Lightning labs, which has raised $10 million through round a financing, is preparing to launch its first payment service for businesses interested in receiving bitcoin payments.

The round was led by craft ventures, whose managing director Brian Murray joined the board of lightning labs. Other investors include slow ventures, David Heller, former co head of Goldman Sachs securities, avichal Garg of electric capital and rabbit capital.

Lightning lab will launch the first payment service for bitcoin payment merchants

This round of financing shows that some investors believe the San Francisco based start-up is one of the few agreement oriented companies with forward-looking business models.

“If bitcoin is to realize its potential as a global currency, its transactions need to be faster and cheaper than the underlying layer,” Murray said. “Visa is a payment network, which provides a lot of convenience for the flow of money around the world, just like lightning network provides services for bitcoin.”

In 2018, lightning labs released a beta version of LND, a capacity expansion solution, and obtained $250 through seed round financing. The investors in this round of financing include Jack Dorsey, CEO of twitter, Jacqueline Rees, senior executive of square, and Jack Dorsey, CEO of twitter Charlie Lee, founder of litecoin, and David sacks, former chief operating officer of PayPal. In addition, lightning lab launched a mobile wallet app in June last year, which is currently offering a paid service called lightning loop.

“Lightning ring” is designed to help businesses manage their payment channels more effectively. Lightning online payment channels need bitcoin to remain open, which is a problem for those who really use these channels, because they do not have a fully balanced flow in and out.

“Loop in helps people put money into existing channels, a bit like a prepaid debit card for a lightning account.” “Loop out is the most popular product right now, allowing people to continue to receive money on Lightning networks,” said Elizabeth stark, chief executive of lightning labs

The service will charge a small fee in each complete ring to help businesses and exchanges maintain channel liquidity.

Over the past two years, more than a dozen startups have sprung up on lightning. Stark said lightning labs would become an “infrastructure provider” for other start-ups.

In 2019, the first lightning conference in Berlin attracted 500 participants, so a small number of developers and service providers may be willing to fund back-end support from the beginning“ In my opinion, there will certainly be a lot of financial services. You can batch all these services, and “lightning ring” is one of them, “stark said.” the blockchain will become the anchor layer for other layer 2 services on Lightning network. “

One example is the shopping app fold, which handled about 1600 lightning online payments during the holiday shopping season in 2019.

“We are developing rapidly. Lightning lab’s” lightning ring “service makes it easy to manage the mobility of lightning network nodes. It allows our team to focus on building a good user experience and bring lightning network to all parts of the world.” Will Reeves of fold told coindesk.

Stark said that in addition to the “lightning ring”, lightning lab will focus on more payment channels in 2020, including opt in channels and atomic multi-path payments. The optional channel can hold more than 1500 US dollars alone. Atomic multi-path payment can decompose the payment into smaller parts. If all the decomposed small payments cannot reach the same payee in time, it can return the full amount.

Alexander Leishman, chief executive of river financial, said his start-up exchanges used LND to provide users with lightning network liquidity and trading functions, while lightning lab and acinq were the only two start-ups in the field focusing on protocol development “twigs and twigs”.

“If it allows us to support larger amounts of bitcoin off chain transactions, it will improve our user experience. There are already users who are beginning to be disappointed with the limitations of the lightning network, “Leishman said.” we are definitely interested in services that make lightning trading easier. “

Stark, an adviser to Leishman’s exchange, said the goal of lightning labs was to automate services so that the network could “work properly” without customers having to tamper with channel allocation and traffic. The peer-to-peer instant messaging application Sphinx is also using LND.

“Lightning lab is building channels for bitcoin to help it become a medium of exchange, micropayment, remittance infrastructure and commitment.” Jill Carlson, an investor in slow ventures, said in a news release.

Murray agreed and said he firmly believes that the infrastructure behind popular mobile applications in the next 10 years will “take on different forms” because it will make direct payment between peers possible without relying on third-party providers who make money from user data.

At the same time, Stark is optimistic and curious about the ability to send “a small amount of data with payment.”.

Referring to the broader range of bulk services lightning labs will offer at this time of 2021, she concluded: “lightning native financial services that will help improve lightning networks.”

Responsible editor; zl

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