Every day, more merchant from across the world express more interests in accepting cryptocurrencies such as Bitcoin. This requirement led to the emergence of a number of new crypto payment processors entering the business market over the last year. The Lightning Network gives these processors the ability to now offer their clients a way to accept Bitcoin without delays. Today, there are multiple Lightning Network payment processors in operation.
The Lightning Network is nothing but it is a second-layer protocol that operates on top of the Bitcoin Blockchain to enable instant, low-cost micropayments.
Read more - What is Lightning Network?
Meanwhile, the crypto breakout of 2017, scalability concerns hindered Bitcoin’s ability to function as “electronic cash.” The business wanted to accept cryptocurrencies like Bitcoin but due to the delays and volatility that could occur during these time periods, Bitcoin didn’t make sense. The Lightning Network knock out these problems.
Le’s explain deeply,
Actually What is Bitcoin Lightning Network Payment Processor?
It is a payment gateway where the merchants can provide their customers to pay for their online purchase using the digital currency like Bitcoin without delays.
Bitcoin Lightning Network payment gateways: Key advantages
Transaction Speed:
Currently, the Bitcoin network can process 7 transactions per second. However, as the reputation of bitcoin continues to grow, more transactions will need to be processed each and every second (so bitcoin can approach the capacity of Visa or Mastercard, which process hundreds of thousands of transactions per second).
One of the smart ways to allow more transactions, without sacrificing security, is the use of payment channels like the Lightning Network.
Using the Lightning Network, users will be able to send bitcoin transactions to each other on a second layer above the Bitcoin Blockchain. The unique details of their transactions will not be recorded personally on the Bitcoin Blockchain. However, primary details and cryptographic confirmations of the transaction details will be recorded on the Bitcoin Blockchain. This means these users still profit from the longevity and security of the Bitcoin Blockchain while being able to send and receive payments much faster.
Transaction Fees
Another main difference between sending a payment on the Bitcoin Blockchain exactly and using the Lightning Network will be the transaction fee cost. Approximately, users pay a fee to send a transaction to the Bitcoin Blockchain. This is not mandatory, but it incentivizes miners to process their transactions faster. As the Lightning Network gained more popularity, bitcoin lover asked some questions regarding Lightning Network like whether they would see the same or lower fees using the Lightning Network — if the fees stayed the same, why use another payment rail?
In reply, Lightning Network developers Joseph Poon and Tadge Dryja hypothesized in 2016 that the booming levels of competition between Lightning Network nodes would drive down fees on the network to close to zero.
As the network reach to grow, many of these smaller transactions that take place on the blockchain can be transported to the Lightning Network, thereby freeing up space and demand on the blockchain. This means that the Lightning Network might be able to manage thousands, if not millions, of transactions before a single transaction has been broadcasted to the Bitcoin Blockchain.