coincentral-main-menu-search-eyeglass
Hamburger X.

Lightning Network is Here and It’s Already Seen Its First Purchase

lightning network is here

Lightning Network is Here

Introduced by Joseph Poon and Thaddeus Dryja back in 2015, the Lightning Network has been a much-anticipated addition to the Bitcoin ecosystem.  We’ve got a guide on how it works here, but basically, the feature allows for instantaneous, near feeless transactions of Bitcoin through an off-chain network.  If you’re at all familiar with Bitcoin’s transaction times and fees, you may see why the Lightning Network is a needed scalability solution.

Well, the Lightning Network’s mainnet is here, and it’s already been used by a community member to make a purchase.  According to a Reddit post by a throwaway account dubbed btc_throwaway1337, the anonymous individual used LN to purchase a VPN router from TorGuard:

“I used Lightning Network’s mainnet (via lnd) to purchase an AR300M VPN Router through TorGuard, and it’s here! This may have been the first ever physical purchase on LN.”

The post, entitled “[Lightning] The future just arrived at my doorstep!”, continues to provide proof of the transaction.  The OP, who brands himself as “your average Bitcoin investor,” goes on to provide further details about the purchase:

“I saw TorGuard’s tweet, so I decided to contact them. I enquired as to purchasing more than just a monthly subscription, their staff gave me LN peering information, I opened a channel, received an invoice, and here we are!”

The customer even used this payment channel to “route payments to/from others ~8-10 times” through TorGuard, while also tipping another user in satoshi, a Bitcoin micro-measurement that the Lightning Network wishes to accommodate better than current transaction methods.

TorGuard, a router and internet provider that specializes in VPN and proxy services, announced that it would begin accepting Bitcoin Lightning Network payments on January 8th.

Since the Lightning Network is still in testing, u/btc_throwaway1337 told users to proceed with caution and understand the risks involved with using it, stating, “Mainnet is still caveat emptor! I went down the rabbit hole fully willing to lose my BTC. I got lucky, others may not!”

These developments mark a historic day for Bitcoin’s development and cryptocurrency’s real-world adoption, as it is, potentially, the first ever use of the Lightning Network to purchase a physical item.  As such, many users likened the moment to the pizza transaction in May of 2010, whereby a developer used Bitcoin to purchase two pizzas in the first instance of Bitcoin’s use in an offline transaction.

 

NEWSLETTER

Newsletter (Sidebar)

  • This field is for validation purposes and should be left unchanged.

RELATED ARTICLES

Minergate

MinerGate CEO Claude Lecomte on Cryptocurrency Mining

The computer has come a long way from being a gigantic hunk of a metal and plastic...

Read More
usb asic miner

Are USB ASIC Miner Devices Profitable?

We examine various USB ASIC miner options on the market today and determine whether or not investing...

Read More
crypto detective

On the Frontline: How Blockchain Forensics Fight Crypto Crimes

There are some stories involving Bitcoin, crime, and blockchain forensics that could be straight out of a...

Read More

NEXT ARTICLE

Getting Started Gold Bars.

NEXT ARTICLE

MinerGate CEO Claude Lecomte on Cryptocurrency Mining

The computer has come a long way from being a gigantic hunk of a metal and plastic surrounded by groups of curious men and women with clipboards. Fast-forward a few…

ABOUT THE AUTHOR

Getting Started Gold Bars.

ABOUT THE AUTHOR

Colin is a freelance writer and crypto-enthusiast based in Nashville, TN. When he’s not speculating crypto futures, he’s probably letting his hair down and/or heading to a music festival–because stereotypes exist for a reason.