A leader in Bitcoin-enabled gaming among iGaming brands, such as Bitcasino.io and Sportsbet.io, the Coingaming Group, is forging ahead with plans to implement Bitcoin’s Lightning Network in-development solution with a closed beta in progress.
While industry leaders in the Bitcoin economy continue to work with Segregated Witness (SegWit) upgrades to the Bitcoin network, Estonian-based Coingaming Group is already miles ahead in embracing Bitcoin’s in-development solution to its ongoing scalability issues: Lightning Network.
Lightning Network is an “off-chain” solution that allows participants to open a direct payment channel with each other, allowing for unlimited micropayments to be made both ways instantly, without broadcasting directly to the blockchain. This solution has the potential for much quicker settlements, vast reductions in transaction fees and added levels of privacy.
To conduct transactions, participants assign bitcoins to an open channel, confirming the amount each party can redeem, with both transaction parties mutually signing off on any spends and the most recent balances being updated within a channel ledger.
The channel interacts with the Bitcoin blockchain at two instances: when the channel is opened (with a transaction broadcasting out the balances of the channel) and when the channel is closed (broadcasting the most recent state of balances for recording on the blockchain). This potentially allows for greater speed and flexibility to all channel participants. Confirmation time becomes is being cut down and transaction fees become cheaper, while the burden on the Bitcoin network is being lessened.
Coingaming Group CTO Reio Piller believes that the full-scale adoption and propagation of Lightning Network could become a catalyst reinvigorating Bitcoin as the world’s most recognized and most used cryptocurrency, while cementing its reputation as a means of payment.
Piller added that the beta testing currently being carried out with selected users across its Sportsbet.io and Bitcasino.io brands would keep them firmly in their position as a leading Bitcoin gaming operator. This was also in line with their customer-centric values, ensuring that transactions remain the industry’s fastest while preserving the user experience.
The Coingaming Group was founded in the early age of cryptocurrency use in online gaming and quickly established the brand as industry pioneers providing customers with fully functional wide offerings resulted in highly enjoyable user experience. The operator expects that Lightning Network will become a critical aspect of all Bitcoin-led iGaming companies for a long time to come and expresses pride for being the forerunner in introducing this scalability solution to the industry.
As its name suggests, Lightning Network is a solution for near-instant blockchain payments that do not rely on block confirmation times, secured by smart contracts. With payment times measured in fractions of a second to seconds, it is capable of settling up to billions of transactions per second across the network and paves the way for cross-chain atomic swaps (transactions between different cryptocurrencies on different blockchains).
While mostly still in testing phase, Lightning Network transactions have already begun appearing on the Bitcoin mainnet this year, with the Lightning mainnet explorer recording more than $33,000 in bitcoin already transacted via Lightning Network.