The popular mobile payment service Cash App has released an update that enables faster and cheaper Bitcoin transfers (worth $19,489 under the BTC ticker) using its Layer 2 (L2) payment protocol.
The Layer 2 protocol addresses Bitcoin’s historical limitations, increasing speed while lowering transaction fees.
Cash App is developed and owned by Block. Last year, Twitter CEO Jack Dorsey resigned and joined Square (now called Block). He decided to give it his all.
This morning, the company announced that its Cash App has integrated with the Lightning Network, allowing US users to send bitcoin to anyone worldwide.
The declaration of the Bitcoin L2 integration was shared as an official Cash App application notice on Crypto Twitter:
“The news is real! @CashApp added #Bitcoin Lightning Network pic.twitter.com/zbbdqcx0dC — Yegor Petrov (@yeg0rpetrov) January 11, 2022.”
Last month, Dorsey was featured in a video with Lightning Development Kit (LDK). LDK is a service developed by Spiral. A Square subsidiary focused on developing the Bitcoin ecosystem. It allows developers to integrate Lightning protocols into Bitcoin wallets and related services.
Before leaving Twitter, Dorsey expressed interest in integrating the L2 protocol into Twitter’s and BlueSky’s newly launched chip services.
The feature has been gradually rolled out to Cash App customers. However, Cash App is yet to make an official announcement. It will reach all Cash App customers in the US.
Once launched, Cash App users can send bitcoin internationally to compatible external wallets. This includes family and friend’s wallets or self-managed wallets such as Chivo Wallet, BlueWallet, and Muun Wallet.
Users can send bitcoin to traders that accept payments for Lightning for free. While this is not a mainstream activity, some merchants have started accepting Lightning payments, allowing customers to order pizza or buy gift cards via the Lightning network.
Advantages of the Lightning Network
Cash App explains the advantages of this system, noting that typical Bitcoin network transactions can take some time to process and see higher fees compared with Lightning Network. The name is meant to convey its speedier capabilities.
Its transactions take place independently of the blockchain. This helps to reduce the fees, time, and energy usage that would otherwise be involved.
Lightning Network will still benefit from the blockchain’s technology and decentralization, as the transactions taking place on the network, are later consolidated and recorded to the main Bitcoin blockchain.
According to the latest data from Business of Apps, Cash App serves over 36 million users in the US and UK.
Bitcoin On Cash App Or Silicon Valley Tokens
Dorsey is a bitcoin enthusiast and a harsh critic of token sales and Web3. When rapper Cardi B asked, “Do you think cryptocurrencies will replace the dollar?” Dorsey bluntly replied, “Bitcoin will.”
As a leading investor in Silicon Valley altcoins, the company has made huge profits by liquidating pre-sale quotas to retail buyers. “Warren Buffett” in the making.
