Twitter CEO Jack Dorsey quit his position to focus on his other company Square . He had become more invested in cryptocurrency and blockchain technology, just like Dorsey. We are now starting to see the benefits of Block’s embrace for crypto. This morning Cash App announced that it has integrated with the Lightning Network, which allows its U.S users to send bitcoin free of charge to any person worldwide.
Cash App has not made an official announcement. The feature was slowly being rolled out to Cash App customers prior to today. According to the company, the rollout will be completed in the “coming weeks” and reach all U.S. Cash App customers.
Cash App users can send bitcoin internationally once the app is live. This includes wallets for family and friends, as well as wallets that are self-managed, such BlueWallet or Muun wallet. With zero fees, users will be able send bitcoin to any merchant who accepts Lightning Network payments. Although this isn’t yet widespread, some merchants are beginning to accept Lightning payments. Customers can order pizza from the Lightning Network, or purchase gift cards.
Cash App’s integration with the Lightning Network could help to support the growing creator economy. Fans could send bitcoin to show support for a creator or cause if they accept Lightning payments.
Cash App explains these benefits. It points out that transactions on Bitcoin networks can take a while to process and incur higher fees than Lightning Network transactions. This is despite the fact that it has faster processing times. Its transactions are also conducted independently from the blockchain (offchain), which allows to lower the fees, time and energy consumption that would otherwise be required. The blockchain’s technology, decentralization and benefits will still be available to the Lightning Network. Transactions on the network are later consolidated into the main Bitcoin blockchain.
Dorsey had expressed interest in the Lightning Network, tweeting in 2019, that it was a “cool example” of the #BitcoinTwitter experimentation. Spiral, Block’s bitcoin-focused business , presented its Lightning Development Kit , which allows you to integrate bitcoin payments into any app. Spiral’s LDK is also powering the new Lightning integration for Cash App – Cash App is the largest and most popular payments app to use LDK at the moment, the company points out.
Block’s strategic vision is demonstrated in the rollout of LDK. One arm may create tools that can be adopted by other Block-owned companies.