Lightning Labs, a Bitcoin payment company backed by Twitter CEO Jack Dorsey, has announced raising $10 million funding in Series A round to develop payment network.
The company has launched its Lightning Loop service in beta to help customers overcome bottlenecks in Lightning liquidity.
CEO Elizabeth Stark said:
“I think this funding round is another confirmation that the Lightning Network is getting real. Our first lnd beta was released less than two years ago, and by now a whole new crop of startups that didn’t even exist yet is building on top of the infrastructure that we provide.”
Stark also indicated that the company aims to develop payment network, and this was the main goal of the fundraising.
Founded in 2016, Lightning Labs plans to accelerate the efforts of adopting blockchain-based technology. The company’s network allows customers to open payment channels between other parties for long periods.
The Lighting Network is distinguished by its high speed and low cost of transferring money and implementing the different payment activities with the cryptocurrency Bitcoin.
CTO Olaoluwa Osuntokun said:
“Lightning Loop is a scalable commercial submarine-swap service. If you visualize it, the user makes a loop with themselves, crossing the on-chain and off-chain boundaries.”
Over the past years, cryptocurrency enthusiasts proposed several ideas and tools to make the best use of the various financial services. Researchers at Massachusetts Institute of Technology came out earlier this month with the idea of developing a Blockchain network for executing transactions based on digital currencies.
“Another big advantage is that with our latest lnd release, you can combine Lightning Loop with multi-path payments: a user can top off, or make more space for receiving in several channels at the same time, at the cost of only a single on-chain output,” Osuntokun said. “We also offer discounts for users if they want to wait a bit longer for their swaps, so we can batch them together in one on-chain transaction to minimize fees.”