Bitcoin in the Lightning Network could serve as better money and essential payment technology for businesses if its advantages over traditional finance are evaluated, understood, and harnessed. Jack Mallers, founder and CEO of Strike a Bitcoin and lightning network technology company, at the Microstrategy conference 2023 mentioned that Bitcoin lighting technology is essential to solving a lot of business and corporate problems.
He defined Bitcoin as a superior technology, claiming that it’s an innovation that achieved a technological feat that was previously thought to be impossible before its existence. He added that “like the internet Bitcoin is a forward-thinking technology that’s built for a digital age that carries properties of global and decentral as opposed to central and local.”
However, Jack highlighted that the Bitcoin technology has been perceived as posing some concerns including volatility, slow settlement times, expensive, not scalable, taxation and regulation, however, “they are threats to a technology and not a framework or a blueprint to assess its viability to improve your business and solve its problems,” he said.
How Bitcoin and Lighting network can benefit Enterprises
According to Strike CEO, Lightning Network enables the scalability of Bitcoin, providing a distributed global settlement infrastructure with scalable internet-native payments for corporations and businesses. By utilizing Bitcoin as a digital bearer instrument, enterprises can eliminate the need for numerous intermediaries, simplifying financial transactions and monetary services for customers, he said.
The Lightning Network further creates a singular, open value transfer protocol that facilitates instant, inexpensive, and final cash payments. This technology can be utilized for various enterprise needs such as B2B payments, invoicing, global payroll, cross-border capabilities, foreign exchange, and liquidity management.
Jack mentioned that Bitcoin offers protection against inflation and serves as a superior savings instrument for corporate cash. Also, Bitcoin serves as a complement to existing financial systems while supporting both new and traditional industries. “It enables interoperability between companies like Amazon, PayPal, and Venmo through a public utility or open infrastructure,” he said.
Furthermore, Bitcoin and the Lightning Network enable features like micropayments, incentives, and rewards, expanding possibilities for enterprise applications.
How Strike is utilizing Bitcoin Lightning Technology to solve Enterprise problems
Strike offers a payment rail that allows businesses to connect their cash to Bitcoin and Lightning without actually needing to buy or hold Bitcoin themselves. Customers can move fiat currencies over Bitcoin without touching or holding the cryptocurrency. They don’t need to understand the technical aspects or worry about the volatility, taxation, or regulatory requirements.
According to Jack, one major advantage is the improvement in fiat payments. Strike’s customers experience a 60% better exchange rate for cross-border B2B payments compared to traditional systems like Swift and Interbank.
Furthermore, businesses can gain efficiencies by using Bitcoin as a payment solution, streamlining their payment processes. Jack highlights examples, such as MicroStrategy and Twitter, which utilize Bitcoin for micropayments, creator economies, and gaming. By embracing Bitcoin as a technology, businesses can tap into these emerging markets and benefit from the advantages they offer.
Jack added that businesses are repatriating revenue from Africa back into US bank accounts, enjoying favorable forex rates and same-day settlements. Shopify uses Strike’s technology to facilitate global payment acceptance, enabling instant settlement.
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