Documentation stemming from the Securities and Exchange Commission (SEC) suggests that Zap – a company that has partnered with credit card company Visa – has garnered more than $3 million to establish further bitcoin payment protocols.
Zap Is Rolling in Dough
The funding round occurred in April of this year and was led by Green Oaks Capital and Morgan Creek. Zap is currently building a new platform atop the Lightning Network that could potentially make it much easier for users to pay for goods and services with cryptocurrency.
26-year-old founder Jack Mallers talked further about Zap’s goals and how the company’s initial operations came to be:
One of the early use cases for us is content creators. Journalists or video game streamers put up profiles backed by our infrastructure, and anyone in the world can tip them… Our users today don’t ever know we’re using bitcoin when they’re using dollars. It’s just kind of like we’ve melted it in the background. I think tens of millions of people will be using this stuff in the next few years, and that just takes a little bit of capital.
The Lightning Network has proven to be a relatively controversial topic in the worlds of bitcoin and crypto. BTC is the globe’s oldest cryptocurrency, having been established in 2008. It is the father of other digital assets in that they all came later, and it also still ranks as the most popular cryptocurrency.
At the same time, the BTC blockchain is being bogged down regularly by heavy traffic and congestion, leading to slow transaction times and high fees on occasion. Developers have sought to alleviate this problem through the Lightning Network, which allegedly allows smaller transactions to occur off-chain and permits the BTC network to experience less traffic and enjoy a much-needed rest.
At the time of writing, Zap employs more than a dozen people from all over the world including Spain, Germany, Austria, and the Ukraine. Mallers says that he’s looking to utilize the current funds to hire more people and “surround himself” with more investors. He explained:
I know bitcoin well. I know markets and trading well, and I know engineering well, but that’s it though. I’ve never scaled a business, and so it was about just surrounding myself with people that have done this before and wanted to be a part of this journey.
Making BTC Payments a Staple of the Future
BTC investor Anthony Pompliano of Morgan Creek fame said that he has high hopes for Zap and is excited to see where the company goes in the future. He mentioned:
Our hope is that Jack and the team can continue to build products and services that make using bitcoin easier and more intuitive, while also accelerating the digital currency’s rise to eventually become the global reserve currency.