NetCents Technology Inc (CSE:NC) (OTCMKTS:NTTCF), the cryptocurrency payments group, said Thursday that it is integrating the Lightning Network into its cryptocurrency merchant gateway.
In a statement, the Vancouver-based company explained that the Lightning Network is a "Layer 2" payment protocol that operates on top of blockchain-based cryptocurrencies, enabling “near instant transactions” with extremely low or non-existent blockchain fees for users regardless of network congestion.
Lightning Network will enable the company to complete payments off the blockchain and allow the company to process over 1 million transactions per second, said NetCents.
"As part of our unrelenting drive to provide a complete merchant and user experience for cryptocurrency payments, adding the Lightning Network was a logical enhancement to our platform," said NetCents CEO Clayton Moore.
The company said the decrease in blockchain transaction fees and increased transactions scalability will allow NetCents to target a wider selection of merchants. It removes the limitations of cryptocurrency as a method of payment for microtransactions at quick service locations like stadiums and coffee shops, meeting the growing demand for cryptocurrency payments which are growing to 1 million transactions daily in 2020, said the company.
NetCents believes it is well-positioned in the market as it is already operates a robust payments platform which is growing its transactions 40% monthly.
"I launched my first company in the payments industry back in 2001, and I have to admit that I have never been more excited about my work,” said Moore.
“Cryptocurrencies have promised the disintermediation of financial services monopolies since bitcoin was created. It is invigorating to be creating pathways that will facilitate bringing efficient transactions to the billions of unbanked and underbanked."
The NetCents Technology boss said that in 2017 he pivoted NetCents from traditional payments to cryptocurrency.
“I am so happy to see that decision position our company for future success," said Moore.
"Today, we're one step closer to bringing bitcoin to a billion people," said Lightning Labs CEO Elizabeth Stark.
Thanks to increasing demand for the company's crypto banking stack and asset management system, NetCents will also be integrating the Lightning Network for users' deposits and withdrawals to provide the scale required by large financial institutions and micropayments for gaming platforms.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive