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French Bitcoin Startup ACINQ Raises $1.7 Mln For Lightning Network Growth

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French Bitcoin technology company ACINQ has raised $1.7 million to fund the accelerated global adoption of the Bitcoin Lightning Network. The latest funding brought in a total funding of $2 million to date for the project.

The Series Seed funding was led by Serena Capital, with the participation of Talend co-founder Bertrand Diard, Bricks app founder Sébastien Lucas, Bitcoin trader Alistair Milne as well as KDS and Snapcar founder Yves Weisselberger.

ACINQ says it will use the new funding to grow its engineering team, develop new Lightning-based services as well as build and grow the Lightning Network.

Lightning Network is an open payment network that brings VISA-scale scalability to Bitcoin. While decentralized public blockchains offer a maximum throughput of less than 10 transactions per second, Visa's high-availability payment network reportedly offers average throughputs of over 24,000 transactions per second, with peak capacity of over 56,000 transactions per second.

ACINQ claims that Lightning Network offers unlimited throughput, instant payments and very low fees. It is a scalable instant payment network built on top of the blockchain, the underlying technology of cryptocurrencies such as Bitcoin.

The Lightning Network adds a second layer to Bitcoin's blockchain and enables users to create payment channels between any two parties. The open protocol layer leverages the power of blockchains and smart contracts for security, without creating an on-blockchain transaction for individual payments.

Bitcoin's Lightning Network is a decentralized system for instant, high-volume micro-payments that removes the risk of delegating custody of funds to trusted third parties. The network is expected to improve Bitcoin's scalability and hence will help in bitcoin adoption.

The Lightning Network was first proposed in a 2015 white paper by Thaddeus Dryja and Joseph Poon. Along with ACINQ, there are two other startups, U.S.-based Blockstream and Lightning Labs, which are leading the development of the Lightning Network with input from other members of the Bitcoin community.

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