Connect with us

Cryptocurrency

Crowdfunding gets a boost from the Lightning Addresses on Bitcoin

Published

on

The Lightning Network strikes again. In a small but important development for Bitcoin (BTC), it was a new type of BTC address I entered: “Lightning address”. These unique identifiers are designed specifically for use on the Lightning Network, a Layer 2 payment protocol that runs on top of the Bitcoin blockchain.

A handy addition to the ways Bitcoin users can send, receive, and even collect money, Lightning addresses can act as custodians, or users can connect to their own nodes. Crowdfunding is among the most popular real-world uses for Lightning addresses.

Cointelegraph spoke to MetaMick, chief technology officer of Geyser Fund, to better understand how lighting addresses are being used and why crowdfunding is such an outgrowth of this technology. Geyser Fund is a crowdfunding platform similar to GoFundme but that uses Bitcoin and Lightning.

Lightning addresses are “email-like identifiers that allow users to send value to each other via lightning. They are easy to save and reusable (unlike bolt11 lightning addresses),” explained MetaMick, chief technology officer at Geyser Fund. Try Cointelegraph the service and be able to raise money in a short time:

These wallet addresses can be generated on custodial solutions such as Wallet of Satoshi, CoinCorner, or BitRefill, and quickly synced with Geyser Fund:

“Just link your wallet to Geyser, and all donations will go directly to your wallet.”

Crowdfunding has always been an area of ​​interest for Bitcoin and cryptocurrency. With Bitcoin’s censorship-resistant and self-sovereign properties, it is one of the most efficient ways to send money online.

Over 20 types of Lightning Wallet addresses are available for plug-and-play. Source: Geyser

The first widespread use case of use Bitcoin to raise money It was the 2011 WikiLeaks campaign where Julian Assange collected thousands of bitcoins when access to banking services was cut off. Recently, Canadian truck driver protests used Bitcoin when the Canadian government Stopping USD based crowdfunding solutions; It was a similar story With protesters in Nigeria.

However, Lightning Addresses takes finance a step further in terms of speed and usability. Transactions on the Lightning Network can be completed almost instantly, compared to an average of 10 minutes for regular Bitcoin transactions. Lightning is perfect for recurring small payments, like those made in brick-and-mortar stores, or for sending small donations to creators around the world.

And thanks to Lightning Addresses, Bitcoin users can now collect funds faster and with a straightforward user experience. Additionally, Geyser eschews acting as a custodian as all funds go directly to creators’ Lightning addresses thanks to “hodl bills.” The result is an untrustworthy, non-custodial process, which is a core tenet of the Bitcoin philosophy.

Related: Not medical advice: Bitcoiner implants a Lightning chip to manually make BTC payments

Ultimately, while there are still some hurdles to overcome with the Lightning Network, such as the need for More user-friendly wallets And better integration with existing payment systems, the Lightning Network clearly has the potential to revolutionize the way payments are made, and money raised online.

As more users adopt the Lightning Network and take advantage of the benefits of these new addresses, it is possible that we will see a significant shift towards more efficient, cost-effective, and censorship-resistant online payments.