Coinbase to Integrate Bitcoin Lightning Network – Coinbase, a prominent cryptocurrency exchange, has officially announced its plan to incorporate the Lightning Network, a layer-2 payment protocol. This move comes in response to user demands for swifter and more cost-effective Bitcoin (BTC) transactions. The Lightning Network (LN) was developed to address Bitcoin’s scalability challenges and compete with newer cryptocurrency projects promising faster and cheaper transactions.
Historically, leading cryptocurrency exchanges like Coinbase and Binance had been reluctant to embrace this layer-2 solution. This reluctance was driven by the argument within the community that integrating LN would result in fewer financial incentives for exchanges. Contradicting the prevailing storyline, Coinbase’s CEO, Brian Armstrong, has affirmed the exchange’s choice to integrate the Lightning Network.
He added: “Bitcoin is the most important asset in crypto and we’re excited to do our part to enable faster/cheaper Bitcoin transactions. Will take some time to integrate so please be patient.” This decision follows a month-long investigation by Viktor Bunin, a protocol specialist at Coinbase, into the practicality of integrating the Lightning Network. Within this timeframe, notable figures like MicroStrategy’s founder, Michael Saylor, and Square’s CEO, Jack Dorsey, publicly raised inquiries about Brian Armstrong’s stance on LN.
After Armstrong’s declaration, the cryptocurrency community expressed jubilation over the decision, as Coinbase’s incorporation of the Lightning Network will enable a broader audience to experience cost-effective and efficient Bitcoin microtransactions. Additionally, on July 17, Binance revealed the successful integration of the Lightning Network for Bitcoin withdrawals and deposits. Binance users can now opt for “LIGHTNING” when withdrawing or depositing Bitcoin, alongside various other choices such as BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.
The integration of the Lightning Network by both Coinbase and Binance represents a significant step forward for the world of cryptocurrency. These developments pave the way for faster, more cost-effective Bitcoin transactions, opening doors for a broader range of users to experience the benefits of microtransactions on the blockchain.
People Also Read: Animoca Brands Raises $20M for Metaverse Project Mocaverse
As the crypto landscape continues to evolve, these exchanges’ commitment to embracing innovative solutions like the Lightning Network underscores the industry’s dedication to addressing scalability challenges and meeting the growing demand for efficiency and affordability. With these changes, the future of cryptocurrency transactions looks brighter than ever, promising exciting possibilities for users and businesses alike