Since the 2017 bull run, Bitcoin has made a remarkable move in terms of both price and adoption. Businesses that accept Bitcoin as payment are rapidly increasing. As the use of Bitcoin as a payment method among businesses grows, so will the most efficient and effective method of taking it. This is one of the ways the Lightning Network comes in as the scaling solution.
The Lightning Network is a second layer scaling solution built on top of Bitcoin’s base layer. The lightning network allows instantly settled transactions without the need for waiting for confirmations or worrying about the mempool or fees on the Bitcoin base layer.
Why Lightning Matters
The Lightning Network connects business and individual motivations. Payments are instantly settled, with ridiculously cheap fees, and users can send microtransactions. (Imagine being able to tip a friend or podcaster a few cents for contributing value to a discussion, podcast, or simply to quickly help someone in need.)
Processing fees for credit cards can be as high as 3%. These expenses are often passed on to the customer. Businesses have a counterparty risk when using payment systems such as Visa or Mastercard. Consumers can chargeback payment within 90 days of purchase and get their money back, even if they haven’t received the product or service!
A video that was released yesterday by Trader University broke down how Kroger, a popular grocery chain could potentially increase their net margins by 100% with the Lighting Network. The average margin is 2%, by reducing credit card processing fees the organization could increase their margins to 4%! Watch below.
Our payment infrastructure offering is available to enterprises, small businesses, and individuals. Our specialized support and development staff handles all of the setup, maintenance, and backups, and provides you with the finest option for accepting Bitcoin payments.
Learn more and sign up for a free 7-day trial, click “get started” on our homepage. We’d be delighted to address any questions you might have.
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