Commission Free Bitcoin Payments Enabled By Block’s (Formerly Square) Cash App
In the final leg of 2021, Twitter CEO Jack Dorsey resigned to focus exclusively on his other firm, Square (now named Block), which had grown more focused on blockchain technology and bitcoin — much similar to Dorsey himself. Presently, we’re seeing the fruits of Block’s support of cryptocurrency, as Cash App revealed that it has embedded Lightning Network, enabling its US customers to commence fee-less Bitcoin transfer to any corner of the world.
Until now, the service has been gradually rolled out to Cash App clients, but Cash App had not made an official statement. The business expects to finish the complete the roll out in the weeks ahead, covering all Cash App clients in the United States.
Once available, Cash App customers will have the option of transferring bitcoin across the world, to any suitable wallet unrelated to the company, including the ones used by relatives or friends, or to a self-managed digital wallet, such as Chivo Wallet, BlueWallet, or Muun Wallet. Additionally, customers of Cash app will be able to transfer bitcoin for free to any business that supports Lightning Network payments.
Though this is not yet a widespread practice, a few shops have started accepting Lightning payments, enabling consumers to do activities like purchase pizza or obtain gift cards. The Lightning Network’s connection with Cash App may also assist strengthen the burgeoning creative economy, as admirers could donate bitcoin to show their appreciation for an individual artist or cause that embraced Lightning payments.
Cash App emphasizes the benefits of this system, stating that transactions on the traditional Bitcoin network might take longer to execute and incur greater costs, in comparison to Lightning Network — whose moniker is intended to reflect its faster abilities. Additionally, its transactions occur outside the blockchain (off-chain), which cuts down associated costs, time, and energy consumption.
However, the Lightning Network stands to gain from blockchain technology and decentralization, since the network’s trades will be aggregated and captured on the primary Bitcoin blockchain. Dorsey himself expressed his support for the Lightning Network in 2019, tweeting that it was a “interesting example” of the innovation occurring among #BitcoinTwitter users.
Spiral, Block’s bitcoin-centered subsidiary, has introduced its Lightning Development Kit (LDK), which enables easy integration of bitcoin payment facilities to any platform.
Cash App’s latest Lightning interface is also driven by Spiral’s LDK — and the business says that Cash App is the foremost and biggest payments focused app to embed LDK at the moment. The launch of LDK exemplifies Block’s strategic strategy, in which one division develops technologies that are used by rest of the Block-owned enterprises.