How secure is the Lightning Network

The Lightning Network is built on top of the existing secure Bitcoin blockchain, which makes it very secure. Because it is a decentralized protocol, the funds are stored in different nodes controlled by different users. This means that users are not required to trust a single operator or server to facilitate their transactions. Additionally, the Lightning Network increases the privacy of payments, as transactions do not have to be stored on the public Bitcoin blockchain.

Through our integration with Lightning Network, Xapo Bank members are able to make instant Bitcoin payments at low fees in a secure manner. We do not store members' funds in Lightning Network nodes. We only store our own Bitcoins, which we use for enabling members to transact.

Yes, payments on the Lightning Network are instant, as they occur off-chain and do not require miners to confirm them. This makes it faster than traditional Bitcoin payments, which can take up to an hour to be confirmed. This also reduces transaction fees, as miners are not required to process the payments. You can now make  these lightning-fast Bitcoin payments on the Xapo Bank app, at a low fixed fee of less than US $0.01*.

‍_{* US $0.001 at the time of writing. Subject to change.}