Bitcoin Lightning Network is 1,000x cheaper than Visa and MasterCard: Data

April 21, 2023 Coin Telegraph

Glassnode data demonstrates that the Lightning Network outcompetes traditional payment networks in terms of commission costs.

Fresh data from Glassnode demonstrates that Bitcoin's (BTC) Lightning Network is significantly cheaper to use than legacy payment networks.

The median fee rate, or the cost of sending value across the Lightning Network, is 0.0029%, 1,000 times cheaper than that of MasterCard of Visa payment processors.

James Check, lead analyst at Glassnode, told Cointelegraph that the median fee rate, or the fee charged per 1 BTC sent across the Lightning Network, is currently 3,000 Satoshis (the smallest unit of Bitcoin). That is “equivalent to $0.84 to send $28,800 worth of value [...] which is a fee of 0.0029%.”

“Pretty remarkable when you think about it.”

In a post on the Nostr social media protocol, Bitcoin analyst Dylan LeClair noted that this rate is many times less than that charged by major credit card companies.

The Lightning Network, a layer-2 payments solution built atop the world’s largest cryptocurrency was first proposed as a way to make Bitcoin effective as a payment method. These data points demonstrate that it is not only fast but low-cost, with the mean fee rate has been steadily trending lower since November 2021.

Legacy payment networks such as Visa and Mastercard charge merchants a fee of around 2-3% per transaction, making them an expensive option for businesses. In an upcoming Cointelegraph documentary shot in Cape Verde, the business owner of one of the few businesses to accept Bitcoin explained that accepting foreign Visa and Mastercard costs over 8%.

Moreover, Glassnode's Check referred to users who run their own nodes and manage their own channels. Many Lightning users take advantage of custodial wallets, such as Wallet of Satoshi and Alby to make micropayments on social media apps such as Nostr.

Some Bitcoin early adopters have noted the growing preference for custodial solutions (as the Bitcoiner mantra is “not your keys, not your coin”), although semi-custodial solutions such as Fedi and Cashu could undermine reliance on fully custodial solutions.

Furthermore, the throughput of the Lightning Network could be called into question. Check explained:

“Of course, we must also consider that the typical channel is smaller than 1 BTC. The median channel size is 0.02 BTC and the mean is 0.08 BTC, so overall the Lightning Network remains well suited to payments below $1,000.”

In the below graph, the channel size is trending higher but still well under $10,000. In such an environment, payments over $1,000 may be better suited to the Bitcoin base chain in order to avoid payment failure or misfire.

CBDC Debate Heats Up: BIS Project Sparks Controversy Among Critics; Lynette Zang Warns of Dangers of CBDCs

April 16, 2023 Bitcoin.com

Brian Armstrong promised me $100 in Bitcoin — so where is it?

April 12, 2023 Coin Telegraph

Brian Armstrong promised me 0 in Bitcoin — so where is it?

Coin Telegraph

Is it possible that Coinbase CEO Brian Armstrong doesn't know how to use the Bitcoin Lightning Network? It could explain why he stiffed me.

Coinbase CEO Brian Armstrong owes me $100. That’s because he might not know how to use the Lightning Network, the instant payment solution built on top of Bitcoin.

Armstrong, who’s been building in the Bitcoin (BTC) space since 2012, recently tweeted that he would pay people who provided the “best examples” of people using cryptocurrency in Africa. “If you’re using crypto in Africa, reply with a short video (<30 seconds) or photo of how you’re using it,” Armstrong wrote. “Best few examples get $100 in crypto.”

If you're using crypto in Africa, reply with a short video (<30 seconds) or photo of how you're using it. Best few examples get $100 in crypto. Use hashtag #CryptoAfrica

And if you haven't already, try out self-custodial Coinbase Wallet - send feedback https://t.co/zWvaH1nerF
— Brian Armstrong (@brian_armstrong) April 7, 2023

This is the CEO of Coinbase, after all, so I shared a video of myself using Bitcoin in Africa, which was part of a 30-second segment of a recent Cointelegraph documentary covering Bitcoin in Senegal.

The tweet quickly became the most-liked and most-shared response to Armstrong’s query. (Crucially, the tweet referred to Bitcoin in Africa, not crypto in Africa, and it demonstrated the ease and speed of the Lightning Network.)

However, Armstrong appears to have ignored my submission, despite more than 600 likes and 100 retweets. The next most popular submission had just 50 likes. So, I reached out to some key opinion leaders, creators and influencers within the Bitcoin community to amplify the tweet. Wicked, an anonymous Bitcoin educator and data analyst, tagged Armstrong in a post, accusing him of “actively ignoring the #Bitcoin Lightning Network.”

My tweets auto-delete after some number of months, so there is no search history.

Lightning is great and something we’ll integrate.
— Brian Armstrong (@brian_armstrong) April 8, 2023

Wicked very kindly drew Brian’s attention to my tweet video about Bitcoin in Africa. The tweet, and Armstrong's affirmation that "Lightning is great and something we'll integrate," led to news outlets around the world reporting on Coinbase's next development. He then also tweeted that he had sent me the money.

Awesome! sent $100 to joe@coincorner.io

cheers
— Brian Armstrong (@brian_armstrong) April 8, 2023

Here’s where things get weird. Armstrong said he paid me the $100. He said he sent $100 to the Lightning address shown in my Twitter profile bio: Joe@Coincorner.io

Now, if you’ve never used the Lightning Network before, you’d be forgiven for confusing this address with an email address. But would the CEO of Coinbase make that mistake? Could the Bitcoin OG have failed to recognize that the request in my bio — which says “Send BTC to Joe@Coincorner.io,” surrounded by lightning bolt emojis — could be my Lightning address?

Side note: Running a Bitcoin node is mildly technical, and sending money on the Bitcoin blockchain for the first time is a little nerve-wracking, as the transaction takes roughly 10 minutes to confirm and we live in an instant world. But using the Lightning Network in 2023? It’s brain-dead easy. A walk in the park. Seriously.

“That’s a big call, Joe,” I hear you say.

Yep, it is. And I’ve got the receipts to prove it. It’s so easy to use the Lightning Network that I stand in the street in locations worldwide giving out Bitcoin to people on their brand-new Lightning wallets — and I film their reactions.

The most common remarks are “I didn’t know it’s so easy” and “Wow, it’s so fast.” The videos are on my YouTube channel. Here’s a video shot in France for the Cointelegraph YouTube channel where I give out Bitcoin:

So, please — let’s not pretend that Armstrong is overwhelmed by the complexity of sending money to my Lightning address. Moreover, funnily enough, Bitcoin advocates worldwide saw my tweet and took pleasure in sending me sats to show that my Lightning address is alive and well.

My phone blowing up with payment notifications.

Back to the story. Danny Scott, CEO of CoinCorner — a Bitcoin and Lightning company — was quick to point out to Armstrong on Twitter that he might have made a mistake in confusing Bitcoin and email, as Coinbase provides a “send to email” function.

Scott told Cointelegraph in an email, “Obviously, we know the address [that Joe shared] is a Lightning address, but clearly not everybody does.”

“So my guess is Brian knows very little about Lightning right now, in particular LNURL, Lightning addresses and other innovations being built out, which is perfectly fine, he's distracted, it happens, now we just hope he helps himself and the industry by turning their attention to what really has substance and long term value, Bitcoin and Lightning.”

It’s true: Coinbase offers trading for more than 250 different cryptocurrencies — that’s a lot of tokens to keep one’s eye on. And as Scott adds, “I can appreciate how busy he will be — this industry doesn’t sleep, and running a Bitcoin company myself, I know that feeling even at a smaller scale.”

To give Brian and ultimately Coinbase the benefit of the doubt, I waited a few days before writing this article. I have tweeted repeatedly at Brian (no reply) and I also reached out to the Coinbase Press Team. They told me that they would get to the bottom of it, but “My guess is that Brian is likely batching the sends at certain times." A day has passed since this message (more doubt-benefit-giving) and they’ve not sent an explanation.

The press team email was particularly left-field as it referred to “batching.” Batching is consolidating multiple payments into a single transaction on the Bitcoin blockchain, not the layer-2 Lightning Network. Again, they’re not familiar with Lightning. This adds further insult to injury: Could it be that the Lightning Network simply isn’t on Coinbase’s radar?

It’s been three days since Armstrong said he would send the money, and there have been some simply wonderful memes from the Bitcoin and wider crypto community.

*Brian the "LN Maxi" trying to blend in. Source: @Corndalorian*

Armstrong has been active on Twitter, while his company is busy launching new projects and winning insider trading cases for the over 250-plus crypto projects Coinbase hosts.

Meanwhile, I’m still waiting for my $100. But I’m also increasingly alarmed that the billionaire, crypto OG and Coinbase CEO Armstrong struggled to spot a Lightning address.

Joe Hall joined Cointelegraph as a reporter in 2021. He holds an MA in French and Spanish from the University of Edinburgh and a BA in languages from Sceinces Po Lyon.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin gaming enters Africa with local crypto exchange partnership

April 12, 2023 Coin Telegraph

Africa

The Bitcoin gaming economy gets a boost from Zebedee’s expansion into Africa, complementing its Brazil and Philippines operations.

Gamers in Africa can now send and receive small amounts of Bitcoin (BTC) while playing classic titles like Counter-Strike.

Zebedee, a fintech and payments processor targeting the gaming space, has partnered with crypto exchange platform Bitnob to offer payments and gaming reward options in Africa using the Bitcoin Lightning Network (LN).

Within the partnership, African users can earn Bitcoin through Zebedee-powered apps and games. Zebedee’s offering serves as a second layer in games that allows developers to replace vague in-game points rewards with satoshis, the smallest denomination of Bitcoin. Through the partnership with Bitnob, these, in turn, can be converted to a local currency like the Nigerian nairas.

Zebedee’s chief strategy officer Ben Cousens explained that the partnership was driven by game developers who had Bitcoin in mind for tournaments and other gaming rewards.

“If I’m Activision Blizzard or EA Games and I have 30 million players of my games in Africa, and I run tournaments or giveaways, I cannot pay those players on fiat rails — it is too expensive. I am limited to the U.S., and I lose money from loss of engagement. Try sending $0.01 to these territories on another rail,” he said.

“This is about the $180 billion video games market, not play-and-earn or crypto gaming.”

In general, Africa has been a growing area of interest for the Lightning Network, partly due to the LN’s ability to facilitate microtransactions . Bitcoin Senegal founder Nourou told Cointelegraph, “Microtransactions are our economic reality,” hence why he and many other African builders and developers are exploring the LN.

*Gamers can already earn Bitcoin by playing popular games such as Counter-Strike. Source: Zebedee*

Africa benefits from young demographics and a digitally native population. Cousens continued, “We’ve seen consistent evidence of high demand for our platform across the African continent, where the purchasing power of Bitcoin is considerably higher than markets like the U.S. and Europe.”

Indeed, the matchup of LN and gaming is a growing trend during the bear market. Cousens said it’s “A natural evolution of the interactive entertainment landscape, where ‘Rewarded Play’ (in lieu of unsustainable play-and-earn) provides meaningful performance uplift for game developers against a backdrop of slowing growth in mobile gaming revenue while engaging players in a fun and creative way.”

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains: Polygon Miden founder

The state of the Bitcoin Lightning Network in 2023

April 10, 2023 Coin Telegraph

Coin Telegraph

To what extent does the surge in the use of custodial wallets and difficulties in running a Lightning node undermine the Lightning Network?

The Lightning Network, a layer-2 payment solution built on top of the Bitcoin blockchain, is six years old.

Products, users and the amount of Bitcoin (BTC) sent on the Lightning Network (LN) has sky-rocketed in 2023, despite the price per Bitcoin slipping under $20,000.

The LN has benefited from the integration into the Nostr protocol — in which users can send one another satoshis (small amounts of Bitcoin) — and the proliferation of custodial and noncustodial LN wallets, and its formal integration in territories such as El Salvador and Lugano.

From Mediterranean cities to Senegal, the LN is also growing as a peer-to-peer means of payment. Nonetheless, despite its growth, concerns still stymie the network, according to key opinion leaders interviewed during Advancing Bitcoin Developer Conference in London.

Eric Sirion, co-founder of Bitcoin mobile app Fedi and maintainer of the Fedimint protocol, explained that running a Lightning node in 2023 is still difficult and that some people don’t bother when faced with the complexity:

“To keep your own Lightning node running, to keep well connected, like keep your connections up to date with the nodes that are relevant — it’s a part-time job essentially.”

Matthias Koller, co-founder of Swiss company Pocket Bitcoin, said, “It has become substantially easier compared to early 2018. However, it is still not ‘easy’ for the masses.”

“But it’s exciting to see the development around full node implementations and the progress that’s been made.”

Sirion, who wrote the open-source code Fedimint and now works on the Fedi team, explained that custodial Lightning wallets, such as Wallet of Satoshi, are popular among Bitcoin advocates. He’s right: It is the wallet of choice for Nostr, a space dominated by Bitcoiners.

However, the reliance on custodial wallets could be a problem for the LN. Trusting a third party with funds, such as Wallet of Satoshi, is contrary to the Bitcoiner mantra, “not your keys, not your coins,” Sirion said.

Furthermore, Koller explained that the reason many Bitcoiners end up sidestepping the “not your keys, not your coins” mantra is that some of the custodial solutions are just so easy. “It’s set up in seconds, ready to transact,” he said, noting:

“But in fact, it’s no different from keeping Bitcoin on an exchange — it’s not your Bitcoin. It’s risky if people aren’t aware of the risks involved and the amounts kept in custodial wallets grow in size.”

However, Koller conceded that custodial solutions are fine for “pocket money.” The LN is ideal for micropayments, but even so, trusting centralized wallet providers could erode privacy. In response to the rise in custodial wallets, one Twitter user explained, “If payments are being made from custodial mobile wallets to custodial mobile wallets it’s very simple to link senders and receivers.”

Sirion hopes that the rollout of Fedi will undermine the reliance on third parties and provide a straightforward and privacy-centric route to using Bitcoin and Lightning. Fedi uses the open-source protocol Fedimint in which trusted members of a community share ownership of Bitcoin:

“If you’re already using custodial service, at least use one where you have a reason to trust the people that are.”

Moreover, the reliance on Lightning custodial wallets could be in part due to the difficulties in running a Lightning node. Node software businesses, such as Amboss and Umbrel, attempt to remedy the issue with improved UX, but in comparison to downloading Bitcoin Core to run a Bitcoin node, there are more steps, and a deeper understanding of Bitcoin is required to run a Lightning node.

Furthermore, in the world of Venmo, Revolut and other near-instant centralized payment services, there’s a risk that Lightning’s free and frictionless payments do not necessarily solve a pressing problem. During Advancing Bitcoin, Alex Leishman, CEO of Bitcoin firm River Financial, told Cointelegraph, “Bitcoiners use Lightning mostly because it’s interesting and it’s cool. It’s not solving deep problems in their life.”

Koller joked that the LN is “Bitcoin on steroids. Fast, cheap and perfect for small, daily transactions.” Plus, it’s still substantially more private than Google Pay or using Visa or Mastercard at a checkout:

“The pain I feel every time I have to use a credit card online is just gut-wrenching. Give me Lightning everywhere!”

Leishman would like to see more people working backward from real human problems observed worldwide and see where Lightning can fit in. For example, in the West, the LN could resolve inter-institutional transactions.

“It can really move the needle on a number of things in the West and in the developing world.”

In El Salvador, some Salvadorans use the Lightning Network, but cash is still king. Leishman mentions the Taro protocol, which, once implemented, could allow for assets to be issued on the Bitcoin blockchain.

“Do people actually just want dollars? And does that mean we want to try to build stablecoins on Lightning with Taro?” he said.

These assets could be deposited into Lightning Network payment channels and transacted instantly. In theory, LN users could hold several balances in their wallets, including different stablecoins or dollars.

Currently, developers can mint, send and receive Taro assets on the test network of the Bitcoin blockchain. In the meantime, LN developers will continue to seek out more user-centric Bitcoin solutions.

Why Senegal rejects the CFA and is warming to Bitcoin: video

March 8, 2023 Coin Telegraph

Africa

Why is there a groundswell toward Bitcoin adoption in Dakar? And could it influence neighboring countries and regions to explore magic internet money?

Cointelegraph goes to Senegal, West Africa. The medium-sized African nation recently hosted a Bitcoin conference (BTC) and more and more merchants and customers are joining the Lightning Network.

Armed with a camera, a lightning wallet and a microphone, Reporter Joe Hall took to the streets of Senegal to peer under the surface of Bitcoin adoption in the capital city, Dakar.

As the Cointelegraph Youtube video highlights, Senegal has a young, digitally native population and in recent years, its become second nature for people to send money via mobile phones rather than banks.

A mobile money provider called Wave, for example, began in 2017 in Senegal and has since expanded to other countries in West Africa. It now boasts millions of users.

Much like Bitcoin, the mobile money revolution attempts to bank the unbanked and improve financial conditions for financially underserved populations. Its user experience is quite similar to sending money over Bitcoin’s Lightning Network, in that you scan a QR code or send money to a number, however, mobile money charges anything from 1 to 3% and can take a few minutes to confirm. It’s therefore a useful tool, but too costly for microtransactions.

In the video, Hall sends Bitcoin over the Lightning Network to a manager at Wave, who showed interest and surprise at the Bitcoin Lightning Network’s efficacy. In fact, many Senegalese were interested in receiving, acquiring or learning how to custody Bitcoin.

Speakers at Senegal's first major Bitcoin conference, DakarBtcDays.

The Dakar Bitcoin Days conference underscored the Senegalese’ interest in learning about and using Bitcoin. Founded by Nourou, Dakar Bitcoin Days is part of Bitcoin Sen, another pocket of budding Bitcoin activity in West Africa.

However, the overarching reason which could lead to greater Bitcoin adoption in Senegal is breaking the monetary chains of its colonial past.

In 1994, the value of the local currency, the CFA was sliced in half by a combination of efforts from France, the IMF and the World Bank. Senegalese fiat savings were decimated.

The scars of this monetary collapse and its residual regime remain in west africa and Senegal. The CFA money is not sovereign and it disempowers and disenfranchises people.

That’s why people are looking for alternatives, and some are turning to Bitcoin.

Snoop Dogg revealed as co-founder of Web3-powered livestream platform

March 6, 2023 Coin Telegraph

Audio Stream

Snoop Dogg has had a considerable presence in the Web3 creator movement since NFTs first gained popularity in 2021.

American rapper and actor Snoop Dogg has been revealed as one of the co-founders of a Web3-powered live streaming app called “Shiller" — adding to yet another Web3 partnership for the well-known hip-hop artist.

The app is described as a “live broadcast platform” that aims to combine Web3 technology with real-time live-streaming content. The rap star has been named as a co-founder of the app along with technology entrepreneur Sam Jones.

Get ready for the Web3 live stream revolution!

Say goodbye to the middlemen and hello to true creator empowerment with Shiller!

Apply now https://t.co/w43RvAGN3t pic.twitter.com/YV9H2Wa5LF
— Shiller (@shiller) February 11, 2023

It follows a wave of Web3 partnerships by Snoop Dogg in the last year.

In April last year, Snoop Dogg partnered with Sandbox metaverse to launch an NFT collection called “Snoop Avatars” and released a hip-hop single titled “A Hard Working Man,” which was later accompanied by a 50,000-piece NFT drop.

The rap star also partnered with Yuga Labs — the team behind Bored Ape Yacht Club (BAYC) and CryptoPunks — to perform on a metaverse-transformed stage at MTV’s Video Music Awards on Aug. 29.

Snoop Dogg also recently partnered with crypto casino Roobet, where he will serve as the firm’s “Chief Ganjaroo Officer,” according to a March 1 statement from Roobet.

As for Shiller, blockchain will feature heavily in the platform, allowing content creators to “token-gate” their streams and promote nonfungible tokens or other products from e-commerce websites.

These content creators can be paid out in cryptocurrencies such as Ether (ETH) or NFTs, which can be cashed out as fiat.

*A preview of the Shiller application. Source:* *Shiller*

It was slated for a January release but has been delayed until April, according to Shiller’s latest update on March 2.

Creator economy movement

The launch of Shiller appears to be part of a broader creator economy movement where Web3 will likely play a role.

While “Web1” enabled users to write HTML and read content, “Web2” enabled user-to-user interactions — which was brought to the masses by a few social media monopolies, such as Facebook, Google and YouTube.

The “Web3” movement aims to eliminate these intermediaries by providing creators with complete ownership over their content and the monetization that flows from it.

Decentralized messaging platforms are beginning to emerge too, with one named “Damus” attempting to become a “Twitter killer.”

Backed by Jack Dorsey, Damus went live on the Apple App Store on Feb. 1. It is built on a decentralized network that enables encrypted end-to-end private messaging, called “Nostr.”

The platform comes with built-in Bitcoin (BTC) payments on the Lightning network.

Jack Dorsey’s TBD launches ‘C=’ to improve Bitcoin Lightning Network

March 4, 2023 Coin Telegraph

Bitcoin Wallet

C= (pronounced C equals) aims to further the reach of the Bitcoin Lightning Network through added liquidity and routing services.

TBD, a division of Block (formerly Square) led by CEO Jack Dorsey, launched a new venture named c= (pronounced c equals) to improve the Bitcoin Lightning Network through tools and services.

The Lightning Network (LN) is a layer 2 payment network built to ease the mainstream adoption of Bitcoin (BTC) by enabling faster, cheaper and more reliable peer-to-peer payments. However, c= aims to further the reach of LN through added liquidity and routing services.

⚡️hello world. meet TBD’s @c_equals: https://t.co/j5ZYJmtS3J #lightning
— TBD (@TBD54566975) March 2, 2023

Since its launch, the LN’s liquidity and capacity have witnessed organic growth via real-world adoption. In addition, services like c= offer incremental upgrades to support the ongoing Bitcoin adoption globally.

*Visual representation of widespread Bitcoin Lightning adoption. Source: c=*

Through liquidity, services and infrastructure, c= caters to wallet users, businesses and lightning node operators for faster and cheaper payments. The official announcement read:

“We want to meet you where your lightning needs are. Are you a business looking to accept Lightning payments? A wallet in need of channels or inbound for your customers? A hardened plebnet veteran looking for your next big source?”

Layer 2 services collectively improving Bitcoin operations make it easier for people to adopt the ecosystem into their lives. If you want to accept Bitcoin as payment for your services, read Cointelegraph’s guide on how to get paid in BTC.

Jack Dorsey’s popular payments venture Cash App recently integrated crypto tax and accounting software TaxBit into its services. The move allows Bitcoin users an easy way to report taxes.

As Cointelegraph reported, Cash App launched its Bitcoin trading services in 2018 and rolled out BTC deposits the following year. The company claims to have over 10 million Bitcoin users.