Lightning-enabled Bitcoin ATMs go live in Australia

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Lightning Bitcoin ATMs help process transactions faster and solve the problem of pooling funds for multiple transactions.

In a recent development, the Australian city of Coolangatta announced the launch of its first Bitcoin ATM integrated with Lightning Network capabilities. Lightning Network is a Layer 2 scalability solution for Bitcoin and seeks to provide faster transactions at even lower costs. The new Bitcoin ATM in Coolangatta has been installed at The Strand Mall and is available for public use. Bitcoin Lightning ATMs will work the same as normal Bitcoin ATMs, but would save considerable time due to the instant transaction capabilities of the Layer-2 network.

Furthermore, it would also make it easier to buy very small amounts of Bitcoins at its smallest denomination of Satoshis. 1 satoshi is equivalent to 0.00000001 BTC.

Now Bitcoin ATMs settle transactions directly on the blockchain network. However, this has a few restrictions of its own. For example, operators have to adapt to batch transactions whenever miner fees rise very sharply during bitcoin bull run times.

This means that whenever a user buys Bitcoin through an ATM, they do not receive it immediately. Operators have a process in place to wait for users from other ATM networks to use the machines before bundling and sending transactions for multiple users into a single bulk transaction. Using Lightning Network can help solve this problem to a great extent.

Benefits of Lightning Bitcoin ATMs

Thanks to the Lightning Network, transactions can be processed immediately since the operator does not need to pool funds. As soon as the user inserts the money, he receives the payments via the Lightning Network.

However, there is still some debate over whether using Lightning Network would result in significantly lower fees. But at any time, they would still be lower than on-chain payments. Australia is currently competing with El Salvador and seeking to become the fourth largest Bitcoin ATM hub in the world. As we enter 2023, Australia has a total of 213 Bitcoin ATMs.

Despite the crypto winter, crypto ATM installations around the world have increased. According to data from Coin ATM Radar, the total number of crypto ATMs worldwide has reached 38,602. Of this total, 6,071 ATMs were installed last year in 2022 alone.

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Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and motivates himself by sharing his acquired knowledge. In his spare time, he reads thrillers and occasionally explores his cooking skills.

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