1 New Development That Could Put Bitcoin Head-to-Head With Credit Card Companies
Clover, a leading payment solution company for businesses, recently announced that it will pilot a 90-day trial using the Lightning Network for customers to pay for goods and services using Bitcoin (CRYPTO: BTC).
The Lightning Network solves some of Bitcoin's main pitfalls that have limited the cryptocurrency's ability to become a viable form of payments for everyday purchases. Unlike some of the newer blockchains that boast blazing speeds and low fees, Bitcoin is relatively slow and costly to use on smaller transactions. But with the Lightning Network, Bitcoin can become just as fast and cheap to use as these other blockchains, and could even come to compete with credit cards.
The mechanics are a little complicated, but essentially the Lightning Network acts as a second blockchain where transactions can be processed faster and cheaper, and later added to the main Bitcoin blockchain. By using the Lightning Network, Bitcoin effectively becomes a feasible form of payment. And even better, to the delight of businesses, they don't have to pay those exorbitant credit card fees that take away from their bottom line.
Source Fool.com
