dsflatyvia treechat·2w
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  "map_content": "I predict the Square Cash App BTC rollout will be detrimental to BTC...\r\nWhen millions of users try to withdraw from the Lightning Network to on-chain BTC my guess there will be severe on-chain congestion and transaction fee spikes. \r\n \r\nSquare (Block) has launched automatic Bitcoin payments for millions of U.S. merchants, enabling them to accept Bitcoin at checkout with zero processing fees through 2026 and near-instant settlement via the Lightning Network.\r\nBitcoin Conversions allow eligible sellers to automatically convert 1% to 10% of their daily card sales directly into Bitcoin, which is deposited into their Cash App account daily; this feature includes a 1% conversion fee and is available to U.S. merchants excluding those in New York.\r\nIn a major rollout for November 2025, Square began enabling these Bitcoin payment capabilities by default for roughly 4 million merchants worldwide, allowing instant transactions without the need for manual setup or holding Bitcoin volatility.\r\nCash App Integration: Users can withdraw up to $10,000 daily and $25,000 weekly, making it a primary on-ramp for Bitcoin in the U.S.\r\nFuture Goals: Block aims to integrate Bitkey self-custody wallets with Square to allow automatic sweeps of Bitcoin payments to self-custody by 2026.\r\nRevenue Impact: Cash App's Bitcoin revenue surged 1,000% to $1.63 billion in Q3 2020, highlighting the platform's significant financial growth in the sector.\r\n\r\nCash App does not automatically convert Lightning Network Bitcoin holdings back into on-chain Bitcoin. Instead, the conversion happens manually when a user initiates a withdrawal.\r\nHere's how it works:\r\nLightning for Speed: The Lightning Network is used for fast, low-cost transactions within the Cash App ecosystem and for sending/receiving small amounts.\r\nOn-Chain for Withdrawals: When a user chooses to withdraw their Bitcoin to an external self-custody wallet, Cash App executes an on-chain transaction. This process moves the Bitcoin from its internal Lightning/custodial system onto the main Bitcoin blockchain.\r\nUser Control: The user triggers this conversion by selecting the \"Withdraw Bitcoin\" option and providing an external wallet address. The Bitcoin is then sent via the standard blockchain, incurring a network fee.\r\nIn essence, the Lightning balance is a fast, internal ledger for spending and receiving, while the on-chain network is used for final settlement and moving funds out of the Cash App platform.",
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dsflatyvia treechat·2w
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  "map_content": "BTC being stress tested with millions of on-chain transactions could be great news for bigger block Bitcoins.\r\nIf BTC with small blocks cannot operate efficiently as a large payment network the small block narrative collapses \r\n\r\nLightning Network withdrawals to the Bitcoin main chain generally cannot be batched. While the Lightning Network itself allows for the batching of multiple transactions within off-chain payment channels to improve efficiency, the process of moving funds back to the on-chain Bitcoin network (often called \"looping out\" or using a \"swap-out\") typically treats each withdrawal as a distinct on-chain transaction.\r\nPlatform Limitations: Specific platforms like Bitget explicitly state that \"The Lightning Network does not support batch withdrawals,\" requiring each transfer to be processed individually.\r\nTechnical Mechanism: Converting off-chain Lightning funds to on-chain BTC usually involves a \"reverse submarine swap\" or a direct channel closure, both of which result in a single on-chain transaction per batch of funds rather than a consolidated batch of multiple distinct withdrawals.\r\nExceptions via Services: Some third-party services (e.g., Bitcoin Well) may offer a \"batched\" transaction option where multiple swap requests are consolidated into one on-chain transaction, but this is a service-level feature rather than a native Lightning Network capability for standard withdrawals.\r\nUnlike standard Lightning transactions which are ephemeral and never recorded on-chain, every withdrawal to the main chain requires a confirmed on-chain transaction, meaning the batching benefits of Lightning do not directly apply to the final settlement step unless facilitated by specific custodial or swap services.",
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