Bitcoin Marketplace Paxful To Integrate Lightning Payments
Peer-to-peer Bitcoin marketplace Paxful is set to add Lightning payments integration to its global platform.
The Bitcoin marketplace is joining a number of other cryptocurrency exchanges such as Bitfinex, Kraken and OKCoin, who it partnered with last year, in supporting Lightning Network integration.
It’s expected that once it is fully integrated Paxful users will be able to seamlessly transact with each other much faster and cheaper.
Bitcoin Marketplace Paxful Beta Testing Lightning Network
It’s believed that beta testing is already underway and that a gradual roll out will take place allowing users of the biggest Bitcoin marketplace to transact much quicker and cheaper.
Although the layer two scaling solution is still in its experimental phase, the peer-to-peer exchange has decided to integrate it, but will limit transactions in the early days.
According to Paxful co-founder Artur Schaback, the Bitcoin marketplace hasn’t decided on the maximum value of deposits, but it will be around $500. These limits reflect Lightning Network’s limited capabilities in its current state.
The limits are there to protect Paxful’s clients in the early days. However, as Lightning evolves and as more exchanges adopt the tech, it will make it much faster to send Bitcoin between exchanges and open up faster arbitrage opportunities.
Conversely, it will also reduce price differences between exchanges making a global Bitcoin price more compact than what is today.
What is Lightning Network?
Bitcoin’s Lightning Network is a layer two scaling solution that allows BTC transactions to be sent in milliseconds for a fraction of a penny.
It’s designed to take the weight off the main Bitcoin blockchain, enabling millions more payments to happen, and is seen as the technology to help Bitcoin become a peer-to-peer money and not just digital gold.
Lightning Network is still in its early stages, but several Bitcoin companies such as Strike, Blockstream, and gaming companies are beginning to build on it and integrate it, which is helping speed up its adoption.
What Is Paxful?
Paxful is a peer-to-peer Bitcoin marketplace that offers more ways of buying and selling Bitcoin than any other platform.
Unlike traditional exchanges, however, Paxful is only peer-to-peer. The Bitcoin marketplace brings buyers and sellers from pretty much anywhere in the world who agree on a buy/sale of Bitcoin
You can trade Bitcoin for almost any national currency, Walmart Moneycards, Amazon Gift Cards, and it even allows you to buy Bitcoin anonymously, if complete privacy is your thing.
Buyers and sellers are protected with Escrow payments and nothing is finalized until both parties are satisfied. It’s a great way to buy Bitcoin, especially if you’re from a country where the currency isn’t globally accepted or if you want to get rid of your gift cards.
Paxful also partnered with Ternio last year and are set to launch a crypto debit card. The Blockcard allows users to do anything a standard debit card does, but also facilitates BTC to USD transactions.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.