In a Twitter Spaces chat on Wednesday, Michael Saylor outlined how Microstrategy can contribute to the Bitcoin and Lightning ecosystem.
In 2023, MicroStrategy will unveil software solutions and applications that utilise the Bitcoin Lightning Network. In a recent Twitter Spaces event, the company’s executive chairman, Michael Saylor, discussed their plans to not only hold and purchase BTC, but also to contribute to the Bitcoin ecosystem through their software offerings.
As MicroStrategy expands into the world of Bitcoin, it will use its existing expertise to provide businesses with tools for the Bitcoin and Lightning network.
How does the Lightning Network work?
The Lightning Network is a way to make payments using Bitcoin without having to record each transaction on the blockchain. When two users want to open a payment channel, they put a certain amount of Bitcoin into a smart contract on the blockchain.
They can then make as many transactions as they want within the channel. When they want to close the channel, they can either finalise the balance and record it on the blockchain, or they can agree on a new balance and keep the channel open.
The Lightning Network is helpful for small, frequent transactions because it allows users to avoid high fees and long confirmation times. It also helps to increase the capacity and scalability of the Bitcoin network.
Plans for the Lightning Network
MicroStrategy is looking at using the Lightning Network for a variety of purposes, including monetizing online content, enterprise marketing, setting up paywalls on websites, and internal corporate controls.
Michael Saylor believes that chief marketing officers should be able to offer small amounts of Bitcoin, known as satoshis, as incentives for customers to leave reviews or provide feedback. He said:
“We want to make it possible for any enterprise to spin up Lighting infrastructure in an afternoon and onboard thousands of employees or customers. We want to plug it into enterprise technology and make it a marketing strategy for any forward thinking CMO.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.