We are stoked to offer all our customers Bitcoin purchases via the Lightning Network from now on. Whether in the app or via the web portal - now you can also stack your Satoshis with Lightning. The second-layer solution makes it possible to carry out Bitcoin transactions in seconds and with minimal fees. This update was particularly important to us as On-chain fees continue to rise with the growing popularity and use of Bitcoin.
In a next step, we will of course also deploy Lightning for our Bitcoin savings plans.
that Lightning network, a “second-layer” solution, addresses the so-called blockchain trilemma: the balance between decentralization, security, and scalability.
While Bitcoin's decentralization and network security are undisputed (there has been no successful attack on the Bitcoin blockchain so far), the deliberate limitation of transaction capacity per block results in longer waiting times and higher fees. This is where the Lightning network comes in and enables the quick and cost-effective processing of many transactions with small amounts outside the blockchain.
In comparison, you can think of it as a credit card transaction (Lightning), which is much faster and more efficient than a bank transfer (on-chain). A technology, so to speak, that builds on previous technology. If you are interested in the topic, you can find out more about Lightning in this detailed article.
To buy Bitcoin with Lightning from Coinfinity, you need either an LNURL or Lightning address. In the first step of Lightning implementation, we restrict payouts to these formats and gradually approach the extension with normal invoices (one-time invoice).
LNURLs are usually long and not intuitively readable by humans. It is therefore useful to only use it as a QR code. They are not intended for manual entry.
An example of an LNURL: LNURL1DP68GURN8GHJ7MRW9E6XJURN9UH8WETVDSKKKMN0WAHZ7MRWW4EXCUP0DAHXCETFDEJHXJAAZ37
A Lightning address, on the other hand, is a simplified and abbreviated representation of the LNURL and looks similar to an email address. However, the way it works is the same.
An example of a Lightning address: satoshi@coinfinity.co
We intentionally explain this in a very simplified way. If you want to understand that better, our Lightning developer Johnny has a great Deep Dive article written about LNURLs and Lightning addresses.
To receive Lightning payments, you need a Lightning wallet. As with normal Bitcoin wallets, a distinction is made between non-custodial and custodial wallets.
Non-custodial Lightning wallets give users full control over their own private keys and therefore over their Bitcoin. They usually help you manage payment channels, but the user keeps the private keys himself.
Unfortunately, there are few non-custodial Lightning wallets that support the specified address formats so far, but we'll try to list several options for you and hope there's something for you.
As described above, custody services are generally more user-friendly and require less technical knowledge, but should not be used to store larger amounts of money.
When buying Bitcoin via Lightning, simply enter your Lightning address or LNURL instead of your on-chain Bitcoin address as usual. Just try it out and send sats around the world in a matter of seconds!
Get the Coinfinity app and get started with Lightning now! ⚡️
