Chainalysis to Offer Lightning Network Monitoring Service to VASPs in 2022

Chainalysis to Offer Lightning Network Monitoring Service to VASPs in 2022On December 10, the blockchain intelligence firm Chainalysis revealed that the company has added support for Bitcoin’s second-layer protocol the Lightning Network (LN). According to Chainalysis, firms like exchanges and virtual asset service providers (VASPs) can leverage the company’s Know-Your-Transaction (KYT) real-time transaction monitoring software in order to access compliant bitcoin deposits and withdrawals from […]

Bitcoin & cryptocurrency news

Lightning Speed: Podcasting 2.0 And Its Relationship With The Lightning Network

Will podcasting 2.0 be the next use case for the Lightning Network? The statement might induce skepticism, but Kevin Rooke presents a surprisingly good case. Prepare to receive the gas you needed to start your own podcast. The technology is just getting started, and the people are just getting comfortable with it. However, the logic behind Rooke’s argument stands.  Related Reading | Spiral BTC Releases Lightning Development Kit. Jack Dorsey’s Puppet Promotes It He starts with a statement that will surprise no one. “The Lightning Network’s architecture allows creators to earn directly from their biggest fans, in new ways that aren’t even possible on a fiat payment system.” That much we can admit. We know that closed platforms provide convenience and a sizable audience. However, “Apple takes a 30% fee on in-app payments, YouTube takes a 45% fee on ad revenues, and Facebook keeps all their ad revenue without paying their creators a penny.” On the other hand, “Email, websites, podcasts, and Bitcoin are all examples of open platforms.” They don’t offer an already captive audience, but, “anyone to plug into fully-formed networks of content and users with full interoperability between competing products.” This helps a lot. However, creators using these open platforms, “still rely on closed monetization platforms like PayPal, Amazon Affiliates, Patreon, or Google Adsense to earn income.” The Lightning Network Comes To Save The Day You already know this, the Lightning Network allows for micropayments that are almost free. Anyone can use it, and it’s approaching mass adoption by the minute. “Not only can creators now plug into an open monetization platform with hundreds of millions of users, they can even access a new type of monetization that was never before possible.” Those new types are, “real-time payment streaming, micro-tipping, and other monetization strategies that simply aren’t possible on fiat payment rails.” So far, so good. “Real-time payment streaming” via the Lightning Network is what Podcasting 2.0 is all about. However, it’s easy to miss why that is important. Crucial, even.  “Advertising is directly at odds with other monetization strategies like paid subscriptions. If only a small fraction of your listeners are willing to pay subscriptions for your content, any gains made from subscription revenues will cannibalize your ad revenue, as your total listeners fall by 95% or more.” That’s the problem with Patreon or similar services. You can monetize your biggest fans’ support, sure, but advertisers won’t pay for that small audience. Podcasting 2.0 provides the best of both worlds. BTC price chart for 12/11/2021 on Bitstamp | Source: BTC/USD on TradingView.com We’re Still Early. The Dawn Of Podcasting 2.0 Let’s check the stats out. That’s always fun. “There are 4,434,920 RSS podcast feeds on the internet today, but only 2,947 of them are on Lightning today. Put another way, only 0.07% of all podcasts on the internet can earn Lightning tips right now.” And, of course, only early adopters and people in El Salvador are using The Lightning Network. And from that group, only a few people will tip or pay in real-time for the content. However, “there is zero downside to enabling Lightning tips, and the upside can be a meaningful contribution to total revenue. It’s only a matter of time before the other 99.93% of podcasters figure this out.” And that’s not all, the Lightning Network enables a type of interaction that was not possible for the podcasting medium. Creators can know the exact moment that their listeners decided to tip them.   “Podcasting 2.0 apps also let listeners send messages and tips to creators while listening to a show, providing direct feedback with timestamps attached to every comment. This innovation represents a shift to a more social podcasting experience.” And ok, that feedback was already possible in YouTube livestreams. However, besides the blatant censorship, YouTube is a closed platform. The feedback stays with them and isn’t available for people consuming the podcast through other apps. That’s not the case with Podcasting 2.0. “Since RSS and the Lightning Network are both open platforms, comments are also interoperable across Podcasting 2.0 apps, so any creator can receive feedback from any listener using any app.” Conclusions About Podcasting 2.0 Another advantage that this new standard provides podcasters is that they can truly be platform agnostic.  “Since RSS and Bitcoin are complementary open standards, podcasters don’t have to risk alienating their existing listeners or worry about migrating their content to a new platform. All podcasters need to do is flip the switch and their Lightning tips and messages will seamlessly integrate with their existing RSS feed.” Kevin Rooke closes his masterclass with this: “As Podcasting 2.0 apps continue to build easy interfaces for listeners to tip their favorite podcasters, Lightning tips could even become a primary revenue source, without cannibalizing or interfering with a creator’s existing ad revenue.” Related Reading | Lightning Speed: Eight Mind-blowing Facts About The Lightning Network Do you see it now? Or is he exaggerating? In any case, the Lightning Network doesn’t have to provide a “primary revenue source.” If Podcasting 2.0 provides a secondary one that wasn’t possible before, plus audience interaction, that’s more than enough. Featured Image by CoWomen on Unsplash | Charts by TradingView

Bitcoin & cryptocurrency news

Lightning Speed: Eight Mind-blowing Facts About The Lightning Network

Welcome to “Lightning Speed,” a new section in which NewsBTC will explore the possibilities that Bitcoin’s Lightning Network opens. In this first edition, we will focus on Peter St Onge’s “The Lightning Network is About to Change the World” article. According to his bio, the academic “holds a Ph.D. in Economics from George Mason University, and a B.A. in Economics and Political Science from McGill University.” Make of that what you will.  St Onge was at the Free State Project’s Porcfest in New Hampshire when he had an epiphany. “The Lightning Network is now moving Bitcoin exponentially closer to becoming a true universal medium of exchange that is controlled by the people, not by governments.” That’s right. Bitcoin already won the store of value race, but, with the Lightning Network, it becomes the apex medium of exchange. What does this mean for the world? Lightning At The Porcfest Before we blow minds, let’s explore the Free State Project’s Porcfest real quick. St Onge sets the stage: “As we enjoyed the mild New Hampshire summer, people wandered over to buy $2 sodas with Bitcoin, paying instantly and with zero transaction fee. I watched patient bitcoiners onboard Lightning newbies, taking them from zero to a Lightning wallet full of fresh hot sats in literally 5 minutes. It was the iconic “buy a coffee with Bitcoin” on steroids.” Yes, #LightningNetwork is being used at #PorcFest2021. Ana sold a water to @jfcarpio as @Joe_Saz watches pic.twitter.com/sUou8otfP4 — Patrick Motorist (@BitcoinMotorist) June 27, 2021 This was before everybody and their grandmothers went to Bitcoin Beach to test the Lightning Network first hand. Watching the transaction’s speed and comfort, St Onge knew. This was “Confirmation that the Bitcoin developer ecosystem has now built the holy grail: Bitcoin as a true medium of exchange. One where transfers are instant, essentially free, and as easy to use as the simplest app on your phone.” St Onge’s Four Insights About The LN As A Medium Of Exchange The fees are really that cheap. St Onge recalls, “our sats party replicated what’s now going on across the world. Just last week at El Salvador’s now-famous Bitcoin Beach, 20,000 near-instant transactions went around with aggregate fees of $4.98. One-fortieth of a penny per transaction.”  Traditional banking can’t compete. “For perspective, that’s about 500 times cheaper than the credit card fee on a $5 cappucino, and it’s at least 4,000 times cheaper than the average credit card transaction fee.” It gets better. The fees are not correlated to the transaction’s total amount. “Note, 1/40 of a penny would cover essentially any amount — you could buy a house with Lightning for 1/40 penny.”  The Lightning Network doesn’t sleep. “It transfers instantly, 24/7 including holidays, and is able to leap national borders and regulatory gatekeepers with zero effort.” BTC price chart for 12/04/2021 on Tradestation | Source: BTC/USD on TradingView.com St Onge’s Four Insights About The Lightning Network’s Growth & Potential The network is growing exponentially. “Lightning Network statistics have exploded since May, with network capacity now expanding by an annualized 635%. As these new Lightning apps onboard millions of people, they then pass along and train newbies by word-of-mouth, creating exponential growth that can very quickly go from irrelevant to dominant.”  The project has been years in the making. “The original Lightning Network White Paper came out in 2015, and after heady growth through 2019, the Network was essentially moribund these past 2 years.” Most altcoins are no longer needed. “First, it knocks the legs out of competing “medium of exchange” (MOE) coins like Dogecoin, Bcash, Ripple, Litecoin, or their many knock-offs.”  This is just the beginning. “Just as the internet needed user-friendly interfaces (web browsers) before it could really change the world, Bitcoin needed user-friendly interfaces to grow beyond money and towards being the base layer — the “rails” — for decentralized services built on Bitcoin alone.” The Lightning Network is changing the world already. Because of that fact, NewsBTC created “Lightning Speed,” a feature about the possibilities that Bitcoin’s Lightning Network opens. Featured Image: jplenio on Pixabay | Charts by TradingView