Coinbase, the prominent cryptocurrency exchange, has officially affirmed its commitment to incorporate the Lightning Network, a layer 2 payment protocol. This move comes as users increasingly seek swifter and more cost-effective Bitcoin (BTC) transactions.
The Lightning Network (LN) was developed with the aim of addressing Bitcoin’s scalability challenges and competing with newer cryptocurrency ventures that boasted faster and more economical transaction solutions.
Until recently, major cryptocurrency exchanges such as Coinbase and Binance had not expressed any intention to adopt this layer 2 solution. Some community members contended that Lightning Network integration offered fewer financial incentives for exchanges.
In defiance of the prevailing storyline, Brian Armstrong, the CEO of Coinbase, has officially affirmed the exchange’s determination to incorporate the Lightning Network. Armstrong went on to mention that this choice was made following a month-long investigation by Viktor Bunin, a Protocol Specialist at Coinbase, into the viability of Lightning Network integration. It’s worth noting that during this period, influential figures like MicroStrategy founder Michael Saylor and Square CEO Jack Dorsey publicly raised questions about Armstrong’s stance on the Lightning Network.
After Armstrong’s announcement, the cryptocurrency community rejoiced over Coinbase’s decision to integrate the Lightning Network. This integration is expected to open the door for more users to experience cost-effective and efficient Bitcoin microtransactions. It’s worth noting that on July 17, Binance also revealed the successful integration of the Lightning Network for Bitcoin withdrawals and deposits.
Binance users can now opt for the “LIGHTNING” option when withdrawing or depositing Bitcoin. Among the other choices available are BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.