Lightning addresses allow individuals to crowdfund Bitcoin with lightning-fast network speeds and without nodes.
The Lightning Network has struck again. In a small but significant development for Bitcoin
a new type of BTC address was introduced: the “Lightning address”. These unique IDs are specifically designed for use on the Lightning Network, a Layer 2 payment protocol that runs on the Bitcoin blockchain.
As a user-friendly addition to the means by which Bitcoin users can send, receive, and even collect funds, Lightning addresses can be custodians or users can connect to their own nodes. Crowdfunding is one of the most popular real-world uses of Lightning addresses.
Cointelegraph spoke to Geyser Fund CEO MetaMick and CTO Stelios Rammos to better understand how to use lighting addresses and why crowdfunding is a low-hanging fruit for this technology. Geyser Fund is a crowdfunding platform similar to GoFundme but uses Bitcoin and Lightning.
Lightning addresses are “email-like identifiers that allow users to send values to each other via Lightning. They’re easy to remember and reusable (unlike Bolt11 flash addresses),” MetaMick, director of Geyser Fund technology, explained to Cointelegraph, who tried the service and was able to raise funds in no time:
Originally developed by Andre Neves and Fiatjaf (the developer behind Nostr), Lightning wallet addresses can be created on custodial solutions such as Wallet of Satoshi, CoinCorner or BitRefill and quickly synced to Geyser Fund:
“Just link your wallet to Geyser and all donations go straight to your wallet.”
Crowdfunding has long been a focus area for bitcoin and cryptocurrency. Thanks to Bitcoin’s censorship-resistant and self-sovereign properties, it’s one of the most efficient ways to send money online.
More than 20 types of plug-and-play Lightning wallet addresses are available. Source: Geyser
The first widespread use case for using bitcoin to raise funds was the 2011 Wikileaks campaign, where Julian Assange raised thousands of bitcoin when access to banking services was blocked. More recently, protests by Canadian truckers used Bitcoin when the Canadian government shut down USD-based crowdfunding solutions; It was similar with demonstrators in Nigeria.
However, Lightning Addresses encourages promotion in terms of speed and usage perspective. Transactions on the Lightning Network can be completed almost instantly, compared to the 10-minute average for regular Bitcoin transactions. Lightning is ideal for frequent small payments like those made in stores or for sending small donations to creatives around the world.
And thanks to Lightning addresses, Bitcoin users can now fundraise even faster and with a simple user experience. Additionally, Geyser avoids acting as a custodian, as all funds are sent directly to creators’ Lightning addresses via “hodl invoices.” The result is a trustless and non-custodial process, a key tenet of the Bitcoin philosophy.
Related: No Medical Advice: Bitcoiner Implants Lightning Chip to Make BTC Payments by Hand
Ultimately, there are still hurdles to be overcome with the Lightning Network, such as B. the need for more user-friendly wallets and better integration with existing payment systems, but it is clear that the Lightning Network has the potential to revolutionize the way payments are made. , and the money is collected online.
As more users adopt the Lightning Network and take advantage of these new addresses, we may see a significant shift towards more efficient, cheaper, and censorship-resistant online payments.