Coinbase Joins Lightning Network for Faster Bitcoin Transactions

Coinbase Joins Lightning Network for Faster Bitcoin Transactions

Coinbase Joins Lightning Network for Faster Bitcoin Transactions

Cryptocurrency exchange Coinbase has affirmed its intention to integrate the layer 2 payment protocol Lightning Network in response to user demand for faster and less expensive Bitcoin transactions.

The Lighting Network (LN) was developed to aid in solving Bitcoin’s scalability issue and to compete with newer cryptocurrency projects that promised faster and less expensive transactions.

Until recently, prominent cryptocurrency exchanges, such as Coinbase and Binance, had no intention of adopting the layer 2 solution, as many community members argued that NL integration provided fewer incentives for exchanges’ income.

Contrary to the prevalent narrative, Coinbase CEO Brian Armstrong affirmed the exchange’s intention to implement the Lightning Network.

“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.”

The decision was made one month after Viktor Bunin, Protocol Specialist at Coinbase, began investigating the viability of LN integration, he added. During this period, the founder of MicroStrategy, Michael Saylor, and the CEO of Square, Jack Dorsey, publicly questioned Armstrong’s stance on LN.

Following Armstrong’s announcement, the cryptocurrency community applauded the decision, as Coinbase’s LN integration will enable more users to participate in inexpensive and efficient Bitcoin microtransactions.

On July 17, Binance announced the conclusion of Bitcoin LN withdrawal and deposit integration. When withdrawing or depositing Bitcoin, Binance users can now select “LIGHTNING” as an option.

BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20 are additional choices.

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