Binance Completes Integration of Bitcoin Lightning Network

After a month has passed since Binance’s announcement to integrate the Bit Lightning Network, it is finally here. The world-famous cryptocurrency exchange Binance has integrated the Bitcoin Lightning Network on their platform for BTC withdrawals and deposits.

What is Bitcoin Lightning?

Cryptocurrency enthusiasts might have noticed the recent surges in transaction fees. These have primarily been attributed to the introduction of the so-called “memecoins” as BRC-20 tokens on the Bitcoin network. This new token standard has contributed to the increased costs of transactions and a general clog of processing times.

Following user observations of Binance’s Lightning nodes, Binance subsequently confirmed its intention to onboard the Lightning Network on June 20.

The Lightning Network is designed to enhance Bitcoin transactions by enabling the creation of off-chain transaction channels. It aims to make transactions faster and more cost-effective. Overall, it is an incredible boon for the Bitcoin community.

In May, Binance initially hinted at integrating the Lightning Network after temporarily pausing BTC withdrawals due to a significant influx of pending transactions and the resultant rise in BTC network gas fees. That said, now it is finally here.

Lightning Network in the Current Industry

Binance recently confirmed this significant development in a blog post on July 17, announcing the integration of the layer-2 scaling solution for BTC withdrawals and deposits. They also made this announcement across their social media platforms.

Users now have the option to select “LIGHTNING” when choosing to withdraw or deposit Bitcoin on the Binance platform. This option joins other available choices such as BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.

By embracing the Lightning Network, Binance joins the ranks of prominent exchanges like Bitfinex, River Financial, OKX, Kraken, and CoinCorner who have also adopted this technology.

Coinbase CEO Brian Armstrong has also expressed intentions to integrate the Bitcoin layer 2 network on Coinbase, but a specific timeline for implementation has not been provided.

Overall, this development is expected to greatly enhance the user experience when utilizing BTC, offering improved efficiency and convenience.