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Binance Incorporates the Bitcoin Lightning Network
Renowned cryptocurrency exchange, Binance, has successfully integrated the Bitcoin Lightning Network into its platform to support BTC withdrawals and deposits. Binance confirmed this new development through its blog post on July 17th, highlighting the fact that Binance customers can now leverage the Layer-2 scaling solution when transacting with Bitcoin.
More Options for Users
From henceforth, when users decide to either deposit or withdraw Bitcoin from their accounts, they will now see “LIGHTNING” as an option available to them. Other alternatives at their disposal include the BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.
The Path Leading to Bitcoin Lightning Integration
Binance first dropped hints on introducing the Bitcoin Lightning Network back in May after they were compelled to temporarily halt BTC withdrawals because of a deluge of pending transactions. This suspension was attributed to the sudden increase in BTC network gas fees. The creation of memecoins through BRC-20 tokens, a new token standard on the Bitcoin network, is largely responsible for this hike in transaction fees.
On June 20th, barely a month later, Binance reaffirmed its commitment to integrate the Lightning Network, following the discovery of the platform's Lightning nodes by alert users.
Embracing the Bitcoin Lightning Network
By integrating the Bitcoin Lightning Network, Binance now joins an elite group of exchanges such as Bitfinex, River Financial, OKX, Kraken, and CoinCorner that have done the same. Brian Armstrong, CEO of Coinbase, had earlier in April communicated his intent to include the Bitcoin Layer 2 network on Coinbase without giving a precise timeline for its introduction.
The primary aim of the Lightning Network is to speed up Bitcoin transactions and reduce the cost, facilitated by the creation of off-chain transaction channels.
