Binance is working towards full integration and implementation of the Bitcoin Lightning Network to ensure a seamless customer experience for deposits and withdrawals.
The world’s largest crypto exchange on Tuesday, June 20 binance announced that it has begun operating nodes on Bitcoin’s Layer-2 scalability platform, aka the Lightning Network. Binance said that this would be a significant step towards integrating deposits and withdrawals on the crypto exchange.
Binance confirmed its presence on the Lightning Network via a tweet, acknowledging users who had seen it. However, it also added that some technical work is still pending before full implementation.
Exchange Tweeted,
“Binance is working to integrate the #Bitcoin Lightning Network for deposits and withdrawals. Some eagle-eyed users recently spotted our new Lightning nodes. Yep – that’s us! More technical work though That’s yet to happen. We’ll update once Lightning is fully integrated.”
As stated, the Bitcoin Lightning Network is a layer-2 protocol built on top of the Bitcoin blockchain to address scalability issues. Crypto market players can build payment channels on top of the Bitcoin Lightning Network. Additionally, they can also conduct off-chain transactions in a quick and affordable manner, while settling on the bitcoin blockchain whenever possible.
The Lightning Network aims to increase the speed, scalability, and privacy of bitcoin transactions. This will bring greater efficiency to microtransactions that take place on the bitcoin mainnet while reducing congestion and fees.
Binance to Leverage the Power of Lightning
Binance’s decision to integrate the Lightning Network on its end comes after it suspended deposits and withdrawals last May after facing a large amount of pending transactions. The surge in BRC20 transactions has led to an increase in congestion following the growing popularity of Memecoin, which was launched on the Bitcoin blockchain.
back then, exchange noted,
“To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and make adjustments accordingly if needed. Our team is also working on enabling BTC Lightning Network withdrawals. is doing, which will help in such situations.”
Binance has faced a legal battle seconds, which created uncertainty for the company. However, there is now a sense of relief as Judge Amy Berman Jackson has approved a consent settlement between Binance, Binance.US and the SEC. The settlement quashes the SEC’s temporary restraining order that aimed to freeze Binance.US assets.
Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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