Coinbase, a prominent cryptocurrency exchange, has officially embraced the Lightning Network (LN), a layer-2 payment protocol.
This integration is in response to user demands for swifter and more cost-effective Bitcoin transactions.
The Lightning Network was conceived as a solution to Bitcoin’s scalability issues and to compete with newer cryptocurrencies that promised quicker and cheaper transactions.
For a considerable period, major crypto exchanges like Coinbase and Binance had hesitated to adopt this layer-2 solution.
Many community members argued that integrating the Lightning Network would offer fewer financial incentives for exchanges.
Contrary to the prevailing sentiment, Brian Armstrong, the CEO of Coinbase, confirmed the exchange’s decision to integrate the Lightning Network.
In his statement, he emphasized the importance of Bitcoin in the crypto world and expressed excitement about enabling faster and cheaper Bitcoin transactions.
Armstrong also acknowledged that the integration process would take some time and requested patience from users.
READ MORE: Federal Reserve Vice Chairman Highlights CBDC Research and Stablecoin Oversight in Fintech Speech
This decision followed a month of exploration by Viktor Bunin, a protocol specialist at Coinbase, into the feasibility of integrating the Lightning Network.
During this period, influential figures in the crypto industry, such as Michael Saylor of MicroStrategy and Jack Dorsey of Square, publicly questioned Armstrong’s stance on the Lightning Network.
The crypto community welcomed Coinbase’s announcement, as the integration of the Lightning Network will make affordable and efficient Bitcoin microtransactions accessible to a broader audience.
In a related development, on July 17th, Binance, another major cryptocurrency exchange, revealed that it had successfully integrated the Lightning Network for Bitcoin withdrawals and deposits.
Binance users now have the option to choose “LIGHTNING” when withdrawing or depositing Bitcoin.
This additional option enhances the flexibility of users and contributes to the growing adoption of layer-2 solutions in the cryptocurrency ecosystem.
Other available options for withdrawals and deposits on Binance include BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.
Overall, these integrations mark a significant step forward in addressing Bitcoin’s scalability issues and making cryptocurrency transactions more efficient and cost-effective for users on these platforms.
Other Stories:
CFTC Commissioner Calls for Tech-Driven Investor Protection Reforms
Bitcoin Rebounds from Three-Month Lows Amid Traders’ Doubts
SEC Pursues Appeal in Ripple Labs Lawsuit Over XRP’s Security Classification
