The Lightning Community strikes once more. In a small but vital growth for Bitcoin (BTC), a brand new kind of BTC handle has been launched: the “Lightning Handle.” These distinctive identifiers are particularly designed to be used on the Lightning Community, a layer-2 cost protocol that operates on prime of the Bitcoin blockchain.
A user-friendly addition to methods during which Bitcoin customers can ship, obtain and even elevate cash, Lightning addresses may be custodial, or customers can connect with their very own nodes. Crowdfunding is among the many hottest real-world use for Lightning Addresses.
Cointelegraph spoke to MetaMick, the chief govt officer of Geyser Fund, and Stelios Rammos, CTO, to raised perceive the best way to use Lighting Addresses and why crowdfunding is a low-hanging fruit for this know-how. Geyser Fund is a crowdfunding platform just like GoFundme however utilizing Bitcoin and Lightning.
Lightning Addresses are “Electronic mail-like identifiers that make it doable for customers to ship worth to one another by way of lightning. They’re simple to memorize and are reusable (in contrast to bolt11 lightning addresses),” defined MetaMick, the chief know-how officer of Geyser Fund. Cointelegraph tried out the service and managed to boost cash very quickly:
Creators can now obtain their undertaking contributions into their lightning addresses. ⚡️
Launching a crowdfunding undertaking has by no means been simpler!
— Geyser (@geyserfund) December 16, 2022
First developed by Andre Neves and Fiatjaf (the developer behind Nostr), Lightning pockets addresses may be created on custodial options akin to Pockets of Satoshi, CoinCorner or BitRefill, and shortly synced to Geyser Fund:
“You simply hyperlink up your pockets to Geyser, and all donations undergo straight in your pockets.”
Crowdfunding has lengthy been an space of Bitcoin and cryptocurrency curiosity. Due to Bitcoin’s censorship-resistant and self-sovereign properties, it is likely one of the most effective methods of sending cash on-line.
The primary widespread use case for utilizing Bitcoin to boost cash was the 2011 Wikileaks marketing campaign, the place Julian Assange raised hundreds of Bitcoin when entry to banking companies was minimize off. Extra lately, the Canadian Trucker Protests used Bitcoin when the Canadian authorities shut down USD-based crowdfunding options; it was an identical story with protestors in Nigeria.
Nonetheless, Lightning Addresses take funding a step ahead when it comes to each pace and see of use. Transactions on the Lightning Community may be accomplished nearly immediately, in comparison with the 10-minute common for normal Bitcoin transactions. Lightning is good for small frequent funds, akin to these made in brick-and-mortar shops, or for sending small donations to creators world wide.
And because of Lightning Addresses, Bitcoin customers can now elevate cash even faster and with an easy person expertise. Plus, Geyser avoids performing as a custodian as all funds are forwarded on to creators’ Lightning Addresses due to “hodl invoices.” The result’s a trustless and non-custodial course of, a key tenet of Bitcoin philosophy.
In the end, whereas there are nonetheless some hurdles to beat with the Lightning Community, akin to the necessity for extra user-friendly wallets and higher integration with current cost techniques, it’s clear that the Lightning Community has the potential to revolutionize the way in which funds are made, and cash is raised on-line.
As extra customers undertake the Lightning Community and make the most of the advantages of those new addresses, it’s doable that we are going to see a major shift towards extra environment friendly, cost-effective, and censorship-resistant funds on-line.