CashApp now supports the Bitcoin Lightning Network
October 26, 2022 5:57 AM
Lightning Network Bitcoin purchases are capped at $999 per seven day period.
On October 25th, a new support page was added to Cash App, a mobile phone payment processing app developed by Block Inc., stating that the app now supports transactions over the Bitcoin Lightning Network. Users of the Cash App will now be able to send and receive Bitcoin (BTC) using the superior layer-2 protocol. In contrast to the Bitcoin blockchain, which can take anywhere from a few minutes to a few hours to process a transaction, Lightning's processing times for smaller transactions are practically instantaneous.
Users could already use Cash App to make Lightning Network-based Bitcoin payments for invoices, but only by scanning specially-created QR codes. Unless otherwise specified, the Cash App will now always use Lightning for QR-code based transactions. Customers in the United States, excluding those in the state of New York, can take advantage of this new feature once every seven days, up to a maximum of $999.
In 2018, Cash App introduced BTC trading, and since then, it has skyrocketed in popularity as a means of making Bitcoin transactions in the United States and the United Kingdom. In 2017, Bitcoin accounted for 81% of the app's total revenue of $12.3 billion. In total, over 44 million people use the app on a monthly basis.
Users are able to make weekly Bitcoin deposits of up to $10,000 and are given a tax form for use within the app. Using the "Paid in Bitcoin" function, it is possible to have a fixed percentage of one's direct deposit automatically invested in Bitcoin with no additional fees. Otherwise, the standard fee for a financial transaction is around 2%.
Right now, there are about 87,000 payment channels locked in on the Lightning Network and 4,570 BTC. However, Lightning's adoption has been slower than expected, with the number of coins on Lightning amounting to a negligible percentage of the 19 million BTC in circulation at present.