With PrimeBit Lightning payments you:
- Deposit and withdraw BTC instantly
- Pay per $0 transaction
- Stay 100% anonymous
When exchanging P2P contracts (often leveraged), you know timing is the key to successful trades. With LN payments, you can respond to the price action in real-time as you can transfer your funds in a blink of an eye.
Lightning Network - the definition
Lightning Network is a “layer 2” protocol. It works on top of the BTC blockchain and makes it possible to conduct peer-to-peer micropayments, a feature that is impossible to provide by on-chain transactions.
How does Lightning Network work?
You may consider it a “plugin” or “add-on” to the bitcoin blockchain. Two parties commit a funding transaction, and this way, open a payment channel. Within a channel, bitcoin holders can process LN transactions freely without writing them down on the blockchain. Exchanging tokens inside of a channel makes it possible to protect your anonymity better potentially.
The transaction is written down on the bitcoin blockchain only when a channel is closed by both or both parties.
What are some of the advantages of using the Lightning Network?
When moving BTC from wallet to wallet, you never know exactly how much you will pay for a transfer and how long it will take to confirm your transaction. That’s the natural feature of the decentralized bitcoin blockchain.
The LN protocol solves this problem. Transfers take milliseconds, and fees are so low that PrimeBit covers them for you. With PrimeBit, LN transactions are FREE FOREVER.
How can I make Lightning Network transfers?
It’s straightforward. To receive funds, you need to create an invoice, where you put down the amount. To make a deposit, generate an invoice on your PrimeBit account, scan the QR code with your mobile wallet or copy and paste the invoice address. The funds will immediately appear in your account.
To make a withdrawal, proceed the other way around. Create an invoice in your wallet, copy the address and paste it in the withdrawal field of the PrimeBit app. Read the detailed instructions on how to make the LN payments in our blog.
Which Bitcoin wallets support Lightning Network?
Unfortunately still, not all wallets have enabled the helpful feature. That’s why we have made a shortlist of trustworthy wallets supporting LN.
Is Lightning Network widely used?
The popularity of the payments system is on the rise. When El Salvador made BTC the legal currency, adoption accelerated. You can buy a cup of coffee or dinner and pay for it with Bitcoin via LN in that country.
Twitter announced it would enable Apple’s iOS users to tip the best content creators with bitcoins via Lightning Network. This is a huge step towards mass adoption by other tech companies.
Is it true that the Lightning Network is more anonymous than on-chain transactions?
Yes. While it is easy to trace every transaction on the bitcoin blockchain since it is open for everyone, Lightning Network can potentially provide the users much better privacy.
The addresses that open a channel write it down directly on the blockchain, while what happens inside the channel while it’s open is kept outside of the ledger. This way, LN, at least potentially, can provide its users a much higher level of anonymity and can even keep individual transactions undisclosed.