Coingate, the popular cryptocurrency payment platform that allows merchants and consumers to buy, sell and accept Bitcoin (BTC) and over 50 alternative cryptocurrencies has started its lightning network try using Litecoin (LTC).
While the cryptographic payment company mainly processes payments in Bitcoin, Litecoin is also popular for over 10% of Coingate's monthly volume, according to the marketing manager Veronika Mishura.
Litecoin's Lightning Network reduces Taxes
With the integration of Litecoin's lightning strike network with over 100 knots now, the company believes that traders will be more incentivized to use Litecoin due to lower tariffs.
Reported by CCNMishura said that it is often not worth paying with cryptocurrencies due to high taxes. However, with Litecoin's Lightning network, people can buy small items without worrying about tariffs:
"VPNs must be honest one of the most frequently used services by crypto-enthusiasts (what we see from our data.) However, due to the rather low price, it is usually a no-win to be paid with Bitcoin or Litecoin; exactly what Lightning is supposed to solve.This is what we are trying to show – paying even for low-priced products should be possible, convenient and cheap using cryptocurrency ".
Currently, Coingate has 4,500 merchants using their cryptocurrency payment gateway service and the first company to use the lightning network on Litecoin will be a VPN provider called Surfshark. Mirsha hopes that all their companies will use the lightening network to reduce taxes and friction on both sides.
We will not postpone the next big launch – #Litecoin #LightningNetwork it's ON !!! We started the process together with our first selected merchant @SurfsharkSecure. Others will join soon! For now, dig into our blog post for more information! $ LTC @SatoshiLite @LTCFoundation https://t.co/rGLrxYD3Fo pic.twitter.com/tzbbALS9hF
– CoinGate (@CoinGatecom) 17 January 2019
The Lightning network is a second-level scaling solution initially created for Bitcoin, but recently adapted and launched on Litecoin. As you may already know, Litecoin is simply a fork of the Bitcoin code, and therefore can adopt the same features as Bitcoin.
The sister cryptocurrency is often used as a test basis for new code changes before they are fully implemented on Bitcoin. A previous example of this is Segwit, a minor downsizing solution first tested and adopted by Litecoin, although initially created for Bitcoin.
Returning to the Lightning network, it uses payment channels to regulate off-line transactions with respect to the online chain. This frees the workload of the blockchain and allows substantially greater throughput with low rates because the work is carried out off-line.
Adoption by the merchants
Coingate serves mainly the European market with 2 services: allow people to buy and sell Bitcoin and over 50 altcoins with fiat options and also provide a cryptocurrency payment platform for merchants. Coinbase also provided these services, before abandoning traders and focusing on their exchange.
Therefore, Coingate is more than a competitor with Bitpay, the main cryptocurrency processor for merchants. However, while Bitpay is the most popular, Coingate allows companies to accept all major cryptocurrencies and a wide range of altcoins while Bitpay mainly supports Bitcoin, adding only more options recently.
The Coingate standard processing fee is 1% and customers can choose Bitcoins, US dollars or euros as a designated payment.
In addition, CCN recently interviewed Edge Wallet founder Paul Puey, who said that merchant adoption will play a key role in the global mass adoption of Bitcoin. However, he believes that we lack an easy-to-use encryption terminal for merchants.
Adding to this him He said:
"The biggest missing piece in merchants' adoption is that there are no tools to incorporate cryptocurrency into their entire business model – the store is just the beginning – and there, too, there are no big options available. "
In order for Bitcoin's mass adoption to take place, the crypto payment will have to be higher than the existing payment terminals and easier to use for merchants.
Users of Litecoin wishing to try Lightning Network can use it through Surfshark starting today.
When do you think the lightning network really takes off? Will it be a hit or a big flop? Let us know what you think in the comments section below.