Blockchain company Lightning Labs announced the initial release of the Lightning Network Offramp Lightning Loop in its blog. In accordance with the announcement, the software provides a non-custodian method of receiving funds through the Bitcoin Scalability Network (BTC) Lightning Network, through a network setting with the “Loop Out” function.
The Loop Out feature attempts to solve a problem that may affect users of the Lightning network. The message explains that after receiving a certain amount via the Lightning network, users sometimes can’t get more until he or she moves funds along the chain, which can be done using the Loop Out function.
Since the solution is not storage, funds can be moved to any selected address, such as an exchange, hot wallet, cold wallet, or the crypto-to-fiat service. The announcement states that for this release, Loop Out transactions are limited to a maximum of 0.01 BTC.
However, while this initial alpha version focuses on the Loop Out feature, the ad promises that the future Loop In feature, which allows users to navigate the BTC chain to the Lightning network, will be added in the next version. This feature is reported to allow users to replenish their Lightning Network channels with their wallets or exchanges.
At the beginning of this month, the founder of Morgan Creek Digital, Anthony Pompiano, invited the large American retailer Kroger to deploy the Lightning network in their stores after the brand decided to stop accepting Visa in some places.