Paxful Lightning Network Integration – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

Peer-to-peer bitcoin exchange Paxful announced that its platform has fully integrated the Lightning Network, Bitcoin’s second-layer scaling solution. The firm, one of the leading peer-to-peer trading platforms worldwide, will now allow its more than seven million users to transact bitcoin across the globe more quickly and cheaply.

“Bitcoin is hands down the best financial option for the people who really drive economies forward,” said Ray Youssef, Paxful’s co-founder and CEO, in the announcement. “But in order for it to succeed and usher in global adoption, we need to overcome the issue of scale. The industry’s greatest chance of Bitcoin scalability is through Lightning, which makes micropayments exceedingly cheaper and faster.”

Lightning enables cheap and fast bitcoin transactions by leveraging smart contracts to abstract small and frequent payments away from the Bitcoin network base layer. That abstraction occurs in the form of payment channels, in which users connect by jointly creating 2-of-2 multisig addresses, which they can then use indefinitely to transfer funds to one another. But even though only transactions that either open or close a Lightning channel get recorded on the Bitcoin blockchain, all Lightning transactions abide by the Bitcoin protocol rules.

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