David Marcus, the Chief Executive Officer of the crypto payment platform Lightspark explained why it is so crucial to have a global payment system while speaking at the CNBC Squawk Box this Monday. The CEO also highlighted the company’s project around the lightning network and how the technology serves as a universal protocol.
The Lightning Network is a layer built on top of Bitcoin that uses micropayment channels to enhance scalability and cost-effectiveness. This technology solves common Bitcoin issues by introducing a method for off-chain transactions.
Lightspark is the easiest, most reliable, gateway to Lightning, enabling money to move just like bits and bytes do on the Internet. The network is an open, low-cost, interoperable payment network that settles in real-time. Now businesses could send and receive payments within seconds, create novel payment experiences and create new business models.
Highlighting the platform’s agenda, David Marcus cited,
What we’re trying to do is turn Bitcoin into a real payment global payment Network.
The company also aims to solve the challenges in cross-border payments along with Bitcoin. The current state of cross-border payments is seen as inefficient, which lacks a universal method for transferring money over the Internet. Different countries have different formats for bank account numbers, and international wire transfers could be costly and time-consuming.
Marcus emphasized the importance of having a universal protocol for money on the internet, similar to how people could communicate with anyone in the world using a phone number. This universal protocol for money would simplify cross-border transactions.
The head of the company suggested that Bitcoin may not necessarily become the primary currency for everyday transactions. Instead, he sees Bitcoin as a settlement layer for value transfer, with Lightning Network enabling fast and low-cost transactions on top of Bitcoin.
Marcus acknowledged the volatility of Bitcoin’s price and how it affects people’s willingness to spend it. He suggested that using small fractions of Bitcoin on the Lightning Network for specific value transfer purposes is more practical than using whole Bitcoins for everyday purchases.
When talking about the Lightning Network he explained that it could be described as a way to settle transactions in real time with low fees. It could facilitate the exchange of different currencies at the edges of the network, making cross-border transactions more efficient.
