Lighting Network helps Bitcoin solve its scalability problem and compete against newer cryptocurrency projects that promised comparatively faster and cheaper transactions.
Crypto exchange Coinbase has confirmed its decision to integrate layer 2 payment protocol Lightning Network as users seek faster and cheaper Bitcoin (BTC) transactions.
Lighting Network (LN) was created to help solve Bitcoin’s scalability problem and to compete against newer cryptocurrency projects that promised comparatively faster and cheaper transactions.
Up until recently, major crypto exchanges, including Coinbase and Binance, revealed no intent to adopt the layer 2 solution as many community members argued that NL integration offered fewer incentives for exchanges’ income.
The team did a great job digging into this, and we've made the decision to integrate Lightning. Bitcoin is the most important asset in crypto and we're excited to do our part to enable faster/cheaper Bitcoin transactions. Will take some time to integrate so please be patient. https://t.co/FneeXkLI25
— Brian Armstrong ️ (@brian_armstrong) September 13, 2023
Countering the predominant narrative, Coinbase CEO Brian Armstrong confirmed the exchange’s decision to integrate Lightning Network. He added:
“Bitcoin is the most important asset in crypto and we’re excited to do our part to enable faster/cheaper Bitcoin transactions. Will take some time to integrate so please be patient.”
The decision comes a month after Viktor Bunin, Protocol Specialist at Coinbase, started investigating the feasibility of LN integration. During this timeline, MicroStrategy founder Michael Saylor and Square CEO Jack Dorsey publicly questioned Armstrong’s position on LN.
We’re looking into how to best add Lightning. It’s non-trivial, but I think worth doing. I’m all for payments taking off in Bitcoin.
Not sure why you think we’re ignoring Bitcoin – we’ve onboarded more people to Bitcoin than probably any company in the world.
Let’s build it… https://t.co/9dFGYd6XZt
— Brian Armstrong ️ (@brian_armstrong) August 2, 2023
Following Armstrong’s announcement, the crypto community celebrated the decision as Coinbase’s LN integration will allow more users to witness affordable and efficient Bitcoin microtransactions.
Related: Bitcoin Lightning Network is growing, but 3 major challenges remain
On July 17, Binance announced the completion of Bitcoin LN integration for BTC withdrawals and deposits.
#Binance has completed the integration of Bitcoin ( #BTC ) on the Lightning Network and deposits and withdrawals are now open.
More details here https://t.co/aIofPdtAGY
— Binance (@binance) July 17, 2023
Binance users who choose to withdraw or deposit Bitcoin are now able to select “LIGHTNING” as an option. Other options include BNB Smart Chain (BEP-20), Bitcoin, BNB Beacon Chain (BEP2), BTC (SegWit), and Ethereum ERC-20.
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