Lightning Network May Disrupt the $150M Payments Industry, According to Coinbase

According to cryptocurrency exchange Coinbase, the $150 billion global payments market might be significantly disrupted by the Lightning Network.

On top of Bitcoin, the Lightning Network is a layer-2 scaling solution that seeks to make transactions quick and affordable.

In a new blog post, Coinbase says the Lightning Network is targeting a more real-world use case compared to much of the speculative-driven growth on smart contract platforms.

According to Coinbase, the Lightning Network might be the invention that outcompetes the world’s leading payment processors, Visa and Mastercard, which are expected to generate $24 billion in revenue in 2021 by taking a cut of 2-3% of every transaction made using their cards.

Humble beginnings aside, the potential to turn crypto’s most valuable asset into a true medium of exchange has the power to bring greater financial inclusion to anyone with a smartphone. The ability to cost-effectively route fiat transactions over Lightning rails without users ever knowing they’re using Bitcoin can disrupt $150B+* a year industries.

What Visa/Mastercard is for fiat currencies, Lightning can be for Bitcoin. The combination of a universally accessible payment network atop the world’s first open-source protocol for money can help Bitcoin evolve into a true global reserve currency.”

Lightning Network has much potential

While Lightning has much potential, Coinbase notes that adoption is still slow. In addition, Lightning has to overcome the massive network effects of Visa and Mastercard.

“Lightning is still cumbersome for new users and merchants. Additionally, onboarding low-income users in developing countries remains a major challenge to fulfilling the promise of Lightning remittances.

Lastly, the lack of compliance and regulatory frameworks limit the ability for existing payment and banking service providers to onboard and serve a global customer base.”

According to Coinbase, developing nations with significant inflation and “more smartphones than bank accounts” would likely lead the way if Lightning Network is substantially adopted.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Lightning Network May Disrupt the $150M Payments Industry, According to Coinbase

According to cryptocurrency exchange Coinbase, the $150 billion global payments market might be significantly disrupted by the Lightning Network.

On top of Bitcoin, the Lightning Network is a layer-2 scaling solution that seeks to make transactions quick and affordable.

In a new blog post, Coinbase says the Lightning Network is targeting a more real-world use case compared to much of the speculative-driven growth on smart contract platforms.

According to Coinbase, the Lightning Network might be the invention that outcompetes the world’s leading payment processors, Visa and Mastercard, which are expected to generate $24 billion in revenue in 2021 by taking a cut of 2-3% of every transaction made using their cards.

Humble beginnings aside, the potential to turn crypto’s most valuable asset into a true medium of exchange has the power to bring greater financial inclusion to anyone with a smartphone. The ability to cost-effectively route fiat transactions over Lightning rails without users ever knowing they’re using Bitcoin can disrupt $150B+* a year industries.

What Visa/Mastercard is for fiat currencies, Lightning can be for Bitcoin. The combination of a universally accessible payment network atop the world’s first open-source protocol for money can help Bitcoin evolve into a true global reserve currency.”

Lightning Network has much potential

While Lightning has much potential, Coinbase notes that adoption is still slow. In addition, Lightning has to overcome the massive network effects of Visa and Mastercard.

“Lightning is still cumbersome for new users and merchants. Additionally, onboarding low-income users in developing countries remains a major challenge to fulfilling the promise of Lightning remittances.

Lastly, the lack of compliance and regulatory frameworks limit the ability for existing payment and banking service providers to onboard and serve a global customer base.”

According to Coinbase, developing nations with significant inflation and “more smartphones than bank accounts” would likely lead the way if Lightning Network is substantially adopted.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Visited 91 times, 1 visit(s) today