U.Today is supported by its audience. When you buy through referral links, we may earn a commission.

Company That Can Solve Bitcoin's (BTC) Adoption Problem Rakes In $10 Mln

News
Wed, 02/05/2020 - 17:22
Alex Dovbnya
Lightning Labs wraps up its Series A funding round with $10 mln more in its coffers
Cover image via www.123rf.com
Contents
Put your crypto to work
10
BTC
  • $68.96

    Interest per week

  • $3585.7

    Interest per year

  • 4.15%

    Interest rate

Join Now!
Sponsored by Celsius.Network

Lightning Labs, the Palo Alto-based company that is focused on the development of the Lightning Network, has managed to raise $10 mln during its Series A funding round that was spearheaded by Craft Ventures. The startup plans to use this money to expand its 11-strong team. 

Related
Bitcoin Price to Hit $250,000 Due to Lightning Network Use by 2023: Tim Draper

Meet Lightning Loop

The Lightning Network is the "Layer 2" protocol that is meant to tackle Bitcoin's scalability problem. By opening a private channel, users can send BTC instantaneously with practically zero fees.    

"The Internet brought the world a shared communication system. Bitcoin, complemented by the Lightning Network, is bringing the world a shared currency," said Brian Murray of Craft Ventures.

This solution still has a lot of pain points such as channel liquidity that hinders wider merchant adoption. In order to tackle this problem, Lightning Labs recently introduced its first paid product called Lightning Loop. 

The new offering allows channels to stay indefinitely open by providing them both with inbound and outbound liquidity. The startup requires its customers to pay a minuscule fee for each loop.  

Related
Bitcoin Price to Hit $250,000 Due to Lightning Network Use by 2023: Tim Draper

Lightning is growing more popular 

When Lightning Labs started to implement the Lignignting Network four years ago, it was an unknown technology. Since then, it has experienced exponential growth.

As reported by U.Today, Bitfinex recently became the first A-list exchange to embrace Lightning. Meanwhile, Jack Dorsey's Square Crypto is working on the Lightning Development Kit (LDK), which would make it easier for wallets to integrate the off-chain solution. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

Top 10 Best Cloud Mining Sites in 2020
TOP 20 Best Bitcoin Trading Bots in 2020
Bitcoin SV (BSV) Miners Flock to BTC After Botched Halving as BCH Hashrate Tanks
Bitcoin (BTC) Ponzi Schemes Take Massive Hit During COVID-19 Pandemic, but You Have to Watch Out for These Scams
Trump Voices Support for $50 Bln Airline Bailout: 'It Is What It Is'