The Lithuanian-based payment gateway provider, CoinGate, which offers a plug and play payment gateway for merchants to receive over 50 different cryptocurrencies including Bitcoin, Ethereum, and Litecoin, will soon implement sending and receiving payments over Bitcoin’s Lightning Network.
In a Reddit post making the announcement, the payments provider appropriately calls Lightning Network “the next major technological innovation in the Bitcoin space,” as it enables near instant transaction speeds and lower fees. CoinGate says that its adopting the new technology to further minimize the strain the firm’s transactions put on Bitcoin’s network, noting that they were also among the first payment processors to integrate SegWit – an alteration to Bitcoin’s transaction format that also speeds up transactions.
CoinGate warns that Lightning Network is still in its early stages and still buggy – both “Lightning Network itself, and in our implementation of it” – so only advanced users are recommended to try it out until an “intense testing phase” in their sandbox environment is completed and community feedback is used to troubleshoot and correct any issues that arise.
The firm plans to run pilot integrations in live environments through a number of select merchants that are eager to try out the new Lightning Network payment processing. CoinGate has also launched a Google Doc for merchants interested in signing up to test out Lightning Network-based payments.
Lightning Network is a unique off-blockchain scaling solution for bitcoin and other cryptocurrencies that effectively creates a second protocol layer operating on top of a blockchain, enabling cheap and ‘lightning’-fast transaction speeds.
To see the implementation in action, CoinGate is welcoming users to buy a cup of virtual coffee in their test shop. They’re also looking for feedback from both merchants and users experimenting with their Lightning Network implementation.
In addition to CoinGate providing cryptocurrency-based payment gateways to merchants, users can also purchase the cryptocurrencies Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Dash, as well as selling Bitcoins for Euros.