Payment Provider Bitrefill Runs Successful Lightning Transaction Test

This may have been the first real consumer transaction using the Lightning network.

AccessTimeIconDec 29, 2017 at 9:31 p.m. UTC
Updated Aug 18, 2021 at 7:48 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Faster and cheaper bitcoin transactions may soon go alive.

A recent transaction posted on Twitter from inside the offices of prepaid phone payment provider, Bitrefill, used the Lightning network to top up a mobile (for real) at near instant speed with zero fee, as the Tweet touted.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • While such transaction is not yet generally available to the public and may still be largely limited to command line interfaces, it nonetheless gives a peek into how the future may look like for regular bitcoin users.

    Lightning has been one of the most watched bitcoin-scaling solutions. It's a new layer of abstraction atop the bitcoin protocol that allows transactions to occur more quickly and cheaply, without sacrificing the security. According to data site Bitinfocharts, currently the average transaction fee of bitcoin is at $36.

    Yet, people who saw Bosworth's tweet may have been confused because the use case isn't visible to Bitrefill customers. According to CEO Sergej Kotliar, the transaction shown occurred when Bosworth was testing out Bitrefill's implementation with one of the company's developers, by invitation. Bosworth needed to refill his phone at the time anyway, so he decided to test it with real money. It worked.

    Kotliar said:

    "Everything is ready to go on our end, but we're not launching it yet until a Lightning wallet is released for general use on mainnet."

    Wallets need to be updated in order to interact with the Lightning protocol layer, and this has not generally happened yet, Kotliar explained.

    Bitrefill announced it was implementing Lightning in August, on its blog. Interested users and developers are able to test it now, with fake bitcoin.

    Based in Stockholm, Bitrefill primarily focused on enabling people to pay for prepaid phones with cryptocurrency. "Our high-level company vision is to enable people all over the world to use bitcoin as money. Practically we enable people to use their coins to buy everything that is digital and money-like, so pay their bills, refill their phones, vouchers, etc," its CEO told CoinDesk in an email.

    Noting that production implementations of new innovations often surface tricky problems, the small team at Bitrefill decided one way it could contribute to bitcoin was to move quickly to adopt Lightning, but doing so also helped it to address frequent concerns voiced by its consumers around transaction costs and delays.

    "Recent mempool overloads have affected us hard, but over time a bigger concern for us has been confirmation times," Kotliar wrote. "Here the instant transactions of lightning lets us make a truly great customer experience. Lightning solves not only confirmation times but also many other UX problems of bitcoin."

    Kotliar urged peer companies not to wait to implement Lightning. He wrote:

    "Integration with Lightning has been surprisingly easy. It runs in a way similar to how bitcoin works, and fits neatly with how our and many company wallets work already."

    Lightning bolt photo via Shutterstock.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.