Lightning Labs, the developer of the high-speed transaction protocol Lightning Network (LN), has secured $10 million in Series A funding round.

The news was announced by Lightning Labs CEO and co-founder, Elizabeth Stark, in a weblog post on Feb. 5. The company plans to allocate the raised funds to further development of the Lightning payments engineering and scaling of its developer ecosystem.

Release of Lighting Labs's offset paid production

In the same proclamation, Lightning Labs likewise introduced the beta version of Lightning Loop, the company's first paid production. Lightning Loop aims to help startups, node operators and users send and receive on Lightning more efficiently, wherein users tin transfer funds between the Bitcoin (BTC) blockchain and the LN in a not-custodial manner.

Stark also revealed that the company has seen over 30 companies that integrated its node monitoring tool called ldn then far, which allows node operators to monitor node usage in real fourth dimension. Network reportedly motivated the developers to create a tool for preemptively spotting node and network issues.

Cointelegraph reached out to Stark for comment just had received no response equally of press time. This article volition be updated awaiting a response.

Efforts to speed up blockchain-based transactions

Lightning Network is designed to speed upwards blockchain-based transactions. It adds another layer to Bitcoin'southward blockchain and enables users to create payment channels between any ii parties on that extra layer. These channels tin exist for as long as required, and considering they're set up betwixt 2 people, transactions will be well-nigh instant and the fees will be extremely depression or even non-existent.

Over the years, the Bitcoin customs has come upward with diverse proposals on how to amend Bitcoin's scalability. They take nonetheless to reach a resounding consensus. Earlier in February, a group of researchers at the Massachusetts Institute of Technology revealed the creation of a new cryptocurrency-routing scheme to speed up blockchain-based transactions.

The solution considers that transactions are performed with minimal involvement from the blockchain, and claims to eliminate a scenario in which one of the users in the joint business relationship handles too many transactions.