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Sunday, September 25, 2022

Chivo And CashApp Are Responsible For The Rise Of Lightning Payment

There is a new report that is circulating in the market which shows that the popularity of the Lightning Network has increased a lot regarding the quick and efficient transfer of digital assets across the entire world. CNBC revealed a story this Thursday about Alena Vorobiova, a refugee of Ukraine who is looking for a sanctuary in Poland right now. 

CashApp Helped To Increase Volume Of Payment As Adoption Grows

Alena transferred Bitcoin worth $100 with the help of Lightning from Miami and was then taken out from an ATM in the currency of Poland. This entire incident took place within three minutes. This shows a very fast transaction with a very low cost which uses the solution of layer-2 for the growth of BTC that occurred by 410% over the span of a few years. 

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As per the report of Arcane Research, the payment number in the Lightning Network has increased twice as compared to last year and the aggregate value of these payments has increased four times. A warning was given in the report that TVL, the most-cited public metric which is used for the measurement of adoption of Lightning Network has underestimated the size of the whole network. 

This underestimation was due to the fact that they did not count properly the invisible nodes and private channels. Moreover, the metrics do not show real-world use of Lightning Network, however focusing on the volume of payments, a clearer picture of adoption comes out. 

The reason for the increase in payment is because of the rise in the number of users who have got their access to the Lightning network just recently. This increase in number is happening through apps like CashApp, the payment application that is based on the U.S. and El Salvador’s Chivo Wallet. 

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The CashApp and El Salvador’s Chivo were responsible for the rise in payment volume of the layer-2 scaling solution, Lightning Network, by 400%.

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