Lightning Labs, the developer of the super-fast Lightning Network (LN) transaction protocol, has raised $ 10 million in Series A funding round.
The news was announced by Lightning Labs CEO and co-founder, Elizabeth Stark, in a blog post on February. 5. The company plans to allocate the funds raised to the further development of the Lightning payment technology and the scaling up of the developer’s ecosystem.
In the same announcement, Lightning Labs also introduced the beta version of Lightning Loop, the company’s first paid product. Lightning Loop is intended to help startups, node operators and users more efficiently with sending and receiving on Lightning. These users can transfer money between the Bitcoin (BTC) block chain and the LN in a non-custodial way.
Stark has also revealed that the company has so far seen more than 30 companies that have integrated its node monitoring tool called ldn, with which node operators can track node use in real time. Reportedly, Network motivated developers to create a tool for preventively detecting node and network problems.
Lightning Network is designed to speed up blockchain-based transactions. It adds another layer to the Bitcoin blockchain and allows users to create payment channels between two parties on that extra layer. These channels can last as long as necessary, and because they are set up between two people, transactions will take place almost immediately and the costs are extremely low or even non-existent.
Over the years, the Bitcoin community has made various proposals to improve the scalability of Bitcoin. They still have to reach a clear consensus. Earlier in February, a group of researchers from the Massachusetts Institute of Technology unveiled the creation of a new cryptocurrency routing scheme to accelerate blockchain-based transactions.
The solution believes that transactions are executed with minimal blockchain involvement and claims to eliminate a scenario where one of the users in the joint account processes too many transactions.