From now on, Binance users can use Lightning Network to complete Bitcoin transactions.
Renowned cryptocurrency exchange, Binance, has successfully implemented the Bitcoin Lightning Network for both BTC withdrawals and deposits on its platform.
As announced on July 17th in an official Binance blog post, users on the crypto exchange can now employ the Layer-2 scaling solution for their BTC transactions.
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For BTC withdrawals and deposits, users can opt for “LIGHTNING” from a list of available options, which also includes Bitcoin, BTC (SegWit), Bitcoin, BNB Smart Chain (BEP-20), BNB Beacon Chain (BEP2), and Ethereum ERC-20.
Earlier in May, Binance hinted at the possibility of integrating the Lightning Network, prompted by the suspension of BTC withdrawals due to a spike in pending transactions. This surge was closely linked with the upsurge in BTC network gas fees.
The significant increase in transaction fees is primarily connected to the advent of memecoins on Bitcoin, realized in the form of BRC-20 tokens.
Following the significant increase, Binance confirmed its efforts to incorporate the Lightning Network on June 20th. This move came to light soon after users detected Binance's own Lightning nodes.
With this successful integration, Binance is now part of a growing list of major crypto exchanges, including Bitfinex, River Financial, OKX, Kraken, and CoinCorner, which have adopted the Lightning Network.
Coinbase CEO Brian Armstrong had also expressed plans to incorporate the Bitcoin Layer-2 network on Coinbase in April, although a precise timeline for this integration was not specified.
As a Layer-2 solution, the Lightning Network is designed to expedite Bitcoin transactions and reduce costs by facilitating off-chain transaction channels.
This significant achievement by Binance propels the cryptocurrency industry one step further in its quest for efficiency and scalability.
