Square Crypto, the cryptocurrency-focused arm of FinTech giant Square, is making an effort to improve the cost and speed of Bitcoin transactions on its platform. Yesterday, the firm announced in a blog post that it had deployed a Lightning Development Kit (LDK), which will help it in its mission to bring Bitcoin to the forefront of payments. In the post, the company explained that with Lightning integration, users would be able to add the platform to their own Bitcoin wallets, thus making it possible to complete speedier and more secure transfers.
Faster, Cheaper Transactions for Everyone
The Lightning Network is a second-layer scaling solution that speeds up Bitcoin payments and reduces transaction fees. By integrating the technology, Square Crypto is essentially allowing developers to achieve higher flexibility when it comes to Lightning Technology and Bitcoin use by streamlining their wallets. Successful implementation is expected to drive up the number of Bitcoin addresses.
The company added that the Lightning Kit would simplify the process of adding Lightning capabilities to existing wallets, while improving support for multi-application and multi-device access to a single wallet. Users will also be able to make several trade-offs with regards to privacy and user experience, including external transaction signing and state backup customization.
“Today’s Lightning infrastructure is incomplete without features like these. Even though that makes LDK a big project, that’s also what makes it right for Square Crypto. And with the support of developers like ACINQ, Blockstream, Lightning Labs, and open-source developers everywhere, it’s only a matter of time until instant, low-fee bitcoin payments are as common as cash used to be,” the firm concluded.
Square Bets Big on Crypto
The addition marks one of the most prominent Lightning Network integrations so far. Last month, Bitfinex Chief Technology Officer Paolo Ardoino announced that the exchange had integrated the technology into its infrastructure, in what was the first time a crypto exchange will support it. As expected, the integration was conducted in a bid to provide Bitfinex users with the opportunity to transfer funds faster and at little to no fees.
As for Square, the company has taken a leading role in developing Bitcoin into the global currency and payment system that chief executive Jack Dorsey believes it can be. Apart from Square Crypto, the firm also has the Cash App, which makes it much easier for Bitcoin to be applied in payments and remittances, as well as in investments.
Two months ago, Square released its letter to shareholders outlining its performance in Q3 2019, and it revealed that the Cash App alone had brought in $307 million in net revenues and $123 million in gross profits. Further explaining, the firm showed that the app had seen $148 million in Bitcoin revenues, although high costs had eaten into its profits, leaving it with a net haul of $2 million across the third quarter.
Despite the low-profit margins, however, the firm explained that the Cash App had acquired more users in the quarter. As the firm reported, first-time buyers on its platform had doubled over Q2 2019. Its performances over the last quarter will be interesting to watch.