Twitter is THE space for any crypto conversation, trending news or raising a query regarding any transactions of any crypto enthusiasts. It came as no surprise when back in April 2022, Block, a company run by ex-CEO of Twitter, Jack Dorsey announced that a ‘Paid in Bitcoin’ feature via the Bitcoin Lightning Network is soon to be launched on the Cash App. While the company had integrated Lightning to the app in February, users could only send Bitcoins via the network and not receive them. A followed up upgrade is what today’s news is all about!
According to Cash App Bitcoin Product Lead Michael Rihani’s Tweet, the users of the Cash App can now not only send Bitcoin but also receive Bitcoin using the Lightning Network.
You can now receive #bitcoin instantly via the Lightning Network in @CashApp! ⚡
– Open Cash App
– Money tab -> Bitcoin
– Share QR code or link
What do you think?
Try it by sharing your link below 👇 pic.twitter.com/rg1BbzyLMB
— Michael Rihani⚡️ (@MichaelRihani) October 25, 2022
What is Lightning Network?
In simple terms, the Lightning Network is a “second-layer solution” that helps in speeding up transactions, while reducing costs, by routing the transactions through other channels without needing to use the main Bitcoin blockchain. The Lightning Network later gets to settling those transactions. It is basically a scaling solution that attempts to address two of the main issues with Bitcoin; its slow transaction speeds and its high transaction cost.
The solutions that this new culmination of newer features is bringing onto the table, eventually have the potential to propel the crypto community to achieve an even wider scale adoption of the world’s biggest digital asset. With the Lightning Network in place, people will be able to use Bitcoin not only for trading and investments but also for everyday purchases.
What is the difference between Lightning and Bitcoin Network Transactions?
The main difference between Lightning and Bitcoin Network transactions remains in the scalability of the transactions and the fess involved. While the Lightning Network is most definitely the faster and cheaper way to send and receive bitcoin transactions; the Bitcoin Network (On-Chain or using the blockchain for transactions) takes more processing time.
With the Lightning Network, there is typically little to no fees involved, while with transactions taking place via the Bitcoin Network, there may be some fees involved. Along with that, all transactions via the Lightning network are almost instant, while all transactions through the Bitcoin blockchain can take upto several hours to process.
Related: Bitcoin on chain metrics indicate undervaluation
Is there any limit for sending and receiving using the Lightning Network?
According to the Cash App website, users can send, or receive payment of up to $999 in bitcoin every 7 days using the Lightning Network.
The following steps can be used to view the bitcoin limits and progress within the Cash App:
- Tap the Money tab on your Cash App home screen
- Tap on the Bitcoin tile
- Scroll down and select Bitcoin Limits
Note: The Cash app is currently only available to users in the U.S. and U.K. but boasts over 44 million monthly users.