More countries are starting to install cryptocurrency ATMs. This allows the cryptocurrency world to keep expanding and reaching new individuals. But now, the first Lightning Network Bitcoin ATM has been developed by an Austrian start-up known as Coinfinity.
Lightning Network ATM
Coinfinity is an enterprise that provides Bitcoin and cryptocurrency solutions and it is based in Graz, Austria. The company, that is conformed by ten members, has created the first Bitcoin ATM that realizes transactions in offline mode. The information was released by the company on February the 1st.
Lightning Network is the technology that is expected to change the way Bitcoin is conceived. Enterprises are starting to implement this technology as developers focus on it. The Lightning Network ATM would allow people to buy Bitcoin and receive the money instantly and with no fee.
The ATMs may be installed in shops, shopping centres and private offices. Individuals are able to buy Bitcoin and other cryptocurrencies by placing their telephones in a scanner that would send the chosen cryptocurrency to their wallets. ATMs are a good way to buy cryptocurrencies. They are fast and safe, but the only negative thing is that it is necessary to pay a fee between 2% and 10%.
More ATMs are being installed all over the world. According to the Bitcoin ATM map there are 2160 Bitcoin ATMs in 62 countries and 25 different producers. In London can be found 79 ATMs, in Switzerland 26, in Warsaw 3, in Copenhagen 2 and in Prague 11.
Lightning Network to Change Bitcoin
The Lightning Network is expected to change the way Bitcoin is transacted. During the last months, Bitcoin has been suffering from high fees and low transaction times. Bitcoin has become more a speculative asset and a store of value than a cryptocurrency to make payments.
There have been several cases in which the cryptocurrency has been rejected as a means of payment. For example, we have covered before how Bitcoin payments are losing strength. The Payment Processor Stripe has ended support for Bitcoin and some shops are using less and less this cryptocurrency.
Lightning Network would allow individuals to send and receive Bitcoin payments almost instantaneously and with very low fees. Indeed, the Lightning Network is able to process millions to billions of transactions per second. That would allow Bitcoin to be a more competitive method to pay compared to credit and debit cards. Other cryptocurrencies have been used for to process transactions instead of Bitcoin, like Ether or Litecoin, which have lower fees and faster transaction times.
Some days ago, the first Lightning Network Transaction was performed in order to buy a VPN Router. This was an important moment for the cryptocurrency world and has ben called the ‘Lightning Network pizza’ as a reference to the first Bitcoin transaction used to buy two pizzas for 10,000 BTC. The transaction has been completed through a payment channel linked to TorGuard.
The user that performed the transaction commented about that:
“I’m just your average BTC enthusiast, who had a bit of extra time last weekend. I saw TorGuard’s tweet so I’ve decided to contact them. I enquired as to purchasing more than just a monthly subscription, their staff gave me LN peering information, I opened a channel, received an invoice, and here we are. It was all quick easy, painless and most importantly: instantaneous and free-free!”
It is important to remark, that even when the Lightning Network is being tested is not yet ready to be released. It’s having an important support and attention, but it is experiencing different bugs that could potentially harm users (missing funds).