Swiss-based gold exchange Vaultoro has successfully implemented the Lightning Network protocol. This would allow Lightning Network users to purchase gold directly from their BTC wallet. Vaultoro, which has been accepting Bitcoin as payment for several months as of now, has implemented Lightning Network to achieve an increase in trading volume.
The Vaultoro platform, which is based on blockchain technology, enables purchase of 99.9% pure gold bars directly from refineries. The blockchain platform offers better security and liquidity to investors.
Users can buy and sell gold directly without any intermediates. The P2P nature of the platform makes sure that a user gets the most competitive price and avoid high brokerage charges. To offer the highest security to clients, the project has been implemented in partnership with Pro Aurum Switzerland. Clients are sent monthly statements as well. More importantly, the gold is 100% insured against physical loss.
The implementation of Lightning Network has trimmed down the BTC transaction charges considerably, allowing more retail investors to enter the market without hesitation. Users will be able to purchase even 0.1 gram of gold due to the implementation of the Lightning Network protocol upgrade.
Joshua Scigala, CEO of Vaultoro is extremely optimistic about the impact of Lightning Network on the business of Vaultoro. One of the greatest advantages of using Lightning Network is that there is no need to fund any other wallet for completion of a transaction. As the transfer can be done directly, the risk is eliminated. Scigala, however, reminded that Lightning Network is still in Beta sage and users should avoid sending large amount. Despite these cautions, as of now, this seems to be the best way to purchase gold, which is stored safely and audited by BDO on a monthly basis.