First Bitcoin Lightning Network transaction completed via Bitrefill

Bitcoin Lightning Network transactions might finally add some utility to increasingly impractical Bitcoin payments. Alex Bosworth, a prominent software developer, was able to pay his phone bill via a bitcoin transaction that utilized the "Lightning Network" (LN). This is by far the first transaction ever to utilize the LN, which is considered to be the solution to bitcoin's scaling problems.
The Bitcoin network has been fraught with issues as of late. The highly congested network caused incredibly slow transactions that came with a hefty price tag. However, the Bitcoin Lightning Network promises to change that, especially since the first transaction has just been conducted on the network by making a purchase on the mobile top-up service, Bitrefill.

According to Alex Bosworth, a prominent software developer, the first transaction was recently completed on the lightning bitcoin mainnet. The transaction was an online purchase on the Bitrefill platform. Bosworth was able to pay his own phone bill, with no added transaction fees, and complete the transaction immediately. Bitrefill is a platform which allows users to top up prepaid mobile services using their bitcoin or litecoin holdings. Bitrefill encompasses 600 different operators, spread over 150 countries worldwide.

The Bitcoin Lightning Network might prove to be the long-awaited scaling solution that the Bitcoin community has been looking for. The Lightning Network has already been in the works for a few years. It uses an off-chain system by creating a network of payment channels, where funds are directly transferred, instead of relying on a third-party. In theory, the Bitcoin Lightning Network can prove an efficient scaling solution, as it allows thousands of transactions to be conducted on the network per second, without compromising network security.

The CEO of Bitrefill, Sergej Kotliar, noted that this event marked a major turning point for payments made with bitcoin. According to Kotilar, most blockchains currently don't allow scaling solutions for users who wish to use their cryptocurrencies for everyday payments. In turn, this harms the cryptocurrency's utility. The Bitcoin Lightning Network will enable users to enjoy the best of both worlds. Users will have a trustless custody of funds, while also having access to a quicker and more cost-efficient customer experience. Kotilar concluded that his firm was eager to support Lightning payments and to support greater innovation in the industry.

According to Kotilar, the Lightning Network payment integration process is surprisingly easy and painless, which has encouraged Bitrefill to look into further developments. Kotilar explained that Bitrefill’s next step would be to implement full support for lightning payments.

In terms of Bitrefill’s role in the network’s larger development, Kotilar stated that the biggest obstacle faced by new payment networks is implementation. While Kotilar acknowledged that Bitrefill is a relatively small company, they’d like to help in the implementation process.

Bitrefill caught some attention earlier, when they allowed PC gamers to purchase games on Steam after the platform announced that they would no longer accept cryptocurrency payments. According to Kotilar the amount of Steam voucher sales have exceeded Bitrefill’s expectations. The CEO added that the company will be adding more vouchers in the near future.