Popular crypto payments portal Coingate has initiated a trial of the Lightning Network (LN), currently applicable on just Litecoin payments. Coingate is a service that lets regular users as well as online merchants to buy, sell and accept payments in terms of Bitcoin and more than fifty altcoins.
As Veronika Mishura, the manager of the Coingate platform explained that even though the crypto payments firm usually processes a large number of Bitcoin payments, Litecoin transactions also make up roughly ten per cent of their total volume of transactions in a month.
The use of Lightning Network the facilitate Litecoin (LTC) payments is expected to introduce quite a few benefits and points of convenience for merchants who mostly make these transactions. Since the Lightning Network has more than one hundred nodes, it means that integrating it with the system of transactions will not only boost the speed of them, but also bring down the costs. This is expected to get more merchants interested in availing of Litecoin transactions over the network owing to the decrease in the amount of fees that are to be paid.
As Mishura reportedly commented, it may not always be practical for merchants to use cryptocurrencies for payments. However, that problem is taken care of if the cost of transactions can be dropped substantially.
Moreover, if you have read our beginner’s guide to Litecoin, you would know that this coin is meant for lightweight transactions, which is also expected to be a major factor in heightened adoption.
“VPNs are to be honest one of the most frequently used services by crypto-enthusiasts (what we see by our data). However, due to quite low price, it is usually a no-win to pay for it with Bitcoin or Litecoin; and that’s exactly what Lightning should solve. That’s what we are trying to showcase – paying even for low-priced products should be possible, convenient, and cheap using cryptocurrency.”
As of now, Coingate has a user base of 4,500 merchants who use the platform. The first company that will be able to take advantage of Lightning Network’s integration with Litecoin transactions will be Surfshark, a VPN provider.