Leading digital asset platform, Paxful, has announced that it will incorporate an L2 scaling solution protocol to hasten BTC payments or withdrawals. Paxful will leverage the payment solution provider for the crypto space’s technology for its users to perform payment settlements on Paxful’s website.
About This L2 Scaling Solution Protocol
The lightning network is an L2 Ethereum scaling solution that routes and verifies transactions through paths outside the BTC blockchain for faster completion of BTC transactions. The network’s target market is micropayments that will be too expensive to complete on the BITNET.
While this protocol charges one Satoshi per completed transaction, it would need new models to allow alternate payment solutions for other services and help content creators get paid. Paxful CEO stated that “BTC is the only solution for forward-driven regions. But he admitted that bitcoin has scalability issues and can only be globally adopted once this issue no longer poses a problem.”
The CEO further said, “lightning is the best way to scale bitcoin because it hastens micropayments without the need to pay high fees.” “We remain optimistic that lightning is the best way users, small merchants, and financial institutions can be connected in the financial world,” he concluded.
The Long Road Ahead
It has to be noted that Youssef’s optimism might be a little far-fetched. A 1ml survey revealed that bitcoin technology isn’t fully developed despite being introduced six years ago. Also, only 2,600 BTC are available across all payment channels. However, lightning labs CEO, Liz Stark, insisted that Paxful’s use of Lightning technology is a big step in achieving Youssef’s dream.
Several crypto enthusiasts have shown interest in lightning technology for their platforms. Notable among them is Twitter’s CEO, who recently said that the lightning protocol is the best option to achieving non-centralized social media. Hence, all social media (including Twitter) would soon integrate the technology on their platform sooner than later.
It seemed Jack Dorsey’s prediction was already coming true. In August 2021, Substack revealed that users would soon be allowed to pay for its crypto-newsletters using BTC, and this would be possible through the integration of the Lightning network. The Substack platform enables content creators to create a personalized subscription for their newsletters.
Paxful has been in the payment transaction business for over six years now. The platform has processed almost $40m worth of transactions in the last seven days alone. Paxful’s new integration makes them join the elusive network of top crypto-related firms that have previously done so.
A Test Launch
There was news that Paxful would incorporate the network earlier in the year. But the company’s COO has clarified that the company only announced a schedule for the integration. It did not state that the incorporation was happening at that time.
The COO further revealed that the test launch started last month with over 90 adopters involved in that beta launch. While $50 was the least transaction worth in that period, Paxful COO insisted that the network could accommodate over $700 worth of transactions on the lightning network.