What is Bitcoin Lightning Network?
Lightning Network is a revolutionary digital payment network that makes it possible to make nearly instant, highly secure, and low-cost Bitcoin transactions, without having to wait for them to be processed by the standard blockchain. This tends to make transactions faster and fees lower. The scalability, speed, and low cost of the Lightning Network make it an ideal payment solution for merchants and users alike.
At Xapo, we are proud to be the first bank in the world to support payments via Lightning Network. Due to this, our members are able to make lightning-fast Bitcoin payments at a low fixed fee of less than $0.01 per transaction*.
What does Lightning Network do?
The Bitcoin Lightning Network is a powerful second-layer solution for the blockchain that enables fast and secure, nearly feeless payments. It creates an on-chain transaction that sends bitcoins from one party to another, then creates multiple off-chain ""channels"" between those parties. In this way, multiple transactions can be processed at once without needing to wait for miners to verify each one individually. This makes it possible to carry out faster and cheaper transactions versus traditional bitcoin mining methods.
As the first bank to integrate with Lightning Network, Xapo Bank members are able to make instant Bitcoin payments with just a few taps on the Xapo Bank app.* US $0.001 at the time of writing. Subject to change.
* US $0.001 at the time of writing. Subject to change.
Xapo Bank is a crypto-enabled bank licensed by the Gibraltar Financial Services Commission. We give our members access to a US Dollar and Bitcoin account, successfully bridging the gap between traditional banking and crypto. USDC deposits into Xapo are immediately converted to USD on a 1:1 basis, giving instant dollar cash value with zero exchange fees.