OpenNode, a Tim Draper-backed startup, announced it raised $1.25 million on Tuesday and it’s hoping that its new platform will change the way people view bitcoin. In most corners of the market, bitcoin is viewed primarily as a store of value, rather than an everyday medium of exchange. OpenNodes is building a bitcoin payments platform with a focus on ease of use, the firm says. It’s plug-and-play offerings enable merchants to sign up with an email and immediately begin accepting bitcoin.
To be sure, there are a number of firms in the bitcoin payments market. Still, the company’s offering differentiates from firms such as Coinbase Commerce and Bitpay inasmuch as it allows merchants to accept bitcoins through the Lightning Network, a second-layer solution for an instant bitcoin transaction, the firm says. “We didn’t create OpenNode to create a Coinbase Commerce 2.0 or Bitpay 2.0,” Co-founder and CEO Afnan Rahman, told The Block. “These solutions have limits on their invoices; we don’t have these limits.”