March 31, 2020 Lightning Labs releases new protocol for authentication and paid APIs on the Lightning Network.

Lightning Labs, a software service provider for the Lightning Network, released its new Lightning Service Authentication Token (LSAT) protocol on Monday. LSAT allows for businesses to provide paid APIs on the second-layer payment network. LSATs function as tickets or receipts, similar to cookies, and allow users to repeatedly authenticate themselves for successive purchases from the same service. Unlike cookies, LSATs allow for the bearer to cryptographically verify themselves while offering enhanced privacy by not revealing the identity of the entity who purchases LSATs. In his blog post, Olaoluwa Osuntokun (CTO of Lightning Labs) explained that the new protocol would allow businesses to offer paid APIs, offering customers the ability to make regular subscription payments as opposed to having to pay subscriptions fully up-front.

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