Vaultoro, which is a platform for bitcoin-to-gold trading recently announced its incorporation of Lightning Network in its exchange transaction. This will enable users to purchase gold with bitcoin directly from their wallets.
This integration with Lighting Network enables instant transactions between participating nodes and is a solution to scalability problem as users can buy gold directly in seconds without having to pass through the normal six confirmations process. It is a good development indeed, since it allows for exceptionally low fees and easy access for both buyers and sellers which will encourage new investors.
The CEO of Vaultoro, Joshua Scigala, who is glad that users are fast embracing this new development warns that Lightning Network is still in its beta testing stages, hence investors should not send large amounts of bitcoin because usage is at owner’s risk. In his own words:
“Wow from the ~17.55 #bitcoin loaded into the #lightningnetwork at the moment, almost half a #btc is connected to our channel after only 3 days. Centralization is impossible due to the speed the network changes. NOTE: Don’t trust Node names, anyone can create a node called Vaultoro.”
Regardless of the transaction size restriction of allowing only deposits up to 100 satoshis using the Lightning Network, it is still the best method to purchase gold.