OpenNode,a bitcoin payments processor has received a large investment sum of $1.25 million from Tim Draper, the venture capitalist investor. The funds were raised during the seed round and will be used in the expansion of the team of the company. These include the compliance and legal teams of the company. Bitcoin
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How it works
OpenNode works by offering bitcoin payments that can be free of risk. It is also instantaneous. The main goal is to offer the service to businesses while generating revenue of up to 1% for each transaction, profiting on a large number of transactions instead of charging a higher fee. It is powered by the lightning network which is a second layer of the BTC network. This means that all the transactions are made atop the bitcoin original layer. It makes them a lot cheaper and faster compared to when they are made on the top of the main chain. This Lightning Network was launched earlier this year as a scaling solution. During this period, the LN was filled with bugs and could not be used for the intended purpose. Presently, a lot of the bugs have been taken care of, and the technology is far more effective than it was in the past. According to OpenNode, the company followed the developments made by the Lightning Network, and they saw its capacity grow by a whopping 15,000%. The spokesperson of OpenNode also affirmed that the company would keep tackling emergent markets during the funding round. It also plans to use the Lightning Network to make them more profitable because the technology can reduce costs while promoting a more efficient and creative model for people to make payments with bitcoin. About Tim Draper
Tim Draper is a well-known venture capitalist. Draper is the founding partner of Draper Associates and Draper Fisher JurvetsonVenture Capital. Both companies are popular venture capital companies. He has been a Blockchain bull for a while now and is responsible for funding several startups when the Blockchain industry was young. Draper is known for his large investments in the crypto space. Two years ago, the venture capitalist was at the forefront of a$4.2 million series. This was a funding round for a Blockchain company bases in Texas known as Factom. The goal of this project was to create a range of products with the Blockchain technology as its basis. Other investments of Tim Draper
Also,in recent times, Draper was responsible for investing more than $760,000 in Bitwage, a Bitcoin startup. This startup is a bitcoin payroll as well as an international wage payment service that lets users receive payment or pay wages in bitcoin. Other alternative payments options are also accepted such as commodities or local currencies. The employers and employees can use Bitwage to cut costs, increase transparency while boosting the speed of global wage payments. The company was previously launched to be a payment platform that allows freelancers and employees to receive their wagers in BTC without requiring a sign up by the employees or clients. Over time, this platform has evolved and is now an international payroll service. The venture capitalist also invested a huge sum in a funding round of Mirror, a smart contract platform.