In Brief:
- Cash App announces that their users will be able to send bitcoins anywhere for free through Lightning Network.
- Using a QR code before confirming the details of payment, users can transact faster through the network.
- The service is available in most parts of the US till now except New York.
Cash App integrated Lightning Network, an open-source project developed by another company owned by Block, Spiral for the majority of its customers in the United States (except Newyork as they are not yet eligible).
With the addition of Lightning, Cash App users will be able to do everything from sending bitcoin to family members all over the world to using it to buy something as small as a snack at the mall.
To use the feature, Cash App users must first scan a Lightning QR code with their phone’s camera, then confirm the payment details and press “Pay.” This will transfer bitcoin to a Lightning or on-chain address.
The Lightning Network, also known as LN, is a layer-2 solution that adds scalability to Bitcoin. Lightning reduces the load on the Bitcoin blockchain by establishing a separate network where users transact and require few interactions with the Bitcoin blockchain in order to reduce fees and speed up transactions.
Bitcoin aggregates transactions into blocks every 10 minutes, and payments are considered secure after six blocks, or about one hour. Because the Lightning Network does not require confirmation of these six blocks, it is faster.
Last month, the company already announced through a notification within the app that it has integrated the Lightning Network. The rumor has been going around for months, but the wait has finally come to an end. Cash App had already been tested with a few customers in the previous months, and it employs decentralized Lightning technology to ensure bitcoin transactions occur instantly and are validated by the blockchain.
