By Chinenye Anuforo
Paxful, a leading global peer-to-peer (P2P) fintech platform, announced that weekly transactions on the Lightning Network have increased significantly. Globally, deposit volume has increased 5x since the platform launched its Lightning Network integration in September 2021. In April this year alone, Paxful noted that deposit volume had increased by 54%.
In Nigeria, the volume of money sent on Lightning doubled from October 2021 to May 2022. A telling insight is that Paxful’s median Lightning send for 2022 is below $30, which is lower than its median amount of sending bitcoin. This is another point of evidence showing the usefulness of Lightning micropayments.
The Lightning Network is the cheapest option for Bitcoin micropayments due to the difference in network fees. This has global implications as Bitcoin now becomes a stronger financial competitor for everyday transactions. The Bitcoin network is capable of handling 5-10 transactions per second, but Lightning has the potential to process hundreds of thousands of transactions per second.
Transfer Bitcoin in Seconds
The P2P platform is optimistic that Lightning will highlight how Bitcoin is a reliable and cheap financial option for the exchange and boost Bitcoin adoption.
Ray Youssef, CEO and Founder of Paxful, said Lightning’s continued growth on the Paxful platform proves its effectiveness in fostering true financial freedom. “If you want to understand bitcoin use cases, give people access. Our users are Paxful’s top product hackers, and we’re excited to see them embrace Lightning. In the first week of May, the Nigeria was one of the countries with the highest Bitcoin trading volume on Paxful, alongside the United States, Ghana, China, and Kenya. Today, more than 70 countries use Lightning on Paxful .
“Overall, Bitcoin is still considered a speculative asset by many. We need to change that. The HODL mentality has its place within the Bitcoin community, but we also need to be inclusive of Bitcoin’s other use cases such as remittances, wealth preservation, and payments. That’s where Bitcoin Education comes in. At Paxful, we’re invested in initiatives that improve knowledge of Bitcoin and Lightning and how they provide everyday solutions for consumers, merchants, businesses, policymakers, and savings,” concluded Youssef.
A system built on top of the Bitcoin network, the Lightning functionality seamlessly integrates with Paxful’s platform and allows the company to keep user fees lower than traditional Bitcoin transactions. When users send or receive Bitcoins through the Lightning Network with their Paxful wallet, their Bitcoin balance is used in the same way as if they were transferring it over the Bitcoin network. All transactions are processed in seconds and Paxful users can use the Lightning Network for transactions with other people and to pay for goods or services.