Lightning Labs – the main team behind the Lightning network announced today, that they have secured 10M in Series A funding to further develop the payments technology and scale the developer ecosystem. They also announced launch of their Lightning Loop beta service, which will allow users to move funds between the Bitcoin blockchain and the Lightning network, in a non-custodial manner.
Lightning Labs is scaling!
Announcing our $10M Series A to fuel LN development, and the Lightning Loop beta release, a product making it easier send/receive #bitcoin instantly.
With 4000 developers and 30+ startups, the next decade of Lightning is on 🔥https://t.co/3P4gVm89OV— Lightning Labs⚡️ (@lightning) February 5, 2020
What’s The Lightning Network?
Often cited as a solution to the Bitcoin’s scalability problems, the Lightning network is a Layer 2 payment protocol. It is deployed for making near instant payments and rapid settlement of high volume of transactions, by offering multiple micro-payment channels, operating independent of the main Bitcoin blockchain. However, the payments would get updated on the actual Bitcoin blockchain later, when such channels are open or closed.
Lightning Network, if adopted widely and used properly, can theoretically relieve congestion on the Bitcoin network and result in fees savings. Traditionally, every transaction has to be processed by every node on the network, a time consuming and resource intensive task. Lightning network solves this problems, by offering transactions to be processed between multiple users or parties, operating an inter-connected web of channels, who can transact between themselves in a secure and decentralized fashion, without the need for each and every node to record/update transactions on the Bitcoin blockchain immediately.
They can also process “atomic swaps” – which can enable the conversion of cryptocurrencies among each other, without using exchanges or intermediaries.
The Lightning Loop
According to the official description, “Lightning loop offers the easiest way to manage inbound and outbound liquidity on the Lightning network”
The service has two components. Loop in system allows funds to be replenished via FIAT routing channels or exchange or other services. Loop out, on the other hand, allow merchants or users to send funds outside of the Lightning network to any other source on the actual Bitcoin blockchain, by managing capacity and re-balancing routing channels.
The Lightning Loop can aid in providing liquidity, reducing fees by managing payment channels, to route funds to “on-chain” services and users, configure wait times and transaction batching and refill/offload funds from Lightning channels in a single on-chain transaction.
The Lightning Labs And Funding Participants
The principal driving force behind the Lightning network, the Lightning Labs was launched in 2016, to build second layer payment protocol on Bitcoin blockchain. Since its inception, the Lightning Labs has worked on open source and secure system to allow transactions to be sent easily and efficiently. They also offer non custodial and trusted financial services.
An exhaustive list of the participants in the Series A funding (taken from the official medium post) is present below:
- Craft Ventures
- Ribbit Capital
Angel Investors and Funds
- Ross Stevens (CEO and Founder of Stone Ridge)
- John Pfeffer (Pfeffer Capital)
- David B. Heller (former co-Head of Securities at Goldman Sachs)
- Howard Morgan (Founder of First Round Capital)
- Avichal Garg (Founder of Electric Capital)
- Proof of Capital,
- CMT Digital
- Abstract, and others.
Shiba Inu Price Prediction: How High can SHIB Price reach by 2030?
Bitcoin Lightning Network Reaches 1000 BTC Capacity
Lightning Network Can Be Paralyzed With 0.25 BTCs Spend, Research Shows
PEPE Coin Price to Reach $5 in the Next Seven Days?
Bitcoin Lightning Network Touches 6,000 Nodes
Twitter Is Enabling Lightning Network Tips Through Custodial Strike
What is Lightning Network and How does it Work?
Lightning Network Capacity Grows Nearly 300% in Ten Days
Tippin: Send Bitcoin Tips via the Lightning Network on Twitter
Bitcoin’s Lightning Network: A Second Chance?
Arbitrum Overtakes The Lightning Network By 23X Crossing $2.6B TVL In 3 Weeks
Investing in the Next Big Thing: The Best Crypto VCs of 2023
Bitfinex to Launch Tether on the EOS Blockchain, Lightning Network
EVERYTHING You MUST Know About Celer Network
Ethereum WBTC Overtakes Lightning Network In TVL By 60.26%
Big News: Sequoia Capital will reduce its $213.5 million FTX investment to zero
Worldcoin Crypto: What is this AI Token and how to Buy Worldcoin?
Lightning Network Can Support ~35 Million Users At 3 Tx / Yr Average: LN Whitepaper
Top Crypto News of the Week in 5 minutes
MetaMask Adds Bitcoin: A Simple Guide on MetaMask Snaps
TEN Capital Hosting Emerge ICO Summit In Texas
You might also like
More from Bitcoin News
The narrative surrounding Bitcoin ETF and Ethereum ETF has become a focal point in the crypto community. When will the …
Even as some giants announce restrictions, the prices of crypto continue to rise. But what's the story behind this? Here's …
BTC has managed to stay afloat, refusing to drop. Let's delve into these events and explore the strength of the …