How It Works

Lightning Ramp keeps Bitcoin reserves available in both the Lightning Network and Coinbase. This allows payments to flow freely back and forth.

When one side of the reserves get low, Lightning Ramp performs an on- chain transaction to rebalance the reserves.

Lightning Ramp manages the payment channels to save you time and money.

 

Under the Hood

Alice wants to buy a cup of coffee. She knows that Bitcoin can be slow, but remembers she has the Lightning Ramp. She opens the mobile app and scans the QR code from the coffee shop.

Funds are sent from her Coinbase account into the Lightning Ramp’s Coinbase reserve. For security, she is asked to confirm with Coinbase’s two-factor authentication. Done. Alice has completed her payment with a simple and secure process. In the background, the Lightning Ramp maintains reserves on the Lightning Network and leverages its payment channels to identify the fastest route to the coffee shop’s wallet. Lightning Ramp may have one or hundreds of open channels at any given moment, to ensure maximum connectivity and redundancy to any wallet.

These funds are dispersed into the Lightning Network and are passed from one node to the next, with each node able to identify the previous and future node, but never the entire route. This increases privacy. To guarantee transaction fulfillment, the Lightning Network punishes nodes that fail to pass funds to a future node, leading the dissenting node to forfeit all of the funds in its payment channel.

These funds are dispersed into the Lightning Network and are passed from one node to the next, with each node able to identify the previous and future node, but never the entire route. This increases privacy. To guarantee transaction fulfillment, the Lightning Network punishes nodes that fail to pass funds to a future node, leading the dissenting node to forfeit all of the funds in its payment channel.

The funds arrive in the shop owner’s wallet in less than a second.