On October 25, Block Inc.’s Cash App, a mobile phone payment processing app, added a dedicated support page for processing Bitcoin Lightning Network transactions. Users of Cash App can now send and receive Bitcoin using the more streamlined Layer 2 protocol thanks to this new addition.
A transaction on the Bitcoin blockchain can take anywhere from a few minutes to several hours to process. Smaller transactions, however, are often completed in almost no time.
Cash App had previously supported Bitcoin Lightning Network transactions in a limited capacity, allowing users to pay invoices by scanning Lightning QR codes.
Cash App will now always use Lightning for QR-code-based transactions unless otherwise specified. Customers in the United States, excluding those in New York, can take advantage of this new feature once every seven days, up to a maximum of $999.
In 2018, Cash App introduced bitcoin trading, and since then, it has become popular in the United States and the United Kingdom as a means of making bitcoin purchases and sales. Over 44 million people are using the app monthly. In 2017, Bitcoin accounted for 81% of the app’s total $12.3 billion revenue.
A user can make a $10,000 Bitcoin deposit once per week, and a tax form is included in the app to track the transaction. The “Paid in Bitcoin” function allows users to automatically invest a set percentage of their direct deposit into Bitcoin without incurring fees. Transaction fees for regular business are typically around 2%.
According to a report by Cointelegraph, there are currently about 87,000 payment channels and 4,570 BTC locked in on the Lightning Network. There has been some slow adoption, with only a tiny fraction of the 19 million BTC in circulation currently on the Lightning network.
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