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Bitpay avoids Lightning and Liquid, saying that actual Bitcoin payments still dominate, accounting for 95% of the transactions

May 29, 2020

The pioneering crypto payment service Bitpay has shown that Bitcoin continues to predominantly dominate payments and has no plans to use second-tier solutions like Lightning or Liquid networks.

Bitcoin is often criticized as a payment method Because it is slow, the network can only process a handful of transactions per second and is expensive (the transaction rate recently exceeded $ 6). However, it is still the preferred payment method in Bitpay.

“March, Bitcoin is still that cryptoactive The largest and most popular share accounts for over 95% of the volume transactions for BitPay“The company’s marketing director, Bill Zielke, told Cointelegraph.

“Bitcoin Cash is in second place with almost 2%. Keep in mind that BitPay has been processing Bitcoin for almost 9 years and stablecoins for less than a year. “

Bitpay avoids Lightning and Liquid, saying that actual Bitcoin payments still dominate, accounting for 95% of the transactionsBitpay avoids Lightning and Liquid, saying that actual Bitcoin payments still dominate, accounting for 95% of the transactions

The processor automatically converts crypto payments into Fiat for merchants. Bitpay is one of the most well-known names for processing Bitcoin payments and it has thousands of dealers on its network. It was founded in 2011 as a pure Bitcoin company and its customers can now accept Bitcoin, Bitcoin Cash, XRP, ETH and a variety of stablecoins.

Blitz is not in our current plans

Zielke said that BitPay currently does not plan to use alternative second level options for Bitcoin transfer, e.g. B. the Lightning network. or Liquid’s Sidechain. These additional protocol layers have different offsets than the basic Bitcoin blockchain.

The Lightning network is practically a cached Bitcoin payment system that enables instant and almost free paymentsWhile Liquid is working on a third-party custody model to create a Bitcoin sidechain that is approved by an association of exchanges and other notable entities in the Bitcoin space.

“Lightning Network and Liquid’s Sidechain are not in our current plansHowever, we are constantly reviewing new and innovative alternatives and collecting information from customers about use cases, importance and priority, “Zielke told CoinTelegraph.

Especially Both Lightning and Liquid are available on the BTCPay server, as originally started as a protest against BitPay during the drama about the debate on the size of bitcoin blocks.

The growth of stable coins

Stable coins saw dramatic growth in 2020, and Zielke said so BitPay also saw exponential growth in the use of stable coinsAlthough it’s still a small part of the overall list.

“BitPay introduced PAX, GUSD and USDC last year and BUSD this year,” said Zielke. “Since then, At BitPay, stable coins have grown to around 2% of their total dollar volume and has successfully processed several thousand stablecoin transactions. “

Zielke said that The number of stable coin transactions processed by BitPay doubles every quarter.

On the other hand, BitPay has seen a huge surge in crypto payments for everything latelyFrom everyday groceries to gift cards and online game purchases.

“BitPay believes that much of the increase in cryptocurrency spending, both for basic needs and for others for fun, is due to the fact that people are at home because of the virus.”