David Marcus, known for being the former head of PayPal and for having led the Facebook stablecoin project (Meta), has just unveiled Lightspark. His new company will serve to provide the necessary infrastructure for projects that wish to develop through the Lightning Network, an overlay of Bitcoin (BTC).
Lightspark, the latest addition to the Lightning Network
David Marcus, the French entrepreneur formerly president of PayPal who also served as head of cryptocurrency operations at Meta, has just unveiled Lightspark, his new venture dedicated to Bitcoin (BTC).
“I wanted to let you know that we are creating a new company called Lightspark to explore, build and expand the capabilities and utility of #Bitcoin. As a first step, we are building a team to further develop the Lightning network.”
The new entity already has the backing of a wide range of well-known blockchain investors, including Paradigm, a16z Crypto, Coatue and Matrix Partners.
Lightspark will provide the infrastructure for businesses, developers and merchants who want to use the Lightning Network, Bitcoin’s overlay for ultra-fast and low-cost transactions.
Generally speaking, the Lightning Network is the solution of choice for everyday purchases thanks to these two advantages, which make it an interesting alternative to bank cards, for example.
Although the project is new and more information is expected, we already know that Lightspark does not plan to create its own token or stablecoin.
The success of the Lightning Network
The Lightning Network has been in the news several times since the beginning of 2022, especially following the integration of its network on the Cash App, which serves about 60 million users. This allows them to directly transact in Bitcoin to any digital wallet capable of hosting it, including merchants.
Last month, we learned that the Strike wallet, which runs on the Lightning Network, would enable more than 400,000 retailers to accept Bitcoin as a payment method through a partnership with Shopify, NCR and Blackhawk Network.
David Marcus’ past experiences could thus bring real added value to the Lightning Network ecosystem, as Sriram Krishnan, an investor at a16z, was able to argue:
“We have always been big believers in the history and unique role of Bitcoin in crypto. We have been looking to back a team to build on Bitcoin and believe that David Marcus and the Lightspark team he has assembled can bring exciting new technological innovations to Bitcoin and the Lightning Network.”
According to a report by Arcane Research, the payment volume seen on the Lightning Network has exploded by +400% over 2021 in the first quarter of this year alone. In the month of March, more than 80 million users used the network for their transactions.
This more than considerable increase is due to the contribution of protocols and companies that want to benefit from its advantages. According to its previous report, the number of Lightning Network users could reach 700 million by 2030.
