After surpassing El Salvador as the fourth-largest bitcoin ATM hub, Australia installed a bitcoin ATM with built-in Lightning Network capabilities in Coolangatta. Given its layer-2 capabilities, a Lightning Network bitcoin ATM is anticipated to save a lot of time for bitcoin users.
Blockchain transactions will be settled immediately by cryptocurrency ATMs
Australia has now brought bitcoin’s Lightning Network closer to crypto enthusiasts after installing an ATM built with the platform’s technology. The ATM, installed at a shopping centre named Strand in Coolangatta, is expected to be less costly than traditional virtual currency ATMs.
Due to the rapid transaction capabilities of the layer-2 Lightning solution, a bitcoin Lightning ATM operates very similarly to a typical bitcoin ATM while saving a lot of time. Additionally, it enables the purchase of tiny amounts of bitcoin, mostly in satoshis, the smallest unit of currency in the cryptocurrency; 1 satoshi is equivalent to 0.00000001 BTC.
Blockchain-based cryptocurrency ATMs directly settle transactions at the moment, but this has its limitations. For example, when bitcoin network miner fees sharply soared between 2017 and 2018, operators had to adjust to batching transactions.
It effectively means that even though a person buys BTC using an ATM, it is not sent to them immediately. The mechanisms used by the operators’ group send out transactions for multiple users at once in a bulk transaction after waiting for other ATM network users to use the machines. With the aid of the Lightning Network, the issue can be solved substantially.
Australia surpasses El Salvador for total number of bitcoin ATMs
The first country to use bitcoin, El Salvador, has slipped down the list of countries with the most crypto ATM installations. Australia will surpass El Salvador in 2023 to move up to the fourth spot with the most ATMs. There are 219 bitcoin ATMs in Australia right now.
In an effort to make bitcoin a legal tender in El Salvador, President Nayib Bukele decided to deploy more than 200 bitcoin ATMs throughout the nation. As a result of this action, El Salvador surpassed the US and Canada to become the third-largest crypto ATM hub in September 2021.
On the other hand, Australia and Spain outperformed Central America in terms of ATM density. In Australia, during the final three months of 2022, installed 99 crypto ATMs. At the beginning of 2023, Australia had 219 active crypto ATMs, seven more than El Salvador.
As soon as money is deposited, the user gets paid using the Lightning Network, making the transaction instantaneous. The fees will probably be less than an on-chain payment, though it is still debatable whether they will significantly decrease.