Support For The Bitcoin Lightning Network Has Been Added To CashApp

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Last Updated on October 26, 2022 by Bitfinsider

Cash App is a mobile phone payment processing app that was developed by Block Inc. According to a new page that was updated to its support section on October 25, Cash App has enabled support for transactions that are carried out via the Bitcoin Lightning Network. Users of Cash App will now be able to transmit and receive Bitcoin using the layer-2 protocol, which is significantly faster and more efficient than the layer-1 protocol. In contrast to the Bitcoin network, which can take anywhere from minutes to hours to conduct a transaction, Lightning’s processing speeds are nearly instantaneous, making it perfect for smaller transactions.

Cash App had already enabled Bitcoin transactions on the Lightning Network in a limited capacity, with users only being able to pay for bills by scanning Lightning QR codes. However, this support for the Lightning Network was expanded recently. Lightning will now be the default payment method for all Cash App transactions involving QR codes unless another method is specifically specified. Customers in the United States can take use of this brand-new option, which has a transaction maximum of $999 once every seven days but is not open to people living in the state of New York.

Cash App initially introduced BTC trading in 2018, and the app quickly rose to prominence as one of the most widely used platforms for Bitcoin transactions in the United States and the United Kingdom. Bitcoin accounted for 81% of the app’s total revenue of $12.3 billion in the previous year. The app currently has more than 44 million active users on a monthly basis.

Users have the ability to make a weekly deposit of up to $10,000 worth of Bitcoin and are given a tax form for use within the app for purposes of accounting. Utilizing the “Paid in Bitcoin” option, it is also feasible to automatically invest a portion or all of one’s direct deposit into Bitcoin with no costs involved. This can be done at one’s discretion. Aside from that, the ordinary transaction fees are usually around around 2%.

According to a previous article by Bitfinsider, the Lightning Network presently possesses approximately 87,000 payment channels and 4,570 BTC that are locked in. However, adoption of Lightning has been fairly gradual, with the amount of coins on Lightning being a very small fraction of the 19 million BTC that are currently in circulation.

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