Binance, the cryptocurrency exchange, has now fully integrated the Bitcoin Lightning Network into its platform for both BTC withdrawals and deposits. This significant development was officially confirmed by Binance through a blog post on July 17. Users of Binance can now leverage the layer-2 scaling solution for faster and more efficient Bitcoin withdrawals and deposits.
To benefit from the Lightning Network’s advantages, Binance users simply need to select the “LIGHTNING” option when withdrawing or depositing Bitcoin. In addition to this new option, other choices available include BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.
The integration of the Lightning Network comes as a response to the challenges posed by the surge in BTC network gas fees, which led to a temporary halt in BTC withdrawals on the platform. This congestion in transaction fees has been partly attributed to the emergence of memecoins in the form of BRC-20 tokens on the Bitcoin network, representing a new token standard.
On June 20, Binance confirmed its ongoing efforts to integrate the Lightning Network after observant users noticed Binance’s own Lightning nodes. By embracing the Lightning Network, Binance joins the ranks of other well-known exchanges such as Bitfinex, River Financial, OKX, Kraken, and CoinCorner, who have also adopted this technology.
Coinbase CEO, Brian Armstrong, had previously expressed his intention to integrate the Bitcoin layer 2 network on Coinbase back in April, although no specific timeline was provided for the implementation.
The Lightning Network’s primary objective is to enhance the speed and cost-effectiveness of Bitcoin transactions by enabling users to establish off-chain transaction channels.
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