Physical Item Reportedly Purchased On Lightning Network For The First Time Ever

post image

Being deployed at the beginning of this year, Lightning Network is highly anticipated to solve the blockchain scalability problem. And it seems that the first steps have been already made. Cheered by the crypto community, there took place allegedly the first operation on the Bitcoin Lightning Network’s primary network. According to reports, the transaction was speedy and did not drug fees for it.

New Era of Instant & Low-Cost Transactions?

For the past time, bitcoin has been significantly backlashed for the high transaction fees and long waiting time. According to bitinfocharts.com, within the last three months of 2017 bitcoin median transaction fee displayed a rise from $1.5 in October to the fantastic pick of $34 on December 23, a day after bitcoin reached its record of $20,000 per unit. Currently, bitcoin median transaction fee fluctuates between $10 and $12.

Moreover, at the moment of writing, over 75,000 transactions were waiting in the mempool. And even though it is quite an understandable phenomenon, as just at the beginning of the month there were over 175,000 operations in the queue, still it is not the result that lots of crypto enthusiasts expect from bitcoin. The problem is that the more people pile into BTC to use it as an asset rather than pay for goods with it, the more the network becomes overloaded and it seems that nothing can be changed.

However, there is hope, and the Lightning Network could strengthen it. Two days ago, a Reddit user under the nickname btc_throwaway1337 informed about his fortunate transaction with the use of Lightning Network mainnet when he paid for a buy. The announcement was followed by over 1,500 Reddit users’ comments. The announcement was:

“I used Lightning Network’s mainnet (via lnd) to purchase an AR300M VPN Router through TorGuard, and it’s here! This may have been the first ever physical purchase on LN.”

Depicting the first experience of such an operation, the user btc_throwaway1337 said that it was swift, simple, and, most importantly, he was not charged any fees.

"I saw TorGuard’s tweet, so I decided to contact them. I enquired as to purchasing more than just a monthly subscription, their staff gave me LN peering information, I opened a channel, received an invoice, and here we are!” also added the user.

TorGuard, the company, from which he made a purchase, cheered the client in the official Twitter, suggesting it could have been the first such experience ever:

As the evidence of the transaction, the user revealed the transaction data, available on Smartbit. It demonstrated that the operation of the channel was just $2.40.

btc_throwaway1337 was able to use the idem channel for routing remuneration to and from others because TorGuard already has canals open with sellers and customers. Interestingly, the company is a purveyor of anonymous VPN, email as well as proxy services.

Lightning Network On The Stage

LN or Lightning Network has been a long-expected solution to bitcoin’s scalability problem. Although it has been deployed this year January, it is still being developed and remains an experiment. It is expected to use an off-chain protocol, which means that the users will be able to launch unreliable small payments channels to conduct one or several payment operations ‘outside’ bitcoin’s core – blockchain.

Mainly, these channels are located outside of the BTC blockchain, but the transactions will take place precisely in them. Once they are executed, all these deals will be distributed back to the blockchain as the single operation, though. Thus, the load on the blockchain is anticipated to reduce.

But there is still a lot of controversy over the LN work. That is why the user btc_throwaway1337 warned the other bitcoin enthusiasts about losing the money when executing transactions through the Lightning Network mainnet.

Tom Lee Stands By His $15,000 Bitcoin Prediction Despite Massive Fall
A few days ago Fundstrat’s research head Tom Lee predicted bitcoin’s price to spike to $15,000 by the end of the year once it passes the breakeven point....
Ethereum’s Biggest Upgrades Casper & Sharding May Roll Out Together
Ethereum’s team has been planning to present the novel technological updates to the system, but it seems that there might be some alterations taken before...
IMF Advises Banks to Create Own Cryptos To Withstand Digital Assets
According to a reсent IMF report concerning the monetary policy in the entire world in the era of digitalization, here is a probability that one day cyber...
A Coder Stored The Historic Korean Peace Declaration On Blockchain
On April 27, the history was made as the leaders of two countries with drastically different governments – communist and capitalist – signed a declaration...
Binance to Launch a Decentralized Crypto Exchange, Based on Blockchain
The crypto market is going to get enriched by another cyber money trading venue, and this time – based in the blockchain. The news has been announced by...
Hidden Mining Got To Microsoft Word
Experts of the Israeli company Votiro, specializing in the field of cybersecurity, found a vulnerability in the new version of Microsoft Word in the form...
Dogecoin's Network Is Scheduled For The First Time
The other day, there was information that the Dogecoin network is planning the first in its history of the hard-core - Dogethereum (DOGX).The developers...
Joker.buzz Is Going To Launch ICO
The scandalously known information exchange Joker.buzz, where the hacker group "Humpty Dumpty" sold off dirt since 2015, announced that it intends to raise...
New Report Shows China’s Intentions to Forbid Foreign Exchanges, ICOs
Earlier in mid-January Bloomberg, referring to people aware of the case, reported that Chinese government planned to ban internal access to Chinese...
Researchers Proved That Bitcoin’s 2013 Leap From $150 to $1,000 Prompted by One Person
There has been a lot of speculation concerning the possibility of some people or groups of people to trigger bitcoin’s price. For example, Russian Kaspersky...
Huobi Pro Launches Its Token Without ICO
The cryptocurrency exchange Huobi Pro on January 24 will launch its token based on the Ethereum ERC-20 standard. Huobi Token (HT) can be used to reduce...
‘Not a Payment System’ – Visa CEO Explained Why They Won’t Accept BTC
Just at the beginning of the month, several crypto-payment providers announced that their cards, which support crypto money, were not active anymore....
Top-5 Changes That Blockchain Can Bring in 2018
The previous year was quite positive regarding adopting blockchain technology as database and tech giants were moving forward in this sphere. Among them,...
Cryptobanks vs. Centralized Rivals: Who Will Win?
Several analysts have already expressed their belief concerning the hopeless future for traditional banks and payment systems once bitcoin and its brethren...
Confido: How to Raise $374,000 ICO and Disappear
The ICO Confido, which sold tokens called CFD, attracted $ 374,000 from investors and after that has completely vanished! The startup removed all information...