Crypto News

Coinbase Highlights Lightning Network’s Potential Disruption to $150,000,000,000 Payments Industry

Crypto exchange Coinbase says that Lightning Network has the potential to disrupt the massive $150 billion payments industry.
Lightning Network is a Layer 2 scaling solution built on Bitcoin is set up and is intended to enable instant and low-cost transactions for BTC.

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

With Visa and Mastercard poised to take in around $24 billion in 2021 by collecting 2-3% of every transaction made with their cards, Coinbase says the Lightning Network could be the innovation powering the biggest payment processors the world will undercut.

“Apart from humble beginnings, it has the potential to be the world’s most valuable asset cryptocurrency into a true medium of exchange, the power to enable greater financial inclusion for anyone who owns a smartphone. The ability to cost-effectively route fiat transactions through Lightning rails without users ever knowing they are using Bitcoin can disrupt industries with over $150 billion* in revenue annually.

Lightning can be to Bitcoin what Visa/Mastercard is to fiat currencies. The combination of a universally accessible payment network and the world’s first open-source protocol for money can help Bitcoin evolve into a true global reserve currency.”
Source: Coinbase
While Lightning has a lot of potential, Coinbase notes that adoption is still slow. In addition, Lightning must 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 fulfill the promise of Lightning transfers.

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

Coinbase Says We Can Expect Developing Countries With High inflation and “more smartphones than bank accounts” will lead the way should Lightning Network prevail.

Featured Image: Shutterstock/Liu zishan

Source: Crypto News Deutsch

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