The Lightning Network has the potential to streamline and reduce the costs of fiat currency payments, Banco Santander said in an article published on its website. This and more news in this practical daily summary so that you are always informed with the most recent events that occur within the crypto world.
Lightning Network in payment systems
📍‌Banco Santander talks about the potential of Lightning Network in payments. The advantages that blockchain networks and cryptocurrencies offer to payment systems are not easy to ignore, which is why the world's leading banking entities continue to recognize their great potential. This is the case of Banco Santander, the Spanish bank with more than 9.800 branches around the world, which has published a report article highlighting the potential of the Lightning Network for making instant, borderless micropayments with very low commission costs.
In its article, Banco Santander noted that the Bitcoin-based Lightning Network offers an efficient solution to the blockchain scalability problem, being able to support millions of transactions per second.
Another advantage of the Lightning Network that Banco Santander highlighted is its ability to send small amounts of money with much lower commission fees compared to the main network and even lower than many traditional payment services. Banco Santander also highlighted self-custody as a right that cryptocurrencies respect and that users should not give up when using them. “Ultimately, this network eliminates the risk of delegating custody to third parties,” the bank said about the Lightning Network.
The entity also detailed how the Lightning Network works, praising its payment channel infrastructure for executing instant transactions.
In addition to this, the bank indicated that the technology used by the Lightning Network has sparked great institutional interest in Bitcoin, attracting several companies and startups, such as Shopify and McDonald's, which are implementing the network to build their own payment systems. Other companies such as Blockstream and MicroStrategy and governments such as that of El Salvador are also innovating with this technology, the entity highlighted.
Banco Santander is one of the Spanish banking system's pioneers in the crypto world. In 2021, the bank issued its first blockchain bond and began facilitating Bitcoin investment for its clients.
Crypto companies seek advice in El Salvador
📍‌50 Bitcoin-related companies attracted by El Salvador's crypto-friendly legislation. This was reported by Asobitcoin, the organization created by the national government to promote initiatives related to the use and adoption of Bitcoin in the country. According to the organization, more than 80 companies have shown interest in El Salvador due to its favorable regulation towards cryptocurrencies, registering with the Central Reserve Bank as Bitcoin and virtual asset service providers.
50 of these companies have been receiving advice from Asobitcoin, which offers legal, financial and immigration guidance for those seeking to establish operations in El Salvador.
Algorand releases a new update
📍‌The new Algorand update is focused on reducing block times by approximately 3.3 seconds. With this, the network can increase its speed by 10% and ensure instant finality of transactions. According to a publication conducted by the Algorand Foundation, faster block times will power a wider range of real-world applications on this network.
Algorand is celebrating its 4th anniversary since its implementation in June 2019. The upgrade is part of its anniversary celebration and is in line with the network’s vision of offering a familiar user experience comparable to Web2 applications, along with the innovation and decentralization that characterize Web3.
Big banks support Bitcoin
📍‌CACEIS, the investment arm of Crédit Agricole, receives a license to hold cryptocurrencies. La license, granted to the entity this week, allows it to trade and hold digital assets.
Michael Saylor, CEO of MicroStrategy, highlighted that Crédit Agricole is one of the financial institutions that is providing support to the world's most important cryptocurrency. Saylor also he highlighted that not only financial institutions and bankers have become interested in Bitcoin, but also many legislators, asset managers and presidential candidates.
Continue reading: Block launches beta of Bitkey, a new Bitcoin wallet to facilitate self-custody
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
