In Austria, made the world’s first transaction c bitcoin-ATM through the Lightning Network
The Austrian crypto-currency start-up Coinfinity performed the world’s first bitcoin transaction in the Lightning Network (LN) network using a bitcoin ATM. The first transaction in the history of bitcoins outside of the blockchain was made in the office of Cofinity.
From the publication in the official Coinfinity blog, it follows that the transaction was made to establish a connection with the Lightning Network. Paying 50 satoshis for the payment channel in LN, the technical director of the company Daniel Weigl launched one of the first fully functional nodes of this network.
Lightning Network will save the Bitcoin network from overloads
This is not the first experience of the specialists of Coinfinity in the crypto-currency sector. Back in 2014, they launched a web platform for trading crypto-currencies, as well as the first bitcoin-ATM in Austria. In Coinfinity believe that transactions bitcoins outside the blockchain, through the Lightning Network, will solve the problems of congestion and high commissions of the Bitcoin network. As is known, bitcoin has suffered from network congestion and high commissions for conducting transactions for several months already.
These problems cause users to give preference to altcoins like Bitcoin Cash and Stellar. They are more convenient at least for making payments. The key benefits of conducting transactions in LN are their instantness and low cost. Despite the fact that the network is still at an early stage of development, Coinfinity experts consider the Lightning Network to be “a very promising solution to the problem of scalability of bitcoin.” Theoretically, it is capable of processing millions of transactions per second quickly and almost without commissions.
In addition, as noted above, its use will relieve the Bitcoin network, which should facilitate the use of bitcoin to make payments, including small transactions. The Lightning Network will also allow users to conduct direct transactions (among themselves) without reporting data on them to the main lock of the bitcoin.
Lightning Growth Lightning Network
Currently, the Lightning Network includes 429 nodes (of which about 200 functions fully) and about 968 open payment channels. For comparison: Bitcoin Cash, the world’s fourth cryptocurrency in terms of market capitalization, today has 1167 nodes.
Lightning Network simplifies the transaction on blockchain Bitcoin, gaining more and more popularity among the network of corporate users. However, experts urge LN users to be cautious, given that the network is operating in a test mode. In particular, they note that its software may malfunction, which may lead, say, to a loss of user funds.
Despite the temporary imperfection of technical implementation, the specialists of Coinfinity are sure that they made an important step towards mass popularization of bitcoin, in particular, as a means of making payments. The company believes that the next few months of work will be extremely important and exciting.
Let’s remind, that earlier service about the reception of payments by Lightning Network was declared by service Tor Guard.