Lightning Labs Beta Tests Its First Paid Product, Lightning Loop
“Loop helps startups, node operators, and end-users send and receive on Lightning more efficiently,” CEO and co-founder of LL Elizabeth Stark said. “With Loop, users can move funds between the Bitcoin blockchain and the Lightning Network in a non-custodial manner."
The company notes the main focus for Loop is to create batched swaps. The principle is that a majority of bitcoin transactions contain similar information, and can, therefore, be ‘batched’ together before a swap is executed.
By batching swaps, the company hopes to make fees lower for users. Of course, batching requires significant volume to justify.
The company has already tested the technology in the alpha release, but hopes that volume can be achieved during the beta.
Bitcoin itself also uses a modified form of batching with its Segregated Witness (SegWit) protocol.
However, Lightning Labs’ Loop API will allow smaller single users to integrate the batching technology into micropayments. While this will cause some small delays in transaction processing time, Lightning anticipates that transactions will still be far faster than simple bitcoin payments.
According to its website, Loop fees vary between 0.05% and 1% and depend on wait time and on-chain fee conditions.
Meanwhile, as reported this week, LL raised USD 10 million to further develop the Lightning payments technology and scale the developer ecosystem. The company claims it has 4,000 developers currently building on the Lightning Labs platform.