Lightning Network takes physical form in Australia with Bitcoin ATM

[ad_1]

The Australian town of Coolangatta got its first Bitcoin ATM with built-in Lightning Network capabilities. The new ATM has been installed at The Strand Shopping Center in Coolangatta and is now available to the public.

A Bitcoin Lightning ATM operates quite similarly to traditional Bitcoin ATMs, but saves a significant amount of time due to the instant transaction capabilities of the Lightning Layer 2 solution. It also allows very small amounts of Bitcoin to be purchased ( BTC), mostly in satoshis, the smallest denomination of Bitcoin, with 1 satoshi equaling 0.00000001 BTC.

At the moment, cryptocurrency ATMs settle transactions directly on the blockchain, but this has its own restrictions. For example, operators had to adapt to batch transactions when mining fees on the Bitcoin network increased significantly between 2017 and 2018.

In practice, this means that even if a user buys BTC through an ATM, it is not immediately transmitted to them. Operators have processes in place that wait for other ATM network users to use the machines before aggregating and sending transactions for multiple users at once in a bulk transaction. This problem can be solved to a large extent with the help of the Lightning Network.

By using Lightning, the transaction becomes immediate as the operator does not need to consolidate the funds as soon as the money is inserted, the user receives the payment via the Lightning Network. Although there is still some debate as to whether the fees will be significantly reduced, they will likely be lower than an on-chain payment.

Related: Bitcoin ATM Installs See All-Time High in May, Biggest Drop Since 2019

The recent installation of the Lightning-enabled Bitcoin ATM in Australia comes after the country overtook El Salvador to become the fourth largest Bitcoin ATM hub in the world. Australia had 216 ATMs in 2023.

According to Coin ATM Radar, the total number of crypto ATMs worldwide currently stands at 38,602, of which 6,071 ATMs were installed in 2022 alone.

[ad_2]