Lighting Network helps Bitcoin solve its scalability problem and compete against newer cryptocurrency projects that promise comparatively faster and cheaper transactions.
Crypto exchange Coinbase has confirmed its decision to integrate layer-2 payment protocol Lightning Network as users seek faster and cheaper Bitcoin (BTC) transactions.
Lighting Network (LN) was created to help solve Bitcoin’s scalability problem and to compete against newer cryptocurrency projects that promised comparatively faster and cheaper transactions.
Up until recently, major crypto exchanges, including Coinbase and Binance, had no intent to adopt the layer-2 solution as many community members argued that LN integration offered fewer incentives for exchanges’ income.
Countering the predominant narrative, Coinbase CEO Brian Armstrong confirmed the exchange’s decision to integrate Lightning Network. He added:
We’re looking into how to best add Lightning. It’s non-trivial, but I think worth doing. I’m all for payments taking off in Bitcoin.
Not sure why you think we’re ignoring Bitcoin – we’ve onboarded more people to Bitcoin than probably any company in the world.
Let’s build it… https://t.co/9dFGYd6XZt
— Brian Armstrong (@brian_armstrong) August 2, 2023
Following Armstrong’s announcement, the crypto community celebrated the decision, as Coinbase’s LN integration will allow more users to witness affordable and efficient Bitcoin microtransactions.
On July 17, Binance announced the completion of Bitcoin LN integration for BTC withdrawals and deposits.
Binance users who choose to withdraw or deposit Bitcoin are now able to select “LIGHTNING” as an option. Other options include BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit) and Ethereum ERC-20.