Per the announcement, the software provides a non-custodial way to receive funds through the Bitcoin (BTC) scalability solution Lightning Network, through on-chain settlement with the “Loop Out” function.
The Loop Out function attempts to solve an issue which can affect Lightning Network users. The post explains that, after having received a certain amount via the Lightning Network, users can sometimes not receive more until he or she moves the funds on-chain, which can be done with the Loop Out feature.
Since the solution is non-custodial, the funds can be moved onto any chosen address such as an exchange, a hot wallet, a cold wallet or a crypto-to-fiat service. The announcement specifies that for this release, Loop Out transactions are limited to a maximum of 0.01 BTC.
Still, while this initial — alpha version — release focuses on the Loop Out feature, the announcement promises that a future “Loop In” function enabling users to move on-chain BTC into the Lightning Network will be added in the next version. This function will reportedly enable users to refill their Lightning Network channels with their own wallets or from exchanges.
As Cointelegraph recently reported, Bitcoin mining and development company Bitfury has entered into a partnership with United States payments processor startup HadePay to allow its merchants to accept Lightning Network transactions.
At the beginning of the current month, Morgan Creek Digital founder Anthony Pompliano suggested that major U.S. retailer Kroger should deploy the Lightning Network in its stores, following the brand’s decision to stop accepting Visa at some locations.
Original story and image from: https://cointelegraph.com/news/lightning-labs-releases-alpha-version-of-lightning-offramp-solution-lightning-loop