research, the fig of payments that occurred connected the Lightning Network successful the past twelvemonth doubled portion the full worth of those payments quadrupled.

The study warned that the widely-cited nationalist metrics utilized to measurement Lightning Network adoption — astir commonly full worth locked (TVL) — underestimate the size of the web arsenic they neglect to number backstage channels and invisible nodes. Additionally, the metrics don’t bespeak existent satellite Lightning Network usage, whereas looking explicitly astatine outgo measurement paints a clearer representation of existent Lightning adoption.

A partial mentation for the surge successful outgo is owed to the tremendous summation successful the fig of users who person precocious gained entree to the Lightning Network. This is done apps similar El Salvador’s Chivo Wallet and US-based outgo application, CashApp.

The State of Lightning Vol. 2 Report: Arcane Research

Arcane estimated that successful Aug. 2021, astir 100,000 users had entree to Lightning payments. By March of this year, implicit 80 cardinal radical had the quality to access payments connected the Lightning Network , which shows that determination is simply a ample imaginable idiosyncratic base.

The study recovered that astir 50% of the worth of each payments came from nonstop transactions betwixt individuals — Peer-to-Peer (P2P) transactions. Almost 1 3rd of the outgo worth came from speech withdrawals and deposits, with the remaining 20% coming from purchases made done immoderate signifier of vendor.

Related: Lightning to onslaught Shopify merchants with summation of BTC payments

Despite Bitcoin being primitively designed arsenic an physics currency strategy — the sluggishness of the Bitcoin networks successful resolving transactions gave emergence to layer-2 solutions. The Lightning Network was launched successful March 2018 to supply faster and cheaper BTC transactions.