Why Bitcoin’s Lightning Network is Beating Visa and Mastercard
According to recent data from Glassnode, the Lightning Network associated with Bitcoin (BTC) is much cheaper to use compared to traditional payment networks.
The median fee rate for sending value across the Lightning Network is only 0.0029%, which is 1,000 times cheaper than the cost of using payment processors such as Visa and Mastercard.
James Check, a Glassnode analyst, told Cointelegraph that the current median fee rate is 3,000 Satoshis per 1 BTC, which is equivalent to $0.84 for sending $28,800 worth of value.
This rate is significantly lower than that charged by major credit card companies. The Lightning Network was proposed as a way to make Bitcoin a more effective payment method, and the data shows that it is fast and low-cost.
However, the network’s throughput could be questioned for payments above $1,000.