- Binance has integrated the Lightning Network for fast and cheaper transactions.
- The Lightning Network has been in use in Kraken and Bitfinex.
Binance has announced a successful integration of Bitcoin’s Lightning Network. According to the company, “deposits and withdrawals for Bitcoin (BTC) are now open on the Lightning Network.”
The exchange expects the Lightning Network to help it tackle users’ concerns about widespread bottlenecks faced on withdrawals. The exchange notes a high demand for BRC-20 transactions, due to the growing popularity of meme coins, leading to network congestion. Binance expects the integration of the Lightning Network to transform how users interact with digital assets.
The move comes after Binance set up Bitcoin Lightning nodes in readiness for the integration in June. Bitcoin withdrawals are enabled through the Lightning Network on Kraken and Bitfinex.
Lightning Network to Increase Transaction Speeds and Cut Fees
They have often labeled the Lightning Network a “Bitcoin second layer.” It was created in 2016 and aims to increase transaction speeds, thus lowering network congestion.
To deposit Bitcoin via the Lightning Network, you have to pay a low base fee of $0.04. Fees on regular Bitcoin deposits have been higher and unpredictable, rising to $30 in May.
The second-layer solution will also increase transaction speeds. While regular Bitcoin transactions take several minutes per confirmation, transactions on the Lightning Network can be completed in seconds.
Lightning Network creates off-chain payment channels that let users transact with each other directly. The transactions do not need to be recorded on the main Bitcoin blockchain, preventing network overload.
